A. MOTION TO ADOPT Resolution No. 2014-238 authorizing the sale of County-owned real property including all improvements located at 2677 NW 19 Street in Fort Lauderdale which is being operated as a Baker Act Receiving Facility (Crisis Stabilization Unit) to Henderson Behavioral Health, Inc., a Florida not-for-profit corporation, pursuant to Florida Statutes, Section 125.38 for the purchase price of $1; authorize the Mayor and Clerk to execute the Agreement and Quit Claim Deed; authorize delivery of Deed upon closing; and authorize the County Administrator or her designee to execute normal and customary title closing documents substantially in the form approved by the County Attorney's Office. (Commission District 9)
(Commissioner Holness pulled this item.)
ACTION: (T-10:29 AM) Approved with Yellow-Sheeted Additional Material, dated April 22, 2014, submitted at the request of Public Works Department. (Refer to minutes for full discussion.)
VOTE: 7-1. Commissioner Holness voted no. Commissioner Jacobs was not present.
B. MOTION TO AUTHORIZE County Administrator to take all administrative actions necessary to execute an amendment between Broward County and Henderson Behavioral Health, Inc., extending the lease term for an additional not-to-exceed 90 days in the event of any unanticipated closing delays. (Commission District 9)
(Commissioner Holness pulled this item.)
ACTION: (T-10:29 AM) Approved with Yellow-Sheeted Additional Material, dated April 22, 2014, submitted at the request of Public Works Department. (Refer to minutes for full discussion.)
VOTE: 7-1. Commissioner Holness voted no. Commissioner Jacobs was not present. |
PUBLIC WORKS DEPARTMENT/FACILITIES MANAGEMENT DIVISION/REAL PROPERTY SECTION AND HUMAN SERVICES DEPARTMENT/COMMUNITY PARTNERSHIPS DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
This item supports the Board of County Commissioners' Vision to "coordinate and maintain quality accessible health and human services in collaboration with public and private partners." The transfer of this health-care property contributes to County goals of providing behavioral health services to the vulnerable residents of Broward County.
The one acre property is identified by folio number 4942-29-04-0600, and includes a 11,269 square foot building that houses the Henderson Crisis Stabilization Unit (CSU). The legal description for the property is: NORTH WEST LAUDERDALE according to the Plat thereof, recorded in Plat Book 25, Page 25, Lot 27 less the south 5 feet & less the 25 foot radial arc tangent to a line 5 feet North of the south line of Lot 27 & tangent to the west line of Lot 27 & Lots 28 through 30, all less the south 5 feet, & Lot 31 the west 38 feet, less the south 5 feet, Block 2 of the Public Records of Broward County, Florida.
In 1992, under the Health and Public Safety Department-Mental Health Division, the County began leasing the facility from a private owner after renovating it specifically for crisis stabilization uses. In 1996, the County ceased operating the CSU when the Mental Health Division was dissolved; the operation of the CSU was transferred under a contract to the North Broward Hospital District. In 2002, Henderson Behavioral Health (Henderson) assumed the operation of the CSU under contracts with the County and the Department of Children and Families. The County continued to lease the facility from the private owner while maintaining licensure with the state until 2002. In 2002, the rental rate was approaching $300,000 per year due to 3% annual increases, and County staff determined that it would be more cost effective to purchase the building. The County acquired the property in 2002 for $1,232,250. Had the County continued to lease the Henderson clinic instead of purchasing the property in 2002, we would have paid $4,049,870 in rent payments from November 2002 to April 2014 assuming the same 3% annual increases. By purchasing the property the County realized a savings of $2,817,620 ($4,049,870 less $1,232,250) over the past 12 years. In 2007 an assessment of the condition of the facility estimated $595,572 in design and construction costs would be required to make necessary improvements and renovations to the building. Staff estimates that as of 2014, the total design and construction costs is $932,183 (this figure also includes project contingencies, allowances for construction escalation costs, fixed fixtures, security, technology and utilities not included in the 2007 estimate). Over the past three years, approximately $28,000 has been spent annually in property maintenance and repair.
Since 2002 Henderson leased the property for one-dollar per year and operated the CSU, which is a Baker Act Receiving Facility. The Crisis Stabilization Unit is a locked, secure facility licensed by the State of Florida, which has the ability to admit involuntary clients. Over the past two years, the County and Henderson have been negotiating new lease terms that included Henderson taking over the maintenance, insurance and operations costs, and they would reimburse the County for the capital improvements listed above. During the course of these negotiations Henderson staff felt that they would have a difficult time getting their Board to agree to improving a property they do not own, and the focus changed to the sale of the property to Henderson.
Motion A. The proposed Agreement conveys the property to Henderson for the purchase price of $1. In return, Henderson will execute and record a Declaration of Covenants and Restrictive (DCR) which restricts the use of the property to a crisis stabilization unit in accordance with Florida Statutes, Section 394.875 for as long as Henderson receives adequate funding from the State of Florida and/or Broward County. In the event adequate funding is not received, the Property shall be used to provide alternate behavioral health services. The DCR further provides that in the event the Property is sold, proceeds from the sale will be used to purchase an alternate site, subject to the approval of the County, and the use restrictions will attach to the new property. The DCR also provides that Henderson is committed to making certain improvements as set forth in the DCR to the property during the first four years after conveyance so long as it continues to hold title the property. If Henderson breaches any material provision of the DCR, it shall pay to the County $1,000,000, which is the agreed upon appraised value of the Property. This value shall be reduced 5% per year for the next 20 years for every year Henderson is not in breach of the terms of the DCR.
Motion B. The current lease between the County and Henderson terminates on April 30, 2014. While the County and Henderson will work diligently to Close and transfer ownership prior to termination, approval of the motion will allow the County Administrator to execute an extension in the event of any delays in Closing.
Sources of additional information: Purvi A. Bhogaita, Director, Real Property, (954) 357-7333; Scott Campbell, Director Facilities Management Division, (954) 357-5590; Thomas J. Hutka, P.E., Director, Public Works Department, (954) 357-6410; Michael Elwell, Director, Human Services Department, (954) 357-6385; Mandy Wells, Director, Community Partnerships Division, (954) 357-8647. |
The appraised market value of the property as of November 8, 2013, is $1,000,000; whereas, the 2014 estimated assessed value for tax purposes established by the Broward County Property Appraiser’s Office, is $1,146,160, and the 2013 assessed value was also $1,146,160.
The costs to carry this asset have been increasing annually, and the facility needs updating, including Americans with Disabilities Act upgrades. Sale of the property will result in a cost savings and reduction of any potential liability to the County, in addition to allowing Henderson to renovate the property to suit their operational needs. |