Agenda Item Name:
Title
Lake Santa Fe - Dinh Option Contract to Purchase Real Property
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Presenter:
Andi Christman / (352) 264-6803
Description:
Staff Requests the Board of County Commissioners (BoCC) approve and exercise the attached Option Contract to Purchase the 310.33-acre Lake Santa Fe - Dinh property from the Khanh Dinh Trust, through the Alachua County Forever (ACF) program.
The execution of this Contract to purchase Real Property, is the final BoCC action on the acquisition of this project.
Recommended Action:
Recommended Action
1. Approve and authorize the Chair to exercise the Lake Santa Fe - Dinh Option Contract to purchase Real Property, subject to the County’s rights to conduct due diligence inspections and notice Seller of Title Defects and Environmental Defects as set forth in the Contract;
2. Approve the acquisition subject to title exception numbers 3, 4, 5, 7 8, as listed in the attached Title Commitment;
3. Authorize staff to execute additional documents as necessary to close the transaction; and
4. Approve the attached budget amendment authorizing the expenditure of funds for due diligence and associated closing costs.
5. Terminate any future uses of borrow pit #10 by Alachua County that are not consistent with the goals and mission of the Alachua County Forever (ACF) program.
6. Accept a perpetual, non-exclusive access easement over parcel 17302-003-000 from Alachua Conservation Trust (ACT) at closing.
7. Authorization staff to pursue land stewardship partnerships including potential County management of ACT’s parcels (17302-003-000, 17302-004-000 and 17501-001-000), and/or partnership with the City of Waldo for management of portions of the property through interlocal agreement.
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Prior Board Motions:
On January 11, 2005, the Board of County Commissioners (BoCC) placed Lake Santa Fe - Dinh property on the Active Acquisition List (Full Price List).
Fiscal Consideration:
Fiscal Consideration
The amount of the option payment is a non-refundable $1,000.00. However, if the option is exercised, the $1,000.00 will be applied to the final purchase price of the contract.
Total acquisition cost is $363,000 for the land plus $78,521 for due diligence and closing services. The basis for these estimates is detailed below.
In order to provide sufficient spending authority to cover an unanticipated change in acquisition costs, staff is requesting authorization to expend an amount equal to the estimated acquisition and due diligence costs, plus 10%.
Summary of Estimated Costs:
• Purchase price: $363,000.00 (310.33 ac x $1,169.72/ac)
• Phase I ESA: $5,257
• Boundary Survey: $40,000
• Boundary Posts & Signs: $1,000
• Attorney’s fees and closing costs: $32,264
• 10% contingency on purchase price & due diligence: $44,154
• TOTAL EXPENDITURE AUTHORITY REQUESTED: $485,675
WSPP - Land Acquisition (Capital Expense)
Fund#: 021.41.4160.537.61.00 - 6194101 Lake Santa Fe - Dinh
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Fund #: 021.41.4160.537.31.00 6184160: WSPP - Gen. Op. & Due Diligence (Operating Expense)
Annual Tax & Assessment Revenue of the 2 Dinh Parcels: $2,505.61 (total).
Estimated Annual Alachua County Forever Management Costs: $3,187
Estimated Alachua County Initial Improvements: $69,580
Note: The initial & annual management costs are for the total project, including ACT’s acquisition footprint, so the full costs are known. This helps with the consideration of Alachua County managing the whole site.
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Strategic Guide:
Strategic Guide
Environment
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Background:
Staff has negotiated the attached Lake Santa Fe - Dinh Option Contract to Purchase Real Property (Option), Exhibit 1, and it was executed by the Manager on March 9, 2023. The Option requires transmittal of a signed Notice of Exercise of Option by the BoCC Chair, to the Sellers by March 31, 2023, the date the option period ends. (Exhibit 2)
During the Inspection Period, the County shall have 150 days after the BOCC exercises its Option to conduct all due diligence on the property. The County may exercise its rights to resolve any due diligence matters pursuant to the terms of the contract within those 150 days and to extend the closing date if necessary.
The Lake Santa Fe - Dinh Tract was nominated to the Alachua County Forever (ACF) program in 2001 and staff has been negotiating on and off with the Dinh family since 2004. The Dinh Tract is located in northeastern Alachua County and lies within the Lake Santa Fe Alachua County Forever (ACF) Project area and also within Lake Alto Swamp Strategic Ecosystem. More specifically, it is located immediately east of the City of Waldo on the western shore of Lake Alto, just south of the Waldo Canal County Park. The Dinh property is adjacent to the Padgett property Alachua County purchased along Lake Alto on November 6, 2020. The Waldo Canal is partly sandwiched between the Padgett and Dinh properties and having these areas in public ownership will facilitate the City of Waldo improve public access where the canal meets the lake. In addition, connecting the Dinh Tract with Padgett will in turn connect it with the County’s Lake Alto Preserve that would become a total of approximately 1,262 acres of County conservation land wrapping around Lake Alto, protecting almost 2 miles of the shoreline (approximately ½ of the lakefront).
The Dinh Tract consists of five parcels totaling 322.31 acres. Under the Option Contract, Alachua County will purchase the two lake side parcels (17486-000-000, 17502-001-000) totaling 310.33 acres for $363,000.00, and Alachua Conservation Trust (ACT) will purchase the three roadside parcels (17302-003-000, 17302-004-000 and 17501-001-000) totaling 11.98 acres for $57,000.00. (Exhibit 1 & 4).
Nearly 94% of the lake side parcels is wetlands, and the natural community types include, clastic upland lake (Lake Alto), lake shore swamp, basin swamp, mesic & wet flatwoods, all the communities are in excellent to good condition. Within the Dinh parcel 17486-000-000 there is a revegetated shallow borrow pit and it functions as a natural open water pond in very good ecological condition. A moderate quantity of non-native exotic plants were found on the property, including camphor tree, lygodium, and cogon grass (Exhibit 3).
Public recreational use is planned for the Dinh addition to Lake Alto Preserve. There have been preliminary conversations with ACT about the County staff managing their 11.98 acres in conjunction with the Dinh tract and the Lake Alto Preserve complex of lands. Staff is also open to communicate with the City of Waldo about management collaborations as well. For many years the City of Waldo has had an interest in constructing a covered pavilion on the edge of Lake Alto where the Waldo Canal meets the Lake, along NE 145th Lane. The pavilion project has been on hold until the Dinh tract has been acquired. A cooperative management agreement with ACT and or the City of Waldo would be developed prior to or following closing. Additional recreational opportunities include the Lake Santa Fe - Lake Alto Blueway, a conceptual canoe and kayak trail through the Waldo Canal into Lake Alto, then through the Lake Santa Fe Canal and ending in Lake Santa Fe. If realized this natural and historical blueway would provide a unique recreational experience for area visitors.
The Dinh property is part of a developing wildlife corridor on the east side of Alachua County that extends from the Santa Fe River down through Lochloosa Slough Preserve. In order to construct this corridor ACF and its partners are engaging with landowners to achieve these critical connections.
There are no Permitted Exceptions in the Dinh Option Contract. The current title exception in the Schedule B-II of the title commitment, Exhibit 5, includes #3, #4, #5, #7 #8. The other standard exceptions listed, should be deleted through standard closing documents.
Schedule B-II Exception:
– #3. Any Owner's Policy issued pursuant hereto will contain under Schedule B the following exception: Any adverse ownership claim by the State of Florida by right of sovereignty to any portion of the Land insured hereunder, including submerged, filled and artificially exposed lands, and lands accreted to such lands.
– #4. Reservation of all oil, gas and minerals and rights thereto as described in that certain Fee Simple Deed recorded in Deed Book 315, Page 161. (The right of entry for the mineral reservation has been barred by Section 712.04, Florida Statutes.)(Impacting approximately 172.6 acres of Parcel 2) - (Same as Seller’s owners title insurance policy #9)
– #5. Reservation of one half of all petroleum and petroleum products, three fourths of all other minerals, and all fissionable material in favor of The Trustees of the Internal Improvement Fund of the State of Florida as described in the Deed recorded in Deed Book 344, Page 49. (Right of entry released by FS 270.11.)(Impacting approximately 1 acre of Parcel 2)
– #7. Any and all rights of the United States of America over artificially filled lands in what were formerly navigable waters, arising by reason of the United States of America's control over navigable waters in the interest of navigation and commerce, and any conditions contained in any permit authorizing the filling in of such areas. - (Same as Seller’s owners title insurance policy #11)
– #8. The nature, extent or existence of riparian rights is not insured. - (Same as Seller’s owners title insurance policy #12)
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The Title Letter from Salter Feiber, Alachua County’s closing agent, outlines the level of risk associated with the title exceptions in the Schedule B-II, # 4 and #5, on Parcel 2 / 17502-001-000. (Exhibit 8)
The Title exceptions related to oil, gas and mineral rights will be insured against right of entry being exercised by the owner of the oil, gas and mineral rights in the County’s title insurance policy for this acquisition. In review of the risk associated with existing oil gas, and mineral rights, it is also noted that the entire property falls within the municipal boundary of the City of Waldo. City of Waldo’s Policy: I.2.4 specifies, “Mining is prohibited within the City of Waldo”.
Legal access to the Dinh property is expected to be from the west, NE 138th Avenue (a City of Waldo maintained road). This will be confirmed during the boundary survey. In addition, Alachua Conservation Trust will grant Alachua County an access easement across parcel #17302-003-000, leading from US Highway 301. Exhibit 10
A boundary survey and phase I environmental assessment are the next steps of due diligence that will be initiated after the Option is Exercised by Alachua County. Closing transactions would occur once there has been a determination by the County Manager that there are no title, survey, or environmental defects.
Comp Plan Reference:
Acquiring the Lake Santa Fe - Dinh fulfills multiple objectives endorsed within the Alachua County Comprehensive Plan. Specifically, Policy 6.0 Land Conservation Program within the Conservation and Open Space Element, states “Establish and maintain a land conservation program for the purchase, preservation, and management of natural areas and open space to complement the regulatory approaches identified in other section of this element.”