Subject:
Title
Permission to Advertise for Sale via Sealed Bidding of Four Adjoining Properties Located at the Northeast Corner of Clearmont Street Northeast and Franklin Drive Northeast in the City of Palm Bay, Florida a Municipality within Brevard County, Florida
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Fiscal Impact:
Based on a current appraisal, the minimum sealed bid will start at $350,000. Funds received from the sale of this property will be placed in the County’s Public Works Transportation Fund.
Dept/Office:
Central Services/Asset Management
Requested Action:
Recommendation
It is requested the Board of County Commissioners approve Asset Management (1) advertise for sale via a seal bidding for the four adjoining properties located at the northeast corner of Clearmont Street Northeast and Franklin Drive Northeast in the City of Palm Bay, Florida a municipality within Brevard County, Florida; and (2) approve the minimum bid price to start at $350,000 for said described properties; and (3) upon receipt of the seal bids, authorize the County Manager to effect the sell and execute the necessary documents to provide the title to the highest qualified, responsive and best bid(s) at or over the established minimum bid price of $350,000 and authorize the proceeds from the sale of the properties to be deposited into the County’s Public Works Department Transportation Fund.
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Summary Explanation and Background:
Florida Department of Transportation (FDOT) obtained the 4 adjoining properties located at the northeast corner of Clearmont Street Northeast and Franklin Drive Northeast in 2004 as an acquisition necessary for rights-of-way purposes under threat of condemnation, pursuant to Section 337.27, Florida Statutes. FDOT conveyed the 4 adjoining properties by Quit Claim Deed to Brevard County in February 2013. The Quit Claim Deed went to the Board for acceptance on February 5, 2013. The 4 adjoining properties were conveyed as part of a Joint Participation Agreement with FDOT and Brevard County to maintain the properties acquired in connection with the Palm Bay Road project. The Board Approval Memo and Joint Participation Agreement are both attached to this agenda item.
On July 7, 2020, the Board of County Commissioners authorized to affect a sale on four contiguous surplus land properties with a minimum sealed bid of $748,000. The minimum seal bid was based on the appraisal submitted by The Appraisal Group. Asset Management conducted a sealed bid sale running for 57 days and closed on October 9, 2020, the County received no bids on these 4 properties.
In March 2022, Asset Management reached out to Land Acquisition to discuss the sale of the 4 adjoining properties again through a sealed bid. Land Acquisition recommended a second appraisal since it had been 18 months since the last appraisal. The second appraisal that was conducted in March 2022, conducted by a different appraiser, established a value of $350,000 for the 4 adjoining properties.
The second appraiser completed the appraisal in March 2022 as a typical commercial request and justified the $350,000 value based on the following:
1. All sales within one mile.
2. All sales are located in the same city and have a similar location, as well as exposure.
3. All sales sold within ½ year of the date of value.
4. All sales have similar zoning/land use
5. And concluded market value is within the range of historical values for the immediate neighborhood.
The first appraiser from 2020 was completed using FDOT supplemental standards eminent domain format and valued the 4 adjoining properties at $748,000 based on the following:
1. All sales comparisons were over one-year-old
2. All sales comparisons are located in very superior (non-comparable areas. Such as Wickham Road, Minton Road, and Baytree Drive
Due to the varying appraisal, the County had an unofficial review of the 2020 appraisal and determined the sales comparisons utilized were high profile, high traffic areas that were too aggressive for a “fair market” value. The unofficial reviewer stated the 2022 appraisal with a value of $350,000 is more realistic, although could be slightly low.
Asset Management is recommending the sale of the 4 adjoining properties using a sealed bid process in accordance with Section 125.35(1)(a), Florida Statutes and Brevard County, Florida Code of Ordinances, Article VIII, Section 2-244 and to effect the sale based on the highest, qualified responsive, and best bid at or above the March 2022 appraisal report of the 4 properties as follows:
• Lot 7 is 0.60 acres and holds an individual value of $98,000.00
• Lot 8 is 0.60 acres and holds an individual value of $98,000.00
• Lot 9 is 0.60 acres and holds an individual value of $98,000.00
• Tract D is 0.34 acres and holds an individual value of $56,000.00
The proceeds received from the sale of the properties be deposited into the County’s Public Works Department Transportation Fund.
Clerk to the Board Instructions:
None