LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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DISPOSITION OF REAL PROPERTY - 113 WEST JORDAN STREET
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RECOMMENDATION:
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That City Council approve the disposition of the real property located at 113 West Jordan Street (Parcel Ref. No. 000S009010012120) via sale in the amount of $2,500 plus coverage of closing costs to Robert L. Hardy, Sr., which staff has determined to be a fair offer. Further, that City Council authorize the Mayor to take all actions necessary to execute any deeds, contracts or subsequent documents related to the disposition of this property. Finally, that City Council authorize the proceeds from the sale, minus any associated miscellaneous costs, be placed in the Gas Utility (Pensacola Energy) Fund.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
The real property located at 113 West Jordan Street is approximately 0.0755 acres and zoned R-1AAA. The parcel is in a residential area but is currently denoted as a utility due to the parcel's decommissioned natural gas regulator. The low-pressure regulator station on the Jordan Street parcel was taken out of service in September 2019, after the completion of Pensacola Energy’s 3-year cast-iron system replacement project. City Council approved the surplus and disposition via direct negotiation on October 22, 2020.
With the parcel of benefit to only one of the adjacent homeowners due to the regulator station's location and orientation, staff determined direct negotiation to be the most effective method for disposition. The adjacent homeowner and pending buyer, Robert Hardy, purchased his home in 1974 and was interested in purchasing the parcel when the regulator was no longer in use, as a means to further access his own property. He recently received confirmation that the regulator was decommissioned and has contacted City staff on several occasions in the past year, with the latest contact in early September 2020.
Per Council policy, an appraisal was obtained, and notices were mailed to property owners within the subject property's 300-ft radius on October 27, 2020. Sherrill Appraisal Company assessed the parcel with a value of $5,400 and noted that assemblage with an adjacent property owner as the highest and best use of the parcel. Based on the benefits to the City from both the addition of this parcel to the tax roll and the release of liability associated with this obsolete parcel, staff has determined the offer from Mr. Hardy to be fair. Also in consideration of the offer, the appraisal report notes the “atypically small size of the parcel” and the potentially negative effect on the “demand, marketability, and resulting value of the subject property” due to the economic impact of COVID-19.
PRIOR ACTION:
October 22, 2020 - City Council approved the surplus and disposition of the real property via direct negotiation.
FUNDING:
N/A
FINANCIAL IMPACT:
As the real property is an asset of Pensacola Energy, proceeds from the eventual sale will go into their enterprise fund, minus any miscellaneous costs associated with the sale. Also, City revenue will be increased by the addition of this parcel to the tax roll.
CITY ATTORNEY REVIEW: Yes
10/27/2020
STAFF CONTACT:
Keith Wilkins, City Administrator
Richard Barker Jr., Deputy City Administrator - Administration & Enterprise
Don Suarez, Pensacola Energy Director
ATTACHMENTS:
1) Council Action Approving Surplus - 10-22-2020
2) Offer and Correspondence from Robert Hardy
3) Aerial and Parcel Info - 113 W Jordan St
4) Appraisal - 113 W Jordan St
PRESENTATION: No end