Title
Extension of Two Year Reverter Clause and Change in Ownership - Lot #22 Airport Industrial Park (B)
This item requests an extension via Resolution by the City Commission to the two year reverter clause applicable to development and construction and a transfer of ownership on Lot #22 in the Airport Industrial Park.
Explanation
On September 12, 2005, the City Commission approved sale of Lot #22 in the Airport Industrial Park to J.A. Beguiristain Holdings, Inc. in the amount of $176,225.00. Lot 22 is located adjacent to the southwest of the existing Nordstrom's property and consists of approximately 5.3 acres. A deed of conveyance was executed by the City on November 2, 2005 with closing on the property taking place on November 4, 2005.
In addition to the J.A. Beguiristain Holdings Inc. entity, Mr. Jose Beguiristain is currently owner and operator of B-Line Apparel, a Miami based corporate wearable and custom apparel company in operation for ten years, and owns property in the Airport Industrial Park identified as the former American Poly-Steel Building. B-Line offers custom apparel manufacturing; private labeling; in-house screen printing and embroidery; a creative art department; and, a related staff of sales associates. A University of Florida alumnus and homeowner in the Duck Pond area, his stated intention has been to develop multi-flex space light industrial inventory for his business and others in the greater Gainesville area.
At the time, the Purchaser's stated intention was to develop a portion of the B-Line Apparel business in the area as well as additional light industrial space to fill gaps in the area's light industrial building and land inventory.
Since sale of the property, Mr. Beguiristain has been working on development options however, due to recent volatility in the real estate market, a financial hardship associated with the failure of a former partner to meet previously stated financial hardships and challenges associated with development of space for the Innovative Economy market, progress has been slow.
As a consequence, Mr. Beguiristain is requesting an extension to the two year standard reverter contained in Airport Industrial Park deed restrictions and the approved contract with the City of Gainesville. According to the terms of the reverter, the City may issue an extension via Resolution if good cause is shown by the owner. In addition, in order to proceed, Mr. Beguiristain is requesting the ability to transfer ownership of the property out of the holding company into a new corporate entity in which he holds a majority interest.
Mr. Beguiristain does appear interested in fulfilling his obligation to develop the property and has entered into a new affiliation with International Property Group, a commercial real estate development and services firm, to move forward. Staff has worked with Mr. Beguiristain and local entities in the ensuing two years to assist in putting together various development options and at this juncture has asked that a specific time line be provided containing achievable benchmarks for implementation of the project.
Fiscal Note
None. Proceeds of the original sale were forwarded to the Gainesville Regional Airport per prior agreement between the City of Gainesville and Gainesville - Alachua County Regional Airport Authority (GACRAA) and a modest reimbursement amount is payable due to a difference in the offered purchase price and established market price of approximately $9,275. Providing the extension of reverter and change in ownership is intended to allow for development of the property and return to the City in the form of ad valorem proceeds.
Recommendation
The City Commission: 1) approve the extension of reverter for a period of two years consistent with the time line for site planning, applicable permitting, construction and issuance of a Certificate of Occupancy and approve the proposed change of ownership; and 2) authorize the Mayor to execute a Resolution granting an extension of the reverter and consent to change of ownership for Lot #22 in the Airport Industrial Park; and authorize and direct the Clerk of the Commission to record a true and correct copy of the Resolution in the Public Records of Alachua County .