Agenda Item Name:
Title
Purchase of Budget Inn located at 4401 SW 13th Street, Gainesville, FL-Tax Parcel # 07222-000-000 & # 07222-001-000
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Presenter:
Ramon Gavarrete, P.E. and Claudia Tuck, LCSW
Description:
Request approval of Option to purchase of Budget Inn as a part of the Permanent Supportive Housing Program
Recommended Action:
Recommended Action
Exercise the option to purchase real property for $2,300,000 pursuant to the Option Contract to Purchase Real Property; authorize the Chair to execute the Notice of Exercise of Option; approve the closing and other transactional costs, and authorize the Chair or County Manager (or her designee) to sign any additional documents, approved by the County Attorney, necessary to complete this transaction; and approve budget amendment moving budget from General Fund Reserves.
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Prior Board Motions:
October 6, 2020
Fiscal Consideration:
Fiscal Consideration
Purchase Price of Budget Inn: $2,300,000
Building Condition Due Diligence Report: $ 35,800
Appraisal (Santangini Appraisals, LLC): $ 7,600
Appraisal (Pinel & Carpenter, Inc.): $ 8,500
Attorney’s Fee: $ 900
Title Insurance Premium and Search Fees: $ 8,825
Recording Costs: $ 80
Estimated Total Costs $2,361,705
The budget amendment for the purchase is currently being proposed to be funded with General Fund Reserves. Alternatively, the $1,000,000 FY21 budget for housing programs as we transition away from Grace Marketplace could be used to assist.
Additionally, the attached preliminary operations budget includes estimated revenues of $274,816 and estimated expenditures of $207,976 in operating expense and $66,841 in appropriated reserves. Staff will bring a final proposed operational plan to the Board for approval at a future meeting along with a budget amendment to fund the operational plan operational plan, a budget amendment will be presented at a future meeting.
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Background:
Staff reviewed available County owned property and determined Alachua County does not own any vacant buildings that could be renovated to accommodate, shelter or house 36 individuals, currently without housing, to protect them from the COVID-19 pandemic.
This acquisition will allow the County to permanently house chronically homeless individuals and will utilize rent contributions from the inhabitants and subsidies.
As a part of this transaction, County staff has performed or contracted for a thorough due diligence inspection of the property. This included a complete building and land 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, improvements, or title. Pursuant to the attached Due Diligence Report, the property is generally suitable for continued use at this time but will require some maintenance and repairs within the next few years to systems such as roofing, electrical, and HVAC. The value of the property, based on an average of the two MAI appraisals, is $2,162,500.00; one which appraised the value at $2,250,000 and the other at $2,070,000.