Agenda Item Name:
Title
Lochloosa Slough - Fox Pen Connector, Acceptance of a Title Exception for Lack of Access to Government Lot 1, Section 27, T11S, R22E
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Presenter:
Charlie Houder / (352) 264-6804
Description:
Staff requests acceptance of a title exception related to the lack of legal access to Government Lot 1, Section 27, T11S, R22E, an isolated 40-acre parcel.
Recommended Action:
Recommended Action
1. Accept a title exception #27 (see Ex 9 - Title Commitment) related to the lack of legal access to Government Lot 1, Section 27, T11S, R22E.
2. Authorize closing of the Fox Pen Connector purchase in accordance with the agreement approved on March 23, 2021 as amended in the First Amendment of Contract for Sale, conditioned upon the County’s environmental consultant confirming prior to closing that any environmental contamination is below actionable amounts.
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Prior Board Motions:
On May 28, 2019, the BoCC placed Lochloosa Slough - Fox Pen Connector on the Active Acquisition List (Full-Price).
On March 23, 2021, the BoCC approved and authorized the Chair to execute the Contract to purchase the Lochloosa Slough - Fox Pen Connector.
Fiscal Consideration:
Fiscal Consideration
Based on the current contract, the purchase price is $2,960.00 per acre, for an estimated total of $10,748,352.30. The total authorized expenditure authority including due diligence and contingency for survey adjustments is $12,031,241.53 funded by Wild Spaces Public Spaces. 021.41.4160.537.61.00, 6194101: Lochloosa Slough: Fox Pen Connector.
There is no additional fiscal impact related to this item.
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Background:
At its March 23, 2021 meeting, the Board approved the exercise of the County’s option to purchase the Fox Pen Connector subject to the completion of due diligence and resolution of certain title exceptions noted in the title commitment (Ex 9). At that meeting, the Board approved accepting the property subject to the following title exceptions listed in Schedule II-B of the title commitment: 8, 16, 20, 24, 29, 30, 31 and 32. As to title exception 27 (i.e., lack of legal access to a 40 acre parcel located in Section 27, T11S, R22E), staff advised that it would try to resolve the matter. Staff has developed a possible means to resolve the lack of legal access to the 40 acre parce (i.e., title exception 27) and during the course of due diligence, staff identified two additional issues that need to be resolved prior to closing. Staff’s recommendations regarding all three items are as follows:
1. Lack of Legal Access to Government Lot 1, Section 27, T11S, R22E
Staff investigations of the property have determined that one disjunct 40-acre portion of the property currently lacks legal or physical access. Weyerhaeuser timber stand maps and aerial photography indicate that the majority of the parcel is forested wetlands. Staff has been working with the Weyerhaeuser’s agent to determine the feasibility of obtaining access.
In the meantime, owners of the property that lies between this disjunct parcel and the main body of the Fox Pen Connector have nominated their 120 acres for purchase by the County. In conversations with staff, they have also expressed a willingness to consider granting an easement to the County that would provide legal access to the 40 acres. Neither the conveyance of an easement nor a contract for purchase the property is likely before the closing with Weyerhaeuser.
If the County is unable to purchase the adjacent 120 acres or secure an easement across it, there will be no legal access to the 40-acre parcel. Staff will be unable to take management actions on the property until an easement is secured, likely through the courts. Under Florida law, access must be provided, but the County may need to pursue a Statutory Way of Necessity, similar to eminent domain. Under this procedure, a jury trial may be necessary to determine the amount the County must pay the landowner for an access easement.
Given the small overall impact of this 40 acres on the entire project, and that there is a real prospect of obtaining legal access, staff recommends accepting the title exception that is created by the lack of legal access to this parcel.
2. Timber Discrepancy
In preparation for the appraisal of the property, the County engaged F&W Forestry Services, Inc. (F&W) to confirm planted pine timber volumes provided to the County by Weyerhaeuser personnel. F&W’s estimates for total volume, reported on February 21, 2020, had a high level of statistical confidence and indicated that Weyerhaeuser’s reported volumes were probably conservative. The F&W report noted that subsequent to their field inventory, some harvesting has been observed on the property. Weyerhaeuser acknowledged continued harvesting and in May 2020 provided County staff with a map indicating stands planned for thinning or clearcutting.
This map along with the Weyerhaeuser-provided timber volumes, adjusted for the harvesting of stands shown on the May 2020 map, were provided to the appraisers in a memo from County staff. This information was used by the appraisers in their value estimates dated September 19, 2020. The continuation of timber harvesting in stands shown on the May 2020 map is permitted under the terms of the Contract for Sale (Contract) executed on March 23, 2021.
Subsequent to the execution of the Contract, staff began the due diligence process in preparation for an anticipated closing on or before August 27, 2021. During field inspections, it became apparent that Weyerhaeuser had clearcut stands that were not on the May 2020 map and had not been reported to the appraisers. After some inquiry, staff confirmed that Weyerhaeuser had provided a paper map showing all anticipated harvesting in January 2020.
Staff requested that F&W confirm staff observations and provide valuation of the planted pine before and after the harvests of these stands. Their report found that harvested stands not shown on the May 2020 map total 287.7 acres. Based on their earlier inventory and timber prices applicable as of the date of appraisal, the value of this timber is estimated at $303,623.
The harvest of this timber is mitigated by the fact that the remaining timber has continued to grow and appreciate since the first F&W inventory. The value of all planted pine based on the February 2020 inventory, prior to Weyerhaeuser’s harvest, was estimated at $2,208,000. The projected value of the remaining planted pine at closing (after approximately two years of growth) is estimated at $2,300,000. Therefore, staff recommends proceeding with no adjustment to the appraisals or purchase price.
3. Reported Environmental Condition
The Phase I Environmental Site Assessment (ESA) documented one potential source of contamination on the property. A shooting range primarily for siting rifles is located within a camp area used by the club that leases the property for hunting. The potential presence of lead within and around the mounded earth used as a backstop makes this a reportable condition. A Phase II ESA is underway in order to determine the presence or absence of contamination. The results of the testing should be available prior to the August 10 meeting. The County’s consultant considers the likelihood of contamination to be low, but staff may have additional recommendations for the Board if contamination is detected. Staff recommends closing without further price adjustment if the results of the Phase II ESA determines that contamination is below actionable limits. If the results show contamination at or above actionable limits, staff will bring this matter back for further Board consideration.