Placement: First Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 25-48, Public Hearing, Authorizing the Acquisition of 104.91 Acres of Real Property known as Rosser Lakes; Authorizing the Conveyance of a Non-Exclusive, Perpetual Access Easement therein of Approximately 7.41 Acres in Favor of Rosser Lakes; and Authorizing the Conveyance of a Ground Lease within the Access Easement Premises to Rosser Lakes.
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Submitted By: Jesus Merejo, City Manager
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Jennifer Davis, City Manager’s Office
2. Parties: City of Port St. Lucie and Rosser Lakes, LLC.
3. Purpose: The acquisition and management of conservation lands and green spaces has been prioritized in the City Council’s Strategic Plan. As such, an opportunity to acquire land that meets such needs has been identified for acquisition.
4. New/Renewal/Modified: New.
5. Duration: The property is being purchased in Fee Simple, and a Ground Lease is being executed at Closing for a portion of the parcel so that the Seller can retain an interest in the existing cell tower. The Ground Lease shall be for an initial term of thirty (30) years, with five (5) consecutive ten (10) year renewal periods. The Ground Lease provides for a corresponding access easement that aligns with the area and terms associated with the Ground Lease.
6. Benefits to Port St. Lucie: The City securing the 104.91-acre Rosser Lakes site increases land to be set aside for conservation that would have otherwise been available for development.
7. Cost to Port St. Lucie (Annual and Potential): Pursuant to Section 4 of the enclosed Purchase and Sale Agreement, the parties agreed on a Purchase Price of $2,500,000. There is no revenue associated with the Ground Lease, other than a one-time (lump sum) payment from Rosser Lakes to the City of $16,000.00, due at Closing.
Presentation Information: Staff will provide a brief presentation, if requested.
Staff Recommendation: Move that the Council approve the Ordinance authorizing the acquisition of the real property in accordance with the Purchase and Sale Agreement between the City of Port St. Lucie and Rosser Lakes, LLC, as well as authorizing the Ground Lease and the Access Easement, and authorizing the execution of any and all document necessary to effectuate the transaction.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Ordinance.
2. Move that the Council not approve the recommendation.
Background: Rosser Lakes, LLC, owns a certain parcel of land located south of SW Open View Drive, west of SW Rosser Blvd, and east of the right of way for Interstate 95. Historically, the site was used for mining operations, and residential development was proposed several times over the last few years.
The Seller approached the City to gauge interest in the City’s acquisition of the property. The Seller presented an appraisal reflecting a land valuation of $6,270,000.00 based on current entitlements on the land for mining operations. With interest, the City secured an appraisal on the same parcel for use as conservation / park land, reflecting a land valuation of $815,000.00. The City then pursued negotiations on the parcel, with the Buyer and Seller ultimately agreeing to at $2,500,000.00 purchase price, just under $0.55 per square foot for the land. The Purchase and Sale Agreement provides for an Inspection Period of thirty (30) days from execution, and a Closing ten (10) days thereafter. Both parties can agree to shorten the timeframes indicated within the agreement in an effort to work toward a swift closing.
As part of the agreed upon purchase price, the Seller would retain all rights to the existing cell tower located on the site, securing a Ground Lease for same, as well as an access easement for the Ground Lease site.
Issues/Analysis: As noted above, acquisition of this property will enable the City to recognize additional conservation land that would otherwise be available for development.
Financial Information: The purchase price is $2,500,000. A lump sum lease payment of $16,000.00 will be due from the Seller to the Buyer at Closing. No additional compensation for the Ground Lease will be recognized by the City during the term of the lease.
Special Consideration: N/A
Location: The site is located along the west side of SW Rosser Blvd, south of SW Open View Drive and east of the right of way for Interstate 95.
Attachments:
1. Ordinance
2. Exhibit A to Ordinance - Purchase and Sale Agreement including referenced Exhibits
3. Access Easement
4. Ground Lease Agreement
5. 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: 25122-05
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.