Agenda Item Name:
Title
Acceptance of a Title Exception for the Padgett Property
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Presenter:
Charlie Houder / (352) 264-6804
Description:
Request that the Board of County Commissioners (BoCC) accept a title exception for outstanding mineral rights on the Padgett Property and allow the transaction to purchase the property to proceed to closing.
Recommended Action:
Recommended Action
Accept the title exception for an outstanding one-half interest in mineral rights as per the reservation in the January 4, 1954 deed from W. P. Harden et al recorded in Book 315, Page 161, and authorize staff to proceed with the purchase of property from Jackie S. Padgett in accordance with the current Option Contract to Purchase Real Property.
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Prior Board Motions:
On April 15, 2020, the BoCC exercised the Option Contract to Purchase the 317-acre Lake Santa Fe - Padgett Property.
Fiscal Consideration:
Fiscal Consideration
There will be no change in the expenditures previously authorized.
Project #6194101 Lake Santa Fe - Padgett, total amount $731,688 from Wild Spaces Public Spaces.
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Background:
On April 15, 2020, the County exercised an option to purchase the 317-acre ± Lake Santa Fe - Padgett property. The Option Contract to Purchase (Contract) provides that the seller will convey the property with no permitted title exceptions (defects). Under the Contract, the County has 120 days to conduct due diligence and notify the seller of title defects. Once the seller is notified, she has 60 days within which to cure the defect. If the seller is unable to cure the defect within to time allowed, the County may elect to accept the defect and close, or to terminate the Contract.
An examination of the title determined that there is an outstanding mineral interest affecting approximately 40 acres of the property. This interest originated from a reservation of one-half of oil, gas, and mineral rights contained in a 1954 deed from W. L. Harden et al. In many cases, the Marketable Record Title Act extinguishes the interest-holders right of entry after 30 years. In this instance, the holders right of entry may have been preserved since the mineral rights are being assessed separately by the Alachua County Property Appraiser.
A Notice of Title Defect was delivered to the seller’s attorney on August 14, 2020. The 60 day cure period has now been initiated. The closing date is extended for 70 days. The seller is working to clear the outstanding mineral interest, but there is no guarantee that they will be successful.
As shown in the attached map, the 40-acre area in the southwestern portion of the property is completely within a wetland as classified by the National Wetlands Inventory. It is also bisected by the Waldo Canal. Considering that the County would control a one-half interest and that the property would be considered environmentally sensitive, the risk of any potential mineral development would appear to be low.
If this title exception is accepted and the holders did attempt to mine based on their one-half interest, the County would not be able to make a claim through the title insurance company. The cost of the defense would be borne by the County.