Agenda Item Name:
Title
Fellowship Baptist Church Acquisition-Whether to Exercise of Option to purchase
End
Presenter:
Ramon D. Gavarrete, P.E. and Claudia Tuck, LCSW
Description:
Board consideration of the exercise of the County’s option contained in the Option Contract to purchase the Fellowship Baptist Church in High Springs, Florida.
Recommended Action:
Recommended Action
That the Board approve a motion to NOT exercise its option to purchase the Fellowship Baptist Church property.
End
Prior Board Motions:
On March 2, 2021, the Board instructed the County Manager and staff to enter into an Option Contract with Seller, perform due diligence on the option property and report to the Board for direction.
On May 25, 2021, the Board instructed staff to negotiate the Purchase Price with Seller to reflect the information contained in the appraisal reports and the inspection reports.
Fiscal Consideration:
Fiscal Consideration
The Purchase Price of the property and improvements is $3,300,000.00.
The estimated cost of repairs or renovations to the property that are either required by code, present a potential safety concern, or would represent a potentially greater maintenance cost if left uncorrected is $432,100.00. The estimated cost of repairs or renovations that may not prevent occupancy by the County if deferred, but would likely be required in the near future is $94,500.00. Minor repairs and soft costs such as design fees, permits, etc. are not included in these estimates.
These estimates do not include the cost of any renovations or conversions triggered by the change in use of the property from a church to County use and offices, nor specific requirements of the end users/occupants of the buildings.
If Board decides to move forward with purchase and estimated repairs, funding would come from General Fund Appropriated Reserves account: 001.04.0440.590.99.20. There is currently $4,790,264 in reserves with purchase, repairs and operational cost of $3,950,878 leaving only $839,386 in General Fund Appropriated Reserves.
Budgeted Reserve for Contingency
A. Reserve for contingency requests in the General Fund, MSTU Law Enforcement and MSBU Fire Funds must be approved by the Board of County Commissioners. The Board will use the procedures and evaluation criteria set forth in this, and other policies. Such requests will be evaluated as to the:
I. Urgency of the request
II. Scope of services to be provided
III. Short and long-term fiscal impact of the request
IV. Potential for alternative methods of funding or providing the service(s)
V. Review for duplication of service(s) with other agencies
VI. Review of efforts to secure non-County funding
VII. Discussion of why funding was not sought during the normal budget cycle
VIII. Review of the impact of not funding or delaying funding to the next fiscal year.
001.04.0490.519.62.00 $3,300,000
001.04.0490.519.63.98 $526,600
001.04.0490.519.31.00 $104,100 (Already included in the amended budget from board meeting March 2, 2021)
Operating Budget for 4 Months
001.29.2900.564.34.00 $9,636
001.29.2900.564.52.00 $9,908
001.29.2900.564.12.10 $33,341 (2 new FTE’s)
001.29.2900.564.46.00 $58,028
001.29.2900.564.43.00 $13,365
Total $124,278
Operating Budget for FY22 fiscal year $376,598
End
Background:
The Fellowship Baptist Church is located at 16916 NW US Highway 441, High Springs, FL 32643, within the High Springs city limits. It consists of approximately 35,000 square feet of improved space on 20.38 acres, of which 9.682 acres will be conveyed to the County with the church buildings. The improved space includes three buildings and consists of approximately 25,000 square feet which could be converted to office/multi-use space and approximately 10,000 square feet of gymnasium with a commercial kitchen.
On March 2, 2021 the Board voted 5-0 to approve the investigation of the purchase of the Fellowship Baptist Church and authorized appraisals, inspection reports and general due diligence on the property. On March 16, 2021 Alachua County entered into an Option Contract with A to Z Enterprises, LLC for the purchase of the Fellowship Baptist Church. Pursuant to the Option Contract, the County has to exclusive option to elect to purchase the property, provided that the BOCC notifies the Seller on or before June 14, 2021 that it has elected to purchase the property. On May 25, 2021 the Board was given the average of the two values contained in the appraisal reports and the estimated costs to repair the property contained in the inspection reports.
Following the May 25, 2021 Board meeting, staff contacted the Seller’s representative to request a reduction in the Purchase Price. Seller has not responded to the request and the Purchase Price remains $3,300,000.00. The appraised value of the property, minus the cost of the known repairs is $1,661,200.00.
As a part of this transaction, County staff has performed or contracted for a thorough due diligence inspection of the property. This includes:
• A Building Condition Assessment Report, dated May 20, 2021, compiled by Brame Heck Architects, Inc., with reports from Campbell Spellicy Engineering (Mechanical, Electrical, Plumbing and Fire Protection Systems Report); Sputo and Lammert Engineering, LLC (Structural Engineering Report); GSE Engineering & Consulting, Inc. (Phase I Environmental Site Assessment); and DRMP, Inc. (Site Report). The reports uncovered a number of issues and deferred maintenance, estimated to cost $526,600.00 over the next five years. Full copies of all reports are attached.
• Two independent MAI Appraisals. One prepared by Santangini Appraisals, Inc. reflecting a market value for the property of $2,270,000.00. The other appraisal was prepared by Florida Property Consultants Group reflecting a market value for the property of $2,105,600.00. The average of the two appraisals is $2,187,800.00. Copies of the two appraisals are attached.
• A Boundary and Topographical Survey of the property prepared by Charles R. Brecken, PSM, Alachua County Surveyor. A copy of the survey is attached.
Social service, health and behavioral health providers were contacted to assess interest in utilizing space. Positive responses of interest were received from the Alachua County Health Department, Partnership for Strong Families, Peaceful Paths and Meridian. Some of the respondents can contribute to the operational costs while one would require financial support to locate staff at the Northwest site. Copies of the responses are attached.
Additional entities that may be interested and other site uses include:
Annex Offices for Constitutional Officers
County Meeting Rooms and Classrooms
Recreational Facilities with Gymnasium
County Social Services
County Veteran Services
Food Pantry and Distribution Center
After School Programming
Computer Lab
Pursuant to the Option Contract, the BOCC has until June 14, 2021 to notify the Seller whether the County has elected to purchase the property. If the County does not notify the Seller by June 14, 2021, the Option Contract will automatically terminate and the Seller shall be entitled to keep the $1,000.00 Option Payment previously paid by the County. Based, in part, on the appraisals and other due diligence, County staff recommends that the BoCC approve a motion to NOT exercise its option to purchase the property and to notify that Seller of that decision.