Resolution 17-R15 authorizing the sale of 505 N 7th Street. 

Staff seeks the City Commission's approval for the sale of 505 N 7th Street. This property was identified as surplus property on August 15, 2016 by the City Commission through Resolution 16-R38.  The property has been marketed and several offers were received.   In late 2016, the City Commission reviewed an offer from the Salvation Army to purchase the building and have homeless services in a jail diversion program. The City Commission turned down that proposal for a variety of reasons.  The property appraiser indicates this property has an Assessed Value of $202,180, an independent appraisal supports the value as $200,000.

• A team comprised of the Communications Manager, the IT Manager, the Urban Redevelopment Manager, the City Clerk and the Planning Director met to review and rank the four proposals.  The scored results are as follows:
• Kids Academy, LLC  51.45
• Montague Innis Welding Institute 24.4
• Aegeus Inspired Living  19.9
• 111 Okeechobee LLC   6.05

Staff reached a consensus that none of the proposals offered a fair price. The Kids Academy, LLC offer ranked the highest of the proposals.  The Kids Academy offer did score most favorably with the Committee as the Use proposed was compatible with the existing neighborhood and had the most extensive timeframe and proposed renovations.  Appraised at $200,000 most offers were significantly less than that, including Kids Academy offering  $50,000 representing just 25% of the appraised value.  

 

Reject all offers.

 

If the City Commission wishes to consider an alternative motion, Staff recommends that the City Commission authorize City Staff (City Manager or his designee) to renegotiate a sale price that is closer to appraised value for the highest ranked proposal, Kids Academy LLC.   Any amended/offered price would be brought back to the City Commission for final action and approval via the attached Resolution (Resolution17-R15) at a future meeting. 

Commission provide direction and guidance on alternate direction.

Rebecca Grohall, AICP 

Linda Cox, City Clerk
Devoshay Johnson, IT Manager
Libby Woodruff, Urban Redevelopment Manager
Shyanne Helms, Communications Director
Nicholas Mimms, PE, City Manager