Title
Acceptance of Notice of Reverter Event Release and Fee Title to the Property Known as the C. R. Layton United States Army Reserve Center (B)
This item is a request to accept the Notice of Reverter Event Release and fee title to the C. R. Layton United States Army Reserve Center located at 1125 Northeast 8th Avenue.
Explanation
In 1950, the City of Gainesville conveyed title for 6.8 acres of vacant property located at 1125 Northeast 8th Avenue to the Federal government. The US Army developed the property into a 35,625 square foot Army Reserve Center that was completed in 1953. The deed of conveyance contained a reverter clause indicating that the property would revert back to the City of Gainesville if no longer needed by the Federal government. Over 60 years later, in late 2011, the City was notified that the property was no longer needed and would be conveyed to the City.
The City was provided with an Environmental Condition of Property Update Report that was prepared for the US Army in 2010. This report identified issues in the building that would need to be addressed prior to any future reuse of the building. These issues include asbestos, lead paint and mold. Staff felt it was in the best interests of the City to complete further testing and assessment of the property. The City conducted a Phase II Environmental Assessment of the property through Water & Air Research, Inc.
Based on the testing results of soil and ground water, Water & Air Research, Inc. concluded no adverse impacts were detected. However, based on air samples acquired at various locations throughout the facility, primarily two locations were found to have moderate mildew spore types which were similar to outdoor samples. Water & Air Research recommended running the air conditioning system to lower the moisture in the air and cleaning any obvious areas of mold before occupancy.
The US Army determined that a more detailed asbestos study was needed which was completed in summer 2013. Based on that study, staff arranged for further evaluation to better understand the actions that would be necessary and estimated costs for addressing the asbestos and lead paint in the building. Staff believes that regardless of future use, any significant renovation of the building should include removal of the asbestos and lead paint. As indicated above, the reports indicate that mold can be addressed through proper cleaning and maintenance of the building.
City staff had hoped to have removal of the asbestos and lead paint addressed by the US Army. Last fall, the US Army completed abatement of the friable asbestos in the building which was accomplished through encapsulation. The City Commission also added the US Army Reserve property to the City's legislative agenda in the hopes of receiving federal funding to address the costs of remediating the asbestos and lead paint. Staff estimates the total costs for remediation of the asbestos and lead paint could be up to $350,000.
The US Army has executed a Notice of Reverter Event Release which per the 1950 deed will convey ownership back to the City. City staff is prepared to take over maintenance responsibilities upon City execution of the Notice of Reverter Release and will proceed with the one-time grounds clean-up and regular grounds maintenance. Staff will arrange for basic building maintenance to prevent further deterioration of the building.
Earlier this year, the City Commission approved an Action Plan in concept for the property. There is an existing referral to the Recreation, Cultural Affairs and Public Works Committee on "Northeast Neighborhood Veterans Memorial Park". Staff is scheduled to bring an agenda item before the Committee on May 14, 2015 to provide options addressing the community desire for a park on the grounds of the property for Committee discussion and recommendation to the City Commission.
This is an As-Is transfer, which means the US Army knows of no facts materially affecting the value of the Property which are not readily observable and which have not been disclosed in writing to City. And to the extent permitted by law, the City waives any claims against the US Army for any damage or defects pertaining to the physical condition of the Property that may exist upon reversion of the Property to the City and be subsequently discovered by the City, except for matters known but not disclosed by the US Army.
Fiscal Note
Funding in the amount $28,000 is budgeted for a one-time grounds clean-up and $20,000 annually for basic grounds and building maintenance to prevent further deterioration. The City Commission has also approved $163,000 in the Capital Improvement Plan to help address remediation costs for the building. City staff would not proceed with expenditure of these funds for remediation until the City Commission has made a determination on future ownership/use of the property.
Costs for any future renovation/re-use of the building have not been identified but would be significant. General Services expects that the roof would need to be replaced in 5 to 8 years with an estimated cost of $500,000.
Recommendation
The City Commission: 1) accept reversion of the property known as the C.R Layton United States Army Reserve Center at 1125 Northeast 8th Avenue into City ownership; and 2) authorize the Mayor to execute the Notice of Reverter Event and Release confirming the City's acceptance of the reversion of this property into City ownership.