Title
East Gainesville Sprout Project Property Acquisitions: CSX Real Property (B)
Explanation
The City has designated Florida Communities Trust (FCT) to negotiate on behalf of the City for the acquisition of real property for the proposed Depot Avenue Stormwater Park. After executing the FCT grant agreement and focusing more on the nature of the onsite contamination, FCT has indicated there is a strong possibility it will not financially participate in the acquisitions until FCT is assured liability for contamination will not revert to the state if the responsible parties default on the cleanup. FCT states that in the past, it has only purchased land that complies with environmental regulations. FCT staff is currently holding discussions with the Florida Department of Environmental Protection to determine the potential liability risk to the state. FCT also has obtained from the City information regarding the cleanup of the subject properties as well as several environmental reports.
The City has designated the CSX real property as a high priority for the FCT project acquisition. The coal tar remediation is expected to begin in 2002 after the City develops a cleanup plan and obtains regulatory approvals. If FCT decides the liability risk to the state is acceptable only after purchasing the CSX properties subsequent to the coal tar cleanup, the projected closing date on these parcels would be approximately late 2002.
If the City wishes to acquire the CSX properties before FCT is willing to participate, the City can seek a waiver of a rule governing preacquisition of properties. The City has the option of seeking a waiver of Rule Chapter 9K-4.0031(9), which states that real property owned by the FCT grant applicant may be used as an eligible local match provided the real property was acquired through a voluntarily negotiated transaction within 180 days after the FCT grant application deadline. Under this rule, the deadline for the City to preacquire real property as a source of an eligible local match was December 2, 1999. If FCT grants a waiver of this rule (waiving the timeline), the City could regain control of the negotiations and begin acquiring the CSX real property. The City may then seek partial reimbursement (40% of costs) once FCT decides the liability issue. An extension of the grant contract may be required to cover the period during which cleanup can be completed.
At the April 4, 2000 meeting of the East Gainesville Sprout Project Task Force, staff reported on the preacquisition rule waiver. After a brief discussion, the Task Force requested that the City Commission proceed with the waiver. Staff recommends the City Commission authorize this action if it is believed to be in the best interest of the City to initiate negotiations with CSX as soon as possible. FCT has advised staff that the FCT Board of Trustees meets May 15, 2000 and can consider a rule waiver at that time.
Fiscal Note
The City will not receive its reimbursement from FCT for eligible property acquisition expenses until FCT decides liability risks to the state are eliminated. This conclusion will likely be reached when the property has been cleaned up in accordance with applicable environmental standards.
Recommendation
East Gainesville Sprout Project Task Force to the City Commission: Proceed with the waiver of the preacquisition rule.