Title
Florida Food Service, Inc. - Proposed Option and Purchase and Sales Agreement to Facilitate Expansion (B)
Explanation
On January 13, 1997, the City Commission approved a Contract for Purchase and Sale and Option Agreement with Florida Food Service, Inc for property located in the City's Airport Industrial Park. The Contract stipulated that Florida Food Service, Inc would purchase 6.94 acres of land with an Option to purchase an additional 3.47 acres of land at a future date (within five (5) years of closing on the original 6.94 acres).
On July 13, 2005, City of Gainesville staff received communication from Florida Food Service, Inc indicating an interest in exercising the Option on property (Lot 12) in order to facilitate future expansion plans. Per the Contract for Purchase and Sale and Option Agreement and subsequent amendment, the closing on the original Option is intended to occur within sixty days of written notification. The City Commission authorized the Mayor and appropriate City staff to execute all documents to facilitate the exercise of Option on Lot 12 on August 8, 2005.
Recently, Florida Food Service, Inc indicated an interest in acquiring an additional piece of Airport Industrial Park property designed to further facilitate its proposed expansion. The property is comprised of approximately 3.51 acres and lies adjacent to the east of Lots 12 and 13. The property is reported to have suffered environmental contamination generated by property immediately adjacent to the north. City staff has worked with the City Attorney's office to craft language that would indemnify the Purchaser from preexisting environmental conditions. This additional property is planned to be utilized for access and parking associated with the primary food distribution business.
In the interests of timeliness, the proposed project was conceptually reviewed and approved by the Gainesville Alachua County Airport Authority (GACRAA) on September 15, 2005. GACRAA did request, as a condition of the approval resolution, that the Airport Authority be indemnified due to the pre-existing environmental conditions that may be present on the property.
Fiscal Note
The Purchaser has offered a purchase price of $76,342 for the 3.51 acres at $21,750 per acre. This purchase price is consistent with that offered on Lot 12 in 1997 and reflects a discount based upon the reported condition of the property. Per prior agreement with the GACRAA, the proceeds of the closing on the Option property will be forwarded to the Airport Authority and the difference if any, between the purchase price and fair market value will be reimbursed to GACRAA based upon receipt of 50% ad valorem revenues for a period of ten (10) years following closing.
Recommendation
The City Commission: 1) approve the attached Option and Purchase and Sales Agreement for the purchase of the proposed 3.51 acres in the Airport Industrial Park; 2) authorize the City Manager to sign the contract which has been approved by the City Attorney as to form and legality; and 3) authorize the Mayor and Clerk of the Commission to execute the closing documents.