Title
Request to Release Reverter Rights (B)
This item is a request to release the Reverter Right provisions contained in deeds to Santa Fe Community College Endowment Corporation, Inc.
Explanation
In 1989, the City of Gainesville conveyed Tax Parcel 14497-000-000 to Santa Fe Community College Endowment Corporation, Inc., now known as Santa Fe College, Santa Fe College Foundation, Inc. (SFCF), by deed recorded in Official Records Book 1745, page 569. The deed contained a restrictive covenant that the property be used only as an educational facility. It also contained a reverter provision requiring SFCF to complete and operate an educational facility on the property within three years.
In 1997, the City conveyed Tax Parcels 14496-000-000 and 14493-000-000 to SFCF by deed recorded in Official Records Book 2147, page 1391. The City also conveyed Tax Parcels 14474-000-000 (now 14474-001-000) and 14490-000-000 to SFCF, by deed recorded in Official Records Book 2147, page 1394. These two deeds contained a reverter if the properties failed to be used exclusively to provide and render educational services and/or ancillary services. The two deeds also contained a reverter clause requiring completion of an education facility and or ancillary facility on the properties within fifteen years from the date of the deed (i.e., December 30, 2012). The City executed a Quit Claim Deed to SFCF for Tax Parcel 14492-000-000 as recorded in Official Records Book 2147, Book 1399. This deed did not include a reverter clause. A map depicting all of the parcels is provided in the back-up.
The City Manager and the City Attorney have received requests from SFCF, asking for the release of the right of reversion contained in the deeds from the City to SFCF. City staff believes the release of the reverter rights pertaining to the completed construction of an education facility on parcels 14497-000-000 and 14474-001-000 is warranted, as Santa Fe has constructed and occupies its downtown campus buildings on those parcels.
The only improvements on Tax Parcels 14490-000-000 and 14493-000-000 is the installation of an aluminum ornamental fence, allowing space for unimproved parking. As a result, City staff recommends granting a fifteen year extension of the reverter provision requiring an education and/or ancillary facility be constructed on the parcels.
City staff also believes it would be in the City's best interest to retain a restrictive covenant over all of the parcels requiring them to be used solely for educational and/or ancillary facilities.
Fiscal Note
There is no fiscal impact at this time.
Recommendation
The City Commission: 1) approve the release of the reverter on Tax Parcels 14497-000-000 and 14474-001-000; 2) approve extending, until December 30, 2027, the requirement for completion of educational and/or ancillary facilities on Tax Parcels 14490-000-000, 14492-000-000, and 14493-000-000; 3) retain a restrictive covenant limiting the use of all of the properties to educational and/or ancillary uses; and 4) authorize the Mayor to execute, and the Clerk to attest such deeds or other documents as are necessary to effectuate the foregoing, subject to approval as to form and legality by the City Attorney.