Title
MOTION TO ADOPT PROPOSED RESOLUTION 2023-R-12
A RESOLUTION OF THE CITY COMMISSION OF THE PEMBROKE PINES, FLORIDA, APPROVING AND AUTHORIZING THE PURCHASE OF APPROXIMATELY 3.923 ACRES OF REAL PROPERTY FROM VD HOMESTEAD LLC, GENERALLY LOCATED SOUTH OF PINES BOULEVARD AND WEST OF SOUTHWEST 196TH AVENUE, SUBJECT TO THE TERMS AND CONDITIONS AS SET FORTH IN THE PURCHASE AND SALE AGREEMENT, ATTACHED HERETO AS EXHIBIT “A” AND INCORPORATED HEREIN BY REFERENCE; AUTHORIZING AND DIRECTING THE PROPER CITY OFFICIALS TO TAKE ANY AND ALL ACTION NECESSARY TO EFFECTUATE THE INTENT OF THIS RESOLUTION AND TO EFFECTUATE THE ACQUISITION OF SUCH REAL PROPERTY IN ACCORDANCE WITH THE TERMS OF THE PURCHASE AND SALE AGREEMENT AND ANY AMENDMENTS THERETO; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. At the September 7, 2022 City Commission meeting, the Commission voted unanimously to direct city staff to attempt to purchase the VD Homestead (FKA Borluv) parcel and adjacent parcel for preservation, open space or park use (minutes attached).
2. Based on that direction from Commission, the City of Pembroke Pines seeks to acquire +/- 3.923 acres (170,898 square feet) of land generally located at east of 196th avenue and south of Pines Boulevard know as the VD Homestead parcel.
3. The subject parcel is adjacent to SW 196th Avenue and is south of the Estancia wetlands, north of the Encantada wetlands and west of the Perez parcel.
4. The City negotiated an Agreement for Purchase and Sale for the parcel (Exhibit A) and has attached the agreement as well as related documents to this agenda item.
5. Per City Charter section 8.08 (b) the City Commission may acquire property within or outside the corporate limits of the City for any municipal purpose, in fee simple or any lesser interest or estate, by purchase, provided such amount of expenditure for real property shall not exceed twenty-five (25%) percent of the current annual fiscal budget of the City.
6. The City has agreed to amend the purchase price for the property to $3,900,000, subject to the terms and conditions set forth in the agreement (revised agreement, exhibit A, to placed on the dais). The purchase includes offside mitigation credits allocated for the subject property. In addition, the seller obtained permits to clear the property and has removed invasive vegetation.
7. The City negotiated the initial purchase price of $4,120,000 for the parcel based on an opinion of value that it received from one of the appraisers (Autrey) in late 2022. The appraiser stated that the value of the property fell within the following range: $3,580,000 to $4,000,000.
8. Subsequently, the City has obtained two full appraisals (excerpts are included with revised agenda item), with the following values:
Vance: $3,760,000
Autrey: $3,590,000
9. The proposed purchase price exceeds the appraised value, nonetheless the City Commission has the authority to authorize the purchase via adoption of the resolution.
10. Prior to closing, the City will obtain an updated survey and perform required due diligence as noted in the attached agreement. All items will be ordered upon approval of proposed resolution 2023-R-12.
11. Administration, recommends adoption of proposed Resolution No. 2023-R-12 authorizing the purchase of +/- 3.923 acres of real property.
Item has been reviewed by the Commission Auditor and approved for the Agenda.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $3,900,000
b) Amount budgeted for this item in Account No: New accounts will be created and funded upon City Commission approval of the Budget Amendment.
c) Source of funding for difference, if not fully budgeted: This item was not budgeted. Therefore a budget adjustment will be made to increase the budget for land; using Fund Balance.
d) 5 year projection of the operational cost of the project: Not applicable
e) Detail of additional staff requirements: Not applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.