Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 22-17, Public Hearing, Authorizing the Conveyance of Approximately 2.95 Acres of City-Owned Real Property, as a Component of a Settlement Agreement with the St. Lucie County Fire District and Related to the City Center Project and Acquisition.
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Submitted By: Jennifer Davis, Project Manager, Community Redevelopment Agency
Strategic Plan Link: The City’s Vision for a diverse local economy and employment options.
Executive Summary (General Business): The purpose of this Ordinance is to authorize the conveyance of a parcel of land approximately 2.95 acres in size to the St. Lucie County Fire District as a component of a Settlement Agreement related to the City Center project and acquisition. Said conveyance is in consideration of the Fire District relinquishing their interest in any and all outstanding taxes and assessments on the City Center parcels being acquired. The transaction is part of a multi-agency coordinated and unified approach to satisfying the outstanding debt related to City Center parcels, prior to the City acquiring them.
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 City Council 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 and major taxing authorities. 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 and taxing authorities. These meetings were successful in negotiating with the tax certificate holders and major taxing authorities, with all outstanding tax certificates and a majority of the outstanding taxes being satisfied as part of the City’s purchase of the Parcels. At closing, and in lieu of further negotiations, the City intends to pay the smaller taxing authorities outstanding taxes owed. In return for outstanding taxes owed to the St. Lucie County Fire District, a portion of the property the Fire District currently leases from the City of Port St. Lucie was identified as a desired location for a new fire station. As such, the City agreed to transfer the 2.95+/- acre parcel to the Fire District as equitable consideration in exchange for the satisfaction of the City Center outstanding taxes owed to the Fire District.
Issues/Analysis: The settlement of outstanding taxes 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 will initiate master planning efforts on City Center once the parcels are acquired.
Financial Information: There is no new financial impact for the acquisition of the City Center parcels. 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. In addition, any development on the parcel to be transferred in exchange would be at the cost of the Fire District.
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. The parcel to be transferred is located along the west side of NW Milner Drive, approximately 1,000 feet south of W Midway Road, just south of and adjacent to the St. Lucie County Fire District Administrative Complex.
Attachments: 1. Ordinance; 2. Exhibit A to the Ordinance - Quit Claim Deed (the sketch and legal description of the property will be added to this item on second reading of this Ordinance); 3. Boundary Survey of Property Being Conveyed; 4. Settlement Agreement; and 5. Location Map of Property Being Conveyed
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: 6632
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.