ADD-ON LEGISLATIVE ACTION ITEM
SPONSOR: City Council Member Teniadé Broughton
City Council Member Allison Patton
D.C. Reeves, Mayor
SUBJECT:
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PROPOSED ACQUISITION OF REAL PROPERTY - 401 N. REUS ST
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RECOMMENDATION:
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That City Council approve the proposed purchase of real property located at 401 North Reus Street (Parcel No. 000S009010010015) from Truth for Youth Inc. for up to $1,500,000 purchase price plus estimated 5% in closing costs for up to a total amount of $1,575,000. Further, that City Council waive the Policy for the Acquisition of Real Property requiring an appraisal, due to the time constraints associated with this specific acquisition. Finally, that City Council authorize the Mayor to continue negotiations for the parcel, take the actions necessary to execute and administer the acquisition, consistent with the parameters set herein and consistent with the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
In late February 2023, City and CRA staff became aware of the possible availability of the Truth for Youth parcel at 401 N. Reus Street, located at the northeast corner of Belmont and DeVilliers in the eponymous historic neighborhood. The parcel is approximately 2.28 acres and is currently zoned C-3 (Commercial). Though the property is not listed for sale, a search of public records shows a pending Amended Final Judgement on the parcel recorded in December 2022. Due to its cultural significance and condition, this property was recently listed on the Florida Trust for Historic Preservation’s 2022 Florida’s 11 to Save List, as former site of the old Smith’s Bakery.
Funds under CRA’s purview are available to purchase this parcel, which is located in the Urban Core Redevelopment Area. The utilization of these CRA funds for this acquisition was approved by the CRA Board at its March 6, 2023, meeting, via CRA Resolution No. 2023-02 CRA. Resolution No. 2023-023 was added to the March 9, 2023, City Council agenda as an add-on item. Due to its size (almost an entire city block) and historic significance, this property can be used for historic preservation, community space, and attainable housing. Further analysis and community input will be necessary to establish the specifics of redevelopment plans for the parcel.
Due to the time constraints associated with the pending judgement, staff was unable to have an appraisal conducted prior to the necessary CRA Board and City Council actions for acquisition of the site. In keeping with the City’s policy on the use of commercial real estate service professionals, Beck Partners provided a broker’s opinion of value (BOV) on the parcel, with the valuation determined to be between $1,400,000 to $1,625,000. The City is currently negotiating with the owner for acquisition of the site.
PRIOR ACTION:
March 6, 2023 - CRA Board approved the expenditure of CRA Funds via CRA Resolution No. 2023-02
March 6, 2023 - City Council added Resolution No. 2023-023 to its March 9, 2023 agenda
FUNDING:
Budget: $ 1,575,000 Community Redevelopment Agency Fund
Actual: $ 1,500,000 Land Purchase (up to)
75,000 Estimated Closing Costs
$ 1,575,000 Total (up to)
FINANCIAL IMPACT:
An available balance of $2,028,128.57 is within the Urban Core Acquisition & Redevelopment line item in the FY 2023 Community Redevelopment Agency Fund which is sufficient to fund this purchase.
STAFF CONTACT:
Don Kraher, Council Executive
David Forte, Deputy City Administrator
Sherry Morris, Development Services Director
Amy Lovoy Finance Director
Victoria D’Angelo, CRA Assistant Manager
Deana Stallworth, Property Lease Manager
ATTACHMENTS:
1) ESCPA Record - 401 N. Reus Street
2) Brokers Opinion of Value
PRESENTATION: No