Title
Proposed Amendment to Airport Industrial Park Restated Declaration of Protective Covenants and Restrictions (B)
This item proposes deletion of Article XII, Right of Repurchase, of the Airport Industrial Park Restated Declaration of Protective Covenants and Restrictions.
Explanation
In August, 2009, staff received a letter from the owner of Lot #22 in the Airport Industrial Park indicating that based upon the unprecedented crisis in the State's real estate market that he would be unable to fulfill his development obligations under the terms of the contract and Airport Industrial Park Restated Declaration of Protective Covenants and Restrictions. As a result, he requested a release of the terms of the reverter and thus the ability to sell the subject property in the private market.
In order to achieve this result, it has been determined by staff that applicable provisions of the Airport Industrial Park Restated Declaration of Protective Covenants and Restrictions, need to be amended, namely deletion of Article XII, Right of Repurchase. Amendment of these Covenants and Restrictions is contemplated within the instrument (it has been done previously) and essentially requires the consensus of Airport Industrial Park owners representing 66 2/3's% of the total acreage of the property.
Staff has received the required authorization of five current owners and presuming City approval a total of 89.5 %of Airport Industrial Park acreage would be achieved overall.
This action is in the City's interest for the following reasons:
· Although ad valorem taxes are being generated on the subject property, there has been no building activity on Lot #22 and this policy action will likely lead to more timely development of a currently vacant site and therefore greater return to the City;
· The owner has indicated an interest in allowing the City to assist with pro-actively marketing the site to a compatible and sought after New "Innovative" Economy entity;
· In systematic terms, the current Restated Declaration of Protective Covenants and Restrictions applicable to the Airport Industrial Park could force the subject property and affected future property to revert to the City with proceeds refunded to the current owner. This is not in the City's interest as property sold fee simple for economic development purposes generates ad valorem tax revenue and the proceeds of sale are not within the City's control per prior agreement with GACRAA regarding disposition of Airport Industrial Park properties.
Fiscal Note
Sale of the subject property in the private market as a result of the amendment would allow for development that could boost ad valorem tax proceeds to the City and GACRAA. The proceeds of the sale of the subject property are not within the purview of the City to control at this juncture.
Recommendation
The City Commission: 1) approve the First Amendment to Second Amended and Restated Declaration of Protective Covenants and Restrictions for the Airport Industrial Park, Unit I, Unit II and Unit III located in the City of Gainesville, Alachua County, Florida; 2) authorize the Mayor to execute and the Clerk of the Commission to attest the First Amendment; 3) authorize the Mayor to execute and the Clerk of the Commission to attest a Quit-Claim Deed expressly releasing the reverter rights in and to Lot 22, Airport Industrial Park, Unit III owned by J.A. Beguiristain Holdings, Inc.; and 4) direct City Staff to record the fully executed First Amendment and Quit-Claim Deed in the Public Records of Alachua County, Florida.