City Commission Workshop Meeting

APPROVED: 12/18/2014 City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis, FL 32727-0068 Meeting Minutes - Final* City Commission Workshop Thursday, December 4, 2014 7:00PM City Hall CALL TO ORDER: Mayor Bob ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 5 - Linda Bob; Albert Eckian; Michael Holland ; Karen LeHeup-Smith ; and Kress Muenzmay I. Workshop Item 14283 Consideration of the Purchase of Sharp's Mobile Home Park Tom Carrino, Economic Development Director, noted the presence of Steve Triece, who assisted the City with the evaluation of the property, and Don Oliver, representing the property owner. Mr. Carrino provided a history of the City's consideration of the property and the direction by the Commission to obtain new appraisals of the property. He reviewed the alternatives identified by Mr. Triece as follows: 1) Offer a higher purchase price of $2,750,000 with the seller to relocate the residents; 2) Offer a lower purchase price of $1 ,580,000 with the City to relocate the residents; and 3) Facilitating the sale of the property to a third party by incentivizing redevelopment and/or assisting with site prep or infrastructure. He discussed some considerations including the following: 1) Is Alternate 1 or 2 acceptable to the sellers; 2) resident relocation; and 3) what is the redevelopment potential of the site and the physical site conditions. He cited a geotechnical map showing issues with the soil conditions and noted the difficulty in quantifying without a specific site proposal. He stated staff's recommendation to have the City work with the property owners and their real estate agent to market the site and provide incentives for redevelopment. II. Commission Discussion Vice Mayor Eckian commented on the benefit to the City by Sharp's Park and its residents. He expressed concern regarding relocating those residents without a definite plan for the site. He cited the need to encourage people to live in the downtown area and the financial/ass to the City if the Sharp's Park residents leave the City. He commented on the existence of muck on the site to depths of 50 and 70 feet. He discussed the appraisals and stated that the current highest and best use of the property is as a mobile home park. He commented on the lack of demand in the City for additional commercial space and the number of other capital needs. He indicated that if the City is involved in marketing the property then it would be obligated to disclose all of the information obtained regarding the site. Commissioner Muenzmay commented on the probability that the residents of Sharp's Park do not provide a significant amount of revenue to the City businesses. He stated his opinion that the highest and best use of the property is probably for public use as a park or similar use. He noted the apparent lack of re-investment in the property by the Sharps. He suggested that the City offer a small amount for a right of first refusal in order to protect the City from something objectionable being placed there in the future. He also suggested that the City could begin setting funding aside for the future purchase of the property in the event the park closes. He stated that the only alternative he would support was alternative three. Commissioner Holland noted his previous opposition to purchasing the property. He stated the City does not have the funds to purchase the property out right and noted other capital needs in the City including street improvements. He expressed support for obtaining a right of first refusal. He concluded stating his support for alternative three. City of Eustis, Florida Page 1 Printed on 1211212014 City Commission Workshop Meeting Minutes - Final December 4, 2014 Commissioner LeHeup-Smith expressed support for purchasing the property and cited the waterfront master plan. She commented on the possibility of purchasing the park and running it as a mobile home park until the City is able to close it. Of the three alternatives, she selected alternative two. Mayor Bob commented on the number of capital needs in the City. She cited the need to resolve all the lawsuits before the City can attract any new development. She noted the City's inability to retain the hospital. She stated her support for alternative three and indicated that four of the five Commissioners had also expressed support for alternative three. III. Public Input- None IV. Commission Direction Derek Schroth, City Attorney, noted that the seller may not want the City involved with marketing the property due to the need to disclose information. The Commission discussed the City's previous offer to purchase a right of first refusal. It was noted that the problem with that is a potential buyer knows they are actually bidding against another interested party. They also discussed the need to determine if the City has any future interest in the property and possibly having staff look at the issue each year. Dianne Kramer, Acting City Manager, asked Steve Triece to address the Commission regarding a right of first refusal. Steve Triece, Triece Co., reviewed his experience with CRA projects and other cities. He explained the problem with a right of first refusal stating the holder of the right has to notify the public they have that right and it has to be recorded. He noted that in the future they may not be dealing with the same owner due to death. He stated that anyone who develops that property will have to follow the City's codes. He added that anyone interested in the property will do their due diligence and investigate the City's codes which will put the City on notice that someone else is interested in the property and what they intend to do with the property. He stated that the City will be able to negotiate with any interested purchaser on what they will allow on the site. He agreed with the use of the property as a public park. He stated his belief that the park will not go out of business in the near future. He commented on the short term value of appraisals. Mayor Bob opened the floor to public comment at 8:14p.m. No one came forward at that time. The Commission further discussed the City's interest in the property, the need to maintain its interest in the property, and the probability that the City would be aware of any outside interest in the property due to an interested developer having to research with the City what would be permitted on the site. Mr. Carrino assured the Commission that it is the job of economic development to stay engaged with property owners and keep an eye on what is happening in the community. V. Adjournment-8:17p.m. LINDA DURHAM BOB City C lerk Mayor/Commissioner *These minutes reflect the actions taken and portions of the discussion during the meeting. To review the entire discussion concerning any agenda item, go to www.eustis.org and click on the video for the meeting in question. A DVD of the entire meeting or CD of the entire audio recording or verbatim transcript of the meeting can be obtained from the office of the City Clerk for a fee. City of Eustis, Florida Page2 Printed on 1211212014