COUNCIL AGENDA ITEM
SUBJECT:
title
Sale of Surplus Real Property - 503 Booker Street
body
DEPARTMENT:
Administration
SUMMARY:
The City of Edgewater owns certain real property located at 503 Booker Street off of US 1 South. The property is contiguous to a parcel owned by the City of Edgewater which has a potable water booster station constructed upon it.
Recently staff was approached by a developer interested in purchasing the 2.2 acres of the entire 16.61 acres owned by the City of Edgewater. He currently owns parcel(s) north of Booker Street east of the City’s property and wants to combine all to construct enclosed vehicle storage. Staff has researched the developer’s request and believes it would be beneficial to return it to the tax rolls. Staff requested Council declare this part of the entire parcel 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 developer who showed interest in purchasing the property - Alan D. Klein for the amount of $18,500.
The property appraised at $46,500, which equates to $18,400 per acre. Mr. Klein has escrowed the sum of $1,850 or 10% of the bid amount by check and the City holds these funds.
The bid amount is short of the appraised value by $21,100 and staff believes it to be too low. Mr. Klein is represented by the Storch Law Firm and staff contacted Mr. Storch to explain our position. Mr. Storch contacted and re-explained the issue to Mr. Klein at which time he agreed to increase his bid to $37,000. While this amount is still short of the appraised value by $9,500, staff believes this is more in line and acceptable given the property will be back on the tax rolls and once improved will bring more tax dollars to the City of Edgewater.
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 $1,68.75,
4. Net to City at closing is estimated to be $35,931.25,
5. Contract for sale and a ‘Net Sheet’ are included for review,
6. City purchased all 16.61 acres during 2002 for $289,390.66 or $17, 422.68 per acre,
7. Original letter of interest/bid and revised letter of interest/bid are included for review,
8. 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 503 Booker Street to Alan D. Klein for the sum of $37,000.