Agenda Item Name:
Title
Sale, Purchase and Escrow Agreement for Building at 3217 SW 47th Avenue for the Medical Examiner
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Presenter:
Ramon Gavarrete, P.E.
Description:
Request approval of Sale, Purchase and Escrow Agreement with 3217 Gainesville Investment, LLC for building currently used for Medical Examiner’s Office
Recommended Action:
Recommended Action
Adopt the attached resolution to approve the Purchase Contract with 3217 Gainesville Investment, LLC, for the purchase of the Medical Examiner Building, authorize the Chair to sign the Agreement and authorize the Chair or the County Manager (or her designee) to sign any additional documents, approved by the County Attorney, necessary to complete this transaction
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Prior Board Motions:
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Fiscal Consideration:
Fiscal Consideration
Purchase Price of Building: $3,500,000.00
Building Condition Due Diligence Report: $ 4,990.00
Appraisal (Santangini Appraisals, LLC): $ 7,500.00
Appraisal (Pinel & Carpenter, Inc.): $ 7,500.00
Attorney’s Fees: $ 3,000.00
Phase 1 Environmental Site Assessment: $ 1,875.00
Recording Costs: $ 100.00
Estimated Total Cost $3,524,965.00
Budget Available after carry forward approval $3,705,000.00 in account: 331.29.2906.527.62.00
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Background:
On December 29, 2017, 3217 Gainesville Investment, LLC (Seller and Lessor) acquired the subject property for the purpose of constructing a building to house the Medical Examiner, District 8. On June 27, 2017, the Seller, as Lessor, entered into a lease with Florida Clinical Practice Association, Inc., as Lessee, for the construction and occupancy of the 8,276 square foot medical examiner’s building (the Lease). The Lease is for a period of 10 years, commencing upon the completion of construction and occupancy of the building. Also on June 27, 2017, the Lessee entered into a sublease with the University of Florida Board of Trustees, for the benefit of the Department of Pathology, Immunology & Laboratory Medicine, College of Medicine, University of Florida (“Medical Examiner” or “Sublessee”) for the occupancy and use of the medical examiner’s building located on the Property.
Section 19.15 of the Lease grants the Lessee the option to purchase the medical examiner’s building for $3,500,000.00. On May 3, 2018, the parties amended the Lease naming Alachua County as a permitted assignee of the Lessee, with the right to exercise the purchase option set forth in the Lease. As part of this transaction, the Seller/landlord will assign its right in the Lease to the County, so that the Lease and Sublease will otherwise remain unchanged and in full force and effect.
The Property is part of a commercial park and, as such, is subject to certain recorded Declaration of Covenants and Restrictions (“Covenants”). Among other things, those Covenants would require the County to pay assessments imposed by the commercial park’s Owner’s Association, for the cost of such items as the care and maintenance of common areas, including parking lots. As a part of this transaction, County staff has carefully reviewed and considered the Covenants and other Permitted Encumbrances to title (e.g., utility easements), and performed or contracted for a thorough due diligence on the property. This included a complete building inspection (report attached), a survey of the property and improvements (survey attached), two independent MAI appraisals (copies attached) and title work. The inspections, survey and title work show no significant issues with the property or improvements that will not be cured prior to closing. The value of the property, based on an average of the two MAI appraisals is $3,557,500.00.