| | | | | | | | | TO: | Finance and Economic Resiliency Committee Members
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| FROM:
| Alina T. Hudak, City Manager |
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| | DATE: | September 30, 2022
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| | SUBJECT: | A DISCUSSION REGARDING THE SALE OF CITY-OWNED VACANT PROPERTY LOCATED AT 226 87TH TERRACE (FOLIO 02-3202-006-0430). |
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| | | | | | | | HISTORY:
| The City is the owner of the vacant parcel located at 226 87th Terrace (Folio 02-3202-006-0430). On February 19, 2021, the Finance and Economic Resiliency Committee (“FERC" or the “Committee”) discussed potential revenue sources to supplement the City's capital and operating budgets including the possible disposition of City-owned properties, in their “as-is” condition.
At the June 11, 2021 FERC meeting, the Administration presented five (5) vacant parcels (“City-owned Properties”), identified for disposition by CBRE’s City Asset Inventory, which included the property located at 226 87th Terrace (the Property). Subsequently, at the July 23, 2021, FERC Budget Briefing, the Committee discussed the item and voted by acclamation to favorably move forward, directing staff to proceed with a procurement of the site whether it be with RFP or listing, and present these options before Commission.
On July 28, 2021, the Mayor and Commission adopted Resolution No. 2021-31826, accepting the recommendation from the FERC to engage CBRE for brokerage services to list the Property for sale. The Administration ordered an appraisal for the parcel to determine the value. Following the recommendation of the FERC, the Administration engaged CBRE for brokerage services for the competitive listing of the Property. Consequently, CBRE secured an offer of $4,600,000, which was at the appraised value and the highest bid received from various prospective buyers.
At the March 30, 2022 Finance and Economic Resiliency Committee meeting, the Committee favorably recommended that the City consider the sale of the City-owned Properties, provided that the proceeds of any sale be dedicated to capital projects determined by the City Commission.
In accordance with Section 82-38 of the City Code, on April 5, 2022 the City’s Planning Department prepared a Planning Analysis of the Property, a copy of which is attached hereto as Exhibit A. At the April 6, 2022 City Commission meeting, a discussion was held regarding the Committee’s recommendation and sale of City-owned Properties. The Administration presented the Planning Analysis and the offer to purchase secured by CBRE in the amount of $4,600,000. Upon deliberation of this parcel and other City-owned Properties, a motion was made to refer the two non-waterfront properties to the Planning Board for review. Pursuant to the City Code, the sale of the Property would require 4/7 vote approval of the Planning Board and 6/7 vote of the City Commission. |
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| | | | | | | | ANALYSIS:
| At the September 14, 2022 City Commission meeting, at the request of Commissioner David Richardson, a referral was made on the dais to discuss the sale of the Property at the September 30, 2022 FERC meeting.
On September 19, 2022, the buyer communicated to the City the withdrawal of the offer to purchase the Property. Accordingly, the pending offer is deemed withdrawn and as such, there is no pending transaction unless the City were to initiate a new process.
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| | | | | | | | CONCLUSION:
| | Based upon the foregoing, the Administration recommends the Finance and Economic Resiliency Committee withdraw the Property from sale. |
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| | | | | | | | Applicable Area
| | North Beach |
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| | | | | | | | | Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? | | Does this item utilize G.O. Bond Funds? | | | Yes | | No | |
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