The property located at 7605 Collins Avenue (the Property) is a privately-owned, single-family residence of Rudy and Elizabeth Perez (Property owners). The Property is nestled in Altos del Mar Park to the north, bounded by a RM-1 zoning district to the west, the North Shore Library to the south, and Collins Avenue to the east. At the October 18, 2023, City Commission meeting, the Mayor and City Commission considered the viability of purchasing the Property and directed the Administration: i) to meet with the property owner and explore the opportunity to purchase the property at its true fair market value; ii) to obtain two additional appraisals for the property; iii) to explore a purchase of the property with a purchase price not to exceed $10 million; and iv) to report back to the City Commission.

At the January 31, 2024 meeting of the City Commission, the Administration presented item R9 Y to the Mayor and City Commission relating to the City’s potential purchase of the subject site. The Administration presented three (3) valuation studies commissioned by the City ($4.2 million; $2.1 million; and 3.75 million) and a fourth appraisal provided by the Property owners (value of $7.25 million).  

On February 23, 2024, the Finance and Economic Resiliency Committee (FERC or Committee) discussed the City’s acquisition of Property. The Administration presented various potential funding sources including, PayGo Capital Fund, Building Department Fund, Parking Fund and General Fund Reserves.

The Committee recommended utilizing reserves from the Building Department Fund to acquire the Property. While the Property's main purpose would be for Building Department activities, other departments could utilize portions of the building for ancillary purposes, with the costs covered by rental payments.

Funding in the amount of $6,530,000 is being appropriated through the Fourth Amendment to the FY 2024 Capital Budget accompanying this item.