ADD-ON LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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ACQUISITION OF REAL PROPERTY - 2305 WEST CERVANTES STREET (PENSACOLA MOTOR LODGE)
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RECOMMENDATION:
recommendation
That City Council approve the purchase of real property located at 2305 West Cervantes Street (Parcel No. 000S009060010173) from Jai Hanuman Motel Inc. for $855,000 plus an estimated $145,000 in closing costs, brokerage, and other potential costs, for a total amount not to exceed $1,000,000. Also, that City Council authorize the Mayor to take the necessary actions to execute and administer the acquisition, consistent with the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
The real property located at 2305 West Cervantes is the site of the Pensacola Motor Lodge, an older 30-room motel located near the western edge of the City limits. The parcel is approximately 1.57 acres and zoned C-3 (Commercial). A preliminary search of public records did not appear to show any current or pending liens or litigation involving the parcel as of April 2023. In March 2023, staff contacted Justin Beck of Beck Partners regarding the availability of several older drive-up style motels, as per the City’s list of qualified commercial real estate professionals.
Funds under CRA’s purview are available to purchase this property, which is located in the Westside Redevelopment Area. The Westside CRA Plan specifically states as an activity under 1B, Neighborhood Activity Corridor: Cervantes Street to “encourage adaptive reuse of vacant and underutilized parcels (old-motel cottages).” This acquisition is also part of the Mayor’s initiative of the potential reuse of these sites in further support of increasing attainable housing units.
Part of the overreaching CRA purpose as well is to remove blight situations. For example, Pensacola Motor Lodge has received over 2,300 responses from Pensacola Police Department over the last 10 years.
After receiving confirmation from the broker of the availability of this property, Frutticher-Lowery Appraisal Group conducted an appraisal in April 2022, and the appraised value of the property is $855,000. The owner has accepted the City’s offer of the appraised amount. As a caveat of the sale, the property must be free of renters prior to closing. Due to the possibility of long-term renters utilizing the motel as a de facto residence, there may be the opportunity for the City to provide some assistance towards relocation - the “other potential costs” of the Recommendation section. Also, a Phase I Environmental Site Assessment (ESA) will be completed prior to closing, as part of the due diligence per the City’s Property Acquisition Policy.
PRIOR ACTION:
None
FUNDING:
Budget: $ 855,000 2017 Westside Bond Proceeds
145,000 Westside TIF or 2017 Westside Bond Proceeds
$1,000,000
Actual: $ 855,000 Property Purchase
145,000 Est. Closing, Brokerage, Other Potential Costs
$1,000,000 Total
FINANCIAL IMPACT:
Funds are available from the 2017 Westside Redevelopment Bonds and the Westside TIF Fund. Funding from the bonds is derived from the former Lee St/W Moreno Stormwater Park Improvement project which has been discontinued. All or a portion of closing costs may be paid by Westside TIF funds subject to the restrictions on the bonds. With the acquisition of the property and subsequent reuse, the City and CRA will receive the benefit of the redevelopment being added to the tax rolls.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
5/30/2023
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Lovoy, Finance Director
Victoria D’Angelo, CRA Manager
Deana Stallworth, Property Lease Manager
ATTACHMENTS:
1) Property Appraiser Report - 2305 W Cervantes St
2) Appraisal - PML 2305 W Cervantes
PRESENTATION: No end