COST/FUNDING SOURCE: Potential future Income of approximately $300,000
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1 AGENDA ITEM C6 DATE: June 1, 2015 TO: FROM: SUBJECT: Matt Jordan, General Manager Charles H. Carden, Chief Operating Officer Real Property Disposition-Agreement between Tampa Bay Water and the Southwest Florida Water Management District for the Chito Branch Surplus Property- Approve SUMMARY: An agreement between Tampa Bay Water and the Southwest Water Management District has been negotiated for revenue sharing if the District sells the surplus Chito Branch parcels (North and East). RECOMMENDATION: Execute the agreement document as presented with attachments. COST/FUNDING SOURCE: Potential future Income of approximately $300,000 BACKGROUND: The North and East parcels are a portion of the overall 5,229 acres of land that make up the Reservoir project site for which Tampa Bay Water paid 28% of the cost. The property is owned by the Southwest Florida Water Management District and encumbered by three easements in favor of Tampa Bay Water. Tampa Bay Water s Perpetual Non-Exclusive Easement includes the North and East parcels. In 2014 the SWFWMD Board approved to declare these parcels surplus property. The North parcel fronts on Lithia Pinecrest Road (see attached sketch) and contains 88.8 acres. The East parcel fronts on County Road 39 (see attached sketch) and contains 37.8 acres. In May 2014, an appraisal was prepared for both parcels. It was estimated at that time the market value of the North parcel was $799,200 and the East parcel was valued at $378,000. These values are based on release of Tampa Bay Water s Non-Exclusive Easement and its associated regulatory permit requirements, which would be released upon the sale closing of the parcels. In the attached agreement Tampa Bay Water agrees to apply to for a modification of the Environmental Resources Permit (ERP) as it pertains to the surplus parcels and to apply for a release of the Mitigation Agreement. T:\Board Folders\Board Agenda\Water Production\C6 Chito Branch Surplus Property Board Agenda Item
2 Matt Jordan June 1, 2015 Page 2 The District agrees that at the closing of a sale of the surplus parcels and delivery of the instruments and proof of the modification of the ERP, the District will pay TBW an amount equal to 28% of the gross proceeds from the sale of either the surplus parcel sold or both surplus parcels if surplus parcels are sold together. Attachments T:\Board Folders\Board Agenda\Water Production\C6 Chito Branch Surplus Property Board Agenda Item
3 AGREEMENT BETWEEN TAMPA BAY WATER AND THE SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT CHITO BRANCH SURPLUS PROPERTY THIS AGREEMENT ( Agreement ) made and entered into on the th day of, 2015 by and between the Southwest Florida Water Management District, a public corporation of the State of Florida, having an address of 2379 Broad Street, Brooksville, Florida ( District ), and Tampa Bay Water, a Regional Water Supply Authority, an interlocal governmental entity of the State of Florida, having an address of 2575 Enterprise Road, Clearwater, Florida, ( TBW ), as follows: WITNESSETH WHEREAS, the District owns a tract of land located in Hillsborough County, Florida, known as the Chito Branch Property; and WHEREAS, the District has declared two parcels within the Chito Branch Property, more particularly described in Exhibit A attached hereto, surplus (Surplus Parcels A and B) and desires to sell the parcels for the highest possible price obtainable; and WHEREAS, TBW holds an easement interest in the Chito Branch Property pursuant to the Perpetual Non-Exclusive Easement executed October 31, 2001 and recorded January 7, 2002in the Official Records of Hillsborough County (the Easement ); and WHEREAS, the Chito Branch Property is also subject to the requirements of Florida Department of Environmental Protection ( FDEP )
4 Environmental Resource Permit number (the ERP ), as modified, as part of the mitigation for the C.W. Bill Young Reservoir; and WHEREAS, the Chito Branch Property is also subject to a Mitigation Agreement between TBW and the Environmental Protection Commission of Hillsborough County ( EPC ) recorded March 21, 2002 in the Official Records of Hillsborough County (the Mitigation Agreement ); and WHEREAS, the value of Surplus Parcels A and B is expected to increase if they are unencumbered by TBW s easement interests, the Mitigation Agreement, and the ERP; and WHEREAS, TBW is agreeable to releasing its easement interests, to seeking a release of its obligations under the Mitigation Agreement with the EPC and to seeking a release of its obligations under the ERP as they pertain to Surplus Parcels A and B, under the terms and conditions described herein. NOW THEREFORE, for and in consideration of the premises and the sum of Ten Dollars ($10.00) and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereby agree as follows: 1. Effective Date: This Agreement will be effective upon the date of the last of the parties to sign (the Effective Date ). 2. Term: This Agreement will remain in effect for a term of five (5) years from the Effective Date unless earlier terminated by the sale of Surplus Parcels A and B, or pursuant to paragraph 6 below. 3. Encumbrances: a. TBW agrees to apply to the FDEP for a modification of the ERP as it pertains to Surplus Parcels A and B, and to apply to the EPC for a
5 release of the Mitigation Agreement recorded in the Official Records of Hillsborough County at Official Records Book 11508, Page 1450 as it pertains to Surplus Parcels A and B, within one hundred eighty days of the Effective Date of this Agreement. b. TBW agrees that at the closing of a sale of Surplus Parcel A or B, or both if they are sold together, TBW will deliver to the District a release of the Easement recorded in the Official Records of Hillsborough County at Official Records Book 11336, Page 0366 as it pertains to the surplus parcel(s) sold, a release of the Mitigation Agreement recorded in the Official Records of Hillsborough County at Official Records Book 11508, Page 1450 as it pertains to the surplus parcel(s) sold, and a copy of the modified ERP, if TBW has been able to obtain approval of the actions described in paragraph 3.a. above. 4. Payment: The District agrees that at the closing of a sale of Surplus Parcel A or B, or both if they are sold together, and delivery of the instruments and proof of the modification of the ERP as required by paragraph 3.b. above, the District will cause its closing agent to pay TBW an amount equal to 28% of the gross proceeds from the sale of either the surplus parcel sold or both surplus parcels if Surplus Parcel A and B are sold together. 5. Closing: The closing of any sale of one or both of the surplus parcels will occur at the time and place designated pursuant to the terms of the Purchase and Sale Agreement entered into by the District and the prospective Buyer. 6. Termination: If TBW fails to perform in accordance with the provisions of paragraph 3 above, this Agreement will terminate and TBW and the District are released from all further obligations hereunder.
6 7. Entire Agreement: This Agreement and the attached exhibits constitute the entire agreement between the parties and, unless otherwise provided herein, may be amended only in writing signed by all parties to this Agreement. 8. Notice: Any notice which must or may be given under this Agreement or by law will be in writing and will be deemed to have been given when delivered by personal delivery or when deposited in the United States mail, certified, return receipt requested, full postage prepaid to District or to TBW at the addresses set forth above. 9. Severability: Should any section or any part of any section of this Agreement be rendered void, invalid, or unenforceable by any court of law, for any reason, such determination will not render void, invalid or unenforceable any other section or any part of any section of this Agreement. 10. Assignment: Except as otherwise provided in this Agreement, no party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other party. Any attempted assignment in violation of this provision is void. 11. Third Party Beneficiaries: Nothing in this Agreement shall be construed to benefit any person or entity not a party to this Agreement. 12. Governing Law: This Agreement will be construed and enforced in accordance with the laws of the State of Florida. Venue shall be in Hernando County. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above.
7 [The Rest of the Page Intentionally Left Blank] SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT By: Name: Title:
8 ATTEST: Authority Matthew Jordan, Secretary TAMPA BAY WATER, A Regional Water Supply By:, Chairman Date: Approved as to Form: Office of General Counsel
9
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