A. MOTION TO APPROVE Contract for Sale and Purchase between Broward County and Florida Department of Agriculture and Consumer Services in the amount of $3,712,872 ($4,217,500 sale price less $504,628 for three-year lease payments) to acquire 5.87 acres of land and buildings located at 3400-3450 SE 18 Avenue, Hollywood, Florida; authorize Real Property Section to acquire this property using Port Everglades funds; authorize the County Administrator to execute any documents necessary to accept the conveyance of real property to the County to the extent such documents are approved by the County Attorney's Office; and authorize acceptance and recordation of Deed. (Commission District 7)
ACTION: (T-10:23 AM) Approved.
VOTE: 9-0.
B. MOTION TO APPROVE Lease Agreement between Broward County and Florida Department of Agriculture and Consumer Services for an office building and adjacent land located at 3450 SE 18 Avenue, Hollywood, Florida, for three years (with lease payments of $504,628 paid in advance by deducting them from the purchase price); with occupancy commencing on the date of the purchase and terminating three years later, unless Florida Department of Agriculture and Consumer Services exercises a month-to-month lease option for up to 24 additional months, at the same rate and terms; and authorizing Mayor and Clerk to execute the Lease Agreement. (Commission District 7)
ACTION: (T-10:23 AM) Approved.
VOTE: 9-0.
C. MOTION TO ADOPT budget Resolution No. 2014-337 transferring $3,742,872 from 4700 - Port Everglades Operating Fund Reserve to 4710 - Port Everglades Capital Fund for the purpose of providing funds to acquire 5.87 acres of land and building located at 3400-3450 SE 18 Avenue, Hollywood, Florida. (Commission District 7)
ACTION: (T-10:23 AM) Approved.
VOTE: 9-0.
D. MOTION TO ADOPT unanticipated revenue Resolution No. 2014-338 in the amount of $3,742,872 within 4710 - Port Everglades Capital Fund to recognize funds to acquire 5.87 acres of land and building located at 3400-3450 SE 18 Avenue, Hollywood, Florida. (Commission District 7)
ACTION: (T-10:23 AM) Approved.
VOTE: 9-0. |
PUBLIC WORKS DEPARTMENT/FACILITIES MANAGEMENT DIVISION/REAL PROPERTY SECTION AND THE PORT EVERGLADES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
This item supports the Broward County Board of County Commissioners Vision and Goals for “unlimited economic opportunities” to increase the economic strength and impact of Port Everglades in a sustainable manner balancing economy, environment and community needs.
Port Everglades staff was contacted by staff from the Florida Department of Agriculture and Consumer Services (FDACS) in February 2014 indicating the land owned by the FDACS on the Port was available for purchase without going through a public surplus process. The land is strategically located immediately adjacent to the south of the Port’s Administration Building. The 5.87 acre property consists of two adjacent parcels owned by FDACS, with tax folio numbers 5042-23-12-0010 for the eastern parcel and 5042-23-00-0673 for the western parcel. The eastern parcel consists of 2.30 acres located at 3400 S.E. 18 Avenue and has an 11,536 square foot, one story concrete block and metal warehouse building along with a floating dock that fronts the Florida Power and Light discharge canal with direct access to the Intracoastal Waterway. The western parcel consists of 3.57 acres located at 3450 S.E. 18 Avenue and has a 9,791 square foot, one story concrete block and stucco office and laboratory building and associated parking. The two buildings combined equate to approximately 21, 327 square feet on the 5.87 acres of land.
The site is zoned Port Everglades Development District by the City of Hollywood, with a Transportation Land Use Plan designation by Broward County. The owner of the properties, FDACS, currently leases the eastern portion of the property to the Florida Fish and Wildlife Conservation Commission (FWC), previously known as the Florida Department of Natural Resources, Division of Law Enforcement, at no cost to the FWC. The Port recognizes the contributions of the FWC to the Broward community and would like to see them maintain their operations on the eastern portion of the property. The FWC will continue to occupy their warehouse and dock facility under their existing no-cost lease terms; however Port staff will separately negotiate with the FWC for a new long-term lease.
Negotiations were held with County staff and FDACS and concluded that the FDACS would be able to remain in occupancy of their building on the western portion of the property for three years at a market rate to allow them time to identify and relocate to a new facility.
The State’s appraisal on the property was $4,345,000 as of November 26, 2013 by S. E Holden, Inc. and the County’s appraisal was $4,090,000 as of April 11, 2014 by Scott Watson, MAI for an average of $4,217,500. The average of the two appraisals was the agreed upon purchase price. Additional negotiations ensued to agree upon a rental rate of $17.18 per square foot for the 9,791-square-foot FDACS office building and lab, which is $504,628 for the three-year lease for FDACS’ building rent. This is based on the State of Florida’s current office rental rate. The gross sales price of $4,217,500 has been reduced by the value of the three year’s rent for the FDACS space to arrive at the net sales price of $3,712,872.
The 2014 property assessment for tax purposes established by Broward County Property Appraiser’s Office is a combined $3,548,100 ($1,755,670 for the eastern parcel and $1,792,430 for the western parcel), with no real estate taxes assessed to this State agency. There have been no real estate transactions involving the property in the past five years.
The Port intends to use the property in the near term for parking for both cruise shore staff and for staging of taxi cabs. As the cruise ships have increased in size, so have the amount of shore staff requiring parking. The new property will provide the additional parking capacity necessary to avoid additional shuttle costs that would be needed for an alternate site. The previous taxi cab staging area was lost to the Mangrove Enhancement Area Project just south of the property to be purchased.
An environmental assessment of the properties is currently under way, with the Contract for Purchase and Sale providing the ability to terminate the contract should the property be contaminated.
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; Alan Hill, Director, Business Administration Division, (954) 468-3501; Steve Cernak, Director, Port Everglades Department, (954) 468-3516. |
The source of funds for this acquisition are located within the Port Everglades Capital Fund (4710). In addition to the purchase price of $3,712,872, normal and customary closing costs will be incurred, and may include an environmental assessment, a survey, title insurance, costs for a title closing and other typical closing costs anticipated not to exceed $30,000. |