COUNCIL AGENDA ITEM
SUBJECT:
title
Sale of Surplus Real Property - 401 Timaquan Trail
body
DEPARTMENT:
Administration
SUMMARY:
The City of Edgewater owns certain real property located at the extreme north end of Timaquan Trail in the Industrial Park. The Volusia County Property Appraiser lists its physical address as 401 Timaquan Trail. It is a remnant parcel and created from the original plat and is too small to construct anything.
A while back staff was approached by a developer interested in purchasing the lot south of and contiguous to this remnant. He asked whether the City would be interested in selling the remnant. His intent was/is to combine the two properties into one larger parcel. Seeing the City’s property as unusable for public purpose, staff requested Council declare it as surplus, order an appraisal and advertise it for bids for sale to interested parties. All of this has been accomplished and there was one responsible bidder - the soon to be property owner to the south, Edge Realty Investments for the amount of $25,000.
The City property is 36,046 square feet in size or 0.8275 acres and appraised at $35,200, which equates to approximately $47,045.32 per acre. The Edge Realty Investment Company has escrowed the sum of $2,500 or 10% of the bid amount by check and the City holds these funds.
While the bid amount is short of the appraised value by $10,200, staff believes the bid should be accepted for the following reasons: 1) the property cannot be developed unto itself because of its size and buffer requirements within the industrial park; 2) if Edge Investment Company combines this property with the contiguous parcel it is in the process of purchasing, the value of both should increase thus increasing taxable value. It is the intent of Edge Investment Company to expand its current operation of RV and boat storage at 403 Timaquan Trail and ownership of the remnant parcel will allow it to maximize this plan.
NOTES:
1. The Barnett Group will prepare the sales contract,
2. A map of the parcel in general is included for review,
3. Closing costs are estimated to be $915.75,
4. Net to City at closing is estimated to be $24,084.25,
5. Contract for sale and a ‘Net Sheet’ are included for review,
6. Original letter of interest/bid are included for review
7. Appraisal Report is included for review.
BUDGETED ITEM: ☐ Yes ☐ No ☒ Not Applicable
BUDGET AMENDMENT REQUIRED: ☐ Yes ☐ No ☒ Not Applicable
RECOMMENDED ACTION:
Direct the City Manager to contract for sale the real property located at 401 Timaquan Trail to Edge Realty Advisors for the sum of $25,000.