Approve Sale of Surplus Lands Chito Branch Reserve (Chito North), SWF Parcel No S
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1 Operations, Lands and Resource Monitoring Committee May 23, 2017 Discussion Agenda Approve Sale of Surplus Lands Chito Branch Reserve (Chito North), SWF Parcel No S Purpose The District received an offer to purchase SWF Parcel No S, known as surplus parcel Chito North, from GLH Enterprises, LLLP, for $2,295,000. This reflects an offer price of $25, per acre for approximately acres. The Contract for Sale and Purchase is attached as Exhibit 1. A general location map and aerial map are attached as Exhibits 2 and 3. This parcel was declared surplus by the Governing Board on June 25, Background The District acquired Chito North in 2001 with Preservation 2000 funds and as part of the C. W. Bill Young Reservoir, now known as the Chito Branch Reserve. The parcel was acquired through proceedings in eminent domain and a funding partnership with Tampa Bay Water (TBW). The prorated acquisition cost was $6,769 per acre for 2,142 acres. As part of the reservoir project, the District conveyed a Perpetual Non-Exclusive Easement to TBW necessary to fulfill its obligations in relation to obtaining a Florida Department of Environmental Protection (FDEP) Environmental Resource Permit (ERP) and a Mitigation Agreement with the Environmental Protection Commission (EPC) of Hillsborough County. An Interlocal Agreement was executed between the District and TBW to provide for TBW s application to the FDEP for modification of the ERP and application to the EPC for release from the Mitigation Agreement for the boundary of the surplus parcels within the Chito Branch Reserve. The Agreement provides for TBW s release of its easement over the parcel at the closing. Release of TBW easement interests and mitigation requirements allow the District to transfer this Chito North parcel without the restrictions these obligations entail. Twenty-eight percent of the sale proceeds, which represents TBW s interest in the original acquisition, will be paid to TBW for the release of their interests. Chito North consists of approximately acres, which are 100 percent upland. The parcel has frontage on and access from Lithia Pinecrest Road. The property is zoned AR, Agricultural Rural, with a future land use designation of R-1, Residential 1 with Significant Wildlife Habitat Overlay. The average cost for the District to manage the Chito Branch Reserve over the last five years was $7.76 per acre. Based on $7.76 per acre, the District s cost to manage Chito North is $693 per year. The property was listed with Saunders Real Estate on October 24, 2016 and was advertised through multiple media and personal contacts for at least 30 days before the offer was presented. Three offers were received on this parcel and as a result the broker and District staff requested a final and best offer from all parties. The process resulted in an offer of $2,295,000 Below is a summary of the total and per acre cost information for the Chito North parcel.
2 Total Per Acre Offer Amount $2,295,000 $25,680 Appraised Value $1,520,000 $17,008 Listing Price $1,790,000 $20,029 Property Appraiser Just Value $1,066,822 $11,937 Purchase Basis (2001) $604,979 $6,769 Appraisal and Minimum Price The property was appraised January 26, 2017 for $1,520,000 by Bradley C. Page, MAI, IFA with Valuation Advisors. A summary of comparable values used to calculate the final value is attached as Exhibit 4. The appraiser determined that the highest and best use as vacant, would be for residential development. The market value of the property determined in the appraisal is based on the title being free and clear of interests and encumbrances that impact value. The District s title to the property includes the subsurface rights. Upon the request of a buyer and in accordance with Section (3), Florida Statutes the District may release its interest in all phosphate, minerals, metals and petroleum that may be in, on or under the property. The full appraisal is available upon request. A minimum price was not set for this parcel by the Governing Board as provided for in Policy Sale Terms The District will deliver title to the buyer by Quit Claim Deed. There will be no adjustment in price for actual acreage as determined by a survey, if obtained by the buyer. The buyer will bear all expenses of the transaction except for the appraisal and advertising costs. Benefits/Costs Funds derived from the sale of surplus land may only be used for the purchase of other lands meeting the criteria in Section , Florida Statutes, resulting in more effectively meeting the District s core mission. Staff Recommendation: See Exhibits Accept the offer; Approve the Contract for Sale and Purchase and authorize the Executive Director or designee to sign on the behalf of the District; Upon the request of the buyer authorize the conveyance of the District s interest in all phosphate, minerals, metals and petroleum in or on or under the land; and Authorize staff to execute any other documents necessary to complete the transaction in accordance with the approved terms. Presenter: Carmen Sanders, Operations and Land Management Assistant Bureau Chief cc: Ken Frink Jerry Mallams Cheryl Hill Myke Morris Will VanGelder
3 Exhibit 1
4 Exhibit 1
5 Exhibit 1
6 Exhibit 1
7 Exhibit 1
8 Exhibit 2 Chito Branch Reserve SWF Parcel No S (Surplus ID Chito North) SWF Parcel Nos S SWFWMD Easement SWFWMD Fee Acquisition Other Conservation Lands SWF Parcel No S Chito North Miles Service Layer Credits: Sources: Esri, HERE, DeLorme, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo,
9 BRYANT RD BRYANT RD BROOKSNEST CT BROOKSNEST CT Exhibit 3 CHITO BRANCH RESERVE SWF PARCEL NO (SURPLUS ID CHITO NORTH) SWF PARCEL NO S DISTRICT FEE OWNERSHIP JOHNNY DAVIS TRL LITHIA ESTATES DR LITHIA PINECREST RD MARY MARY ROSE ROSE WAY WAY CLOVERLEAF DR SPRINGSONG RD DORMAN RD HAWK TALON DR GUN DOG WAY RED BIRD LN ,000 Feet Date: 5/16/2017 Service Layer Credits: Source: Esri, DigitalGlobe, GeoEye, i-cubed, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GIS User Community
10 EXHIBIT 4 Summary of Comparable Sales The average price per acre for the comparable sales after adjustment is $17,075
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