ACTION ITEM
SPONSOR: Teniade Broughton, Chairperson
SUBJECT:
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RESOLUTION NO. 2023-02 CRA - ACQUIRING REAL PROPERTY AT 401 NORTH REUS STREET.
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RECOMMENDATION:
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That the Community Redevelopment Agency (CRA) adopt Resolution No. 2023-02 CRA
A RESOLUTION OF THE CITY OF PENSACOLA, FLORIDA, COMMUNITY REDEVELOPMENT AGENCY RELATING TO COMMUNITY REDEVELOPMENT WITHIN THE URBAN CORE COMMUNITY REDEVELOPMENT AREA; PROVIDING FINDINGS; APPROVING AND AUTHORIZING THE EXPENDITURE OF CRA FUNDS TO ACQUIRE CERTAIN REAL PROPERTY THEREIN LOCATED AT 401 NORTH REUS STREET IN FUTHERANCE OF THE PURPOSES ESTABLISHED IN CHAPTER 163 PART III, FLORIDA STATUTES, AND THE URBAN CORE REDEVELOPMENT PLAN; AND PROVIDING AN EFFECTIVE DATE.
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SUMMARY:
The adopted Urban Core Community Redevelopment Plan identifies acquisition of property as a key redevelopment activity. Acquisition of the property located at 401 N. Reus Street will support the CRA and City’s objectives, by securing real property to be used to further the goals and objectives of the redevelopment plan and Chapter 163, Part III Florida Statutes and will be used for such purposes, including but not limited to affordable housing and preservation and conservation of the district.
The property is located within the historic Belmont and DeVilliers neighborhood and is the former site of the historic Smith’s Bakery. Due to its cultural significance and condition, the property was recently listed on the Florida Trust for Historic Preservation’s 2022 Florida’s 11 to Save list. The site encompasses almost a full city block, containing 2.28 acres of land. Due to the size and historic significance of this site, it is anticipated that acquisition will facilitate both historic preservation, community space and affordable housing. However, further analysis and community input will be necessary to further establish the redevelopment plans.
Due to the time constraints associated with facilitating acquisition of this particular property, a fair market value appraisal could not be performed. Alternatively, the City has obtained a broker’s opinion of value (BOV) from Beck Partners, in keeping with the City’s policy for the use of commercial real estate service professionals. The estimated value is between $1,400,000 to $1,625,000. An offer will be made to the seller for an amount up to $1,500,000. The offer amount is justified based on the redevelopment goals established by Chapter 163, Part III, Florida Statues, including but not limited to, increasing the supply of affordable housing, preservation and conservation of the district, remediation of conditions of blight and future increases in the tax base.
PRIOR ACTION:
August 15, 2022 - The CRA approved the FY 2023 budget which included funding for acquisition and redevelopment.
January 17, 2023 - The CRA approved the FY2023 unencumbered carryover resolution for the Urban Core Redevelopment District for acquisition and redevelopment funding.
FUNDING:
Budget: $ 1,575,000 Urban Core TIF Fund (Up to)
Actual: $ 1,500,000 Land Purchase (Up to)
75,000 Estimated Closing Costs
$ 1,575,000
FINANCIAL IMPACT:
Funds are available from the 2023 Urban Core TIF Fund.
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STAFF CONTACT:
David Forte, Deputy City Administrator - Community Development
Sherry Morris, Development Services Director
Victoria D’Angelo, CRA Assistant Manager
Deana Stallworth, Property Lease Manager
ATTACHMENTS:
1) Resolution No. 2023-02 CRA
2) ESCPA Record - 401 N REUS STREET 32501
3) Brokers Opinion of Value
PRESENTATION: No end