Title
Airport Industrial Park (AIP) Purchase and Sale Agreement (B)
Roger Leslie of Realty Partnership Interests has submitted a Purchase and Sale Agreement contract for the purchase of AIP Lot #6.
Explanation
In May, 2007, the Economic Development Department was contacted by Roger Leslie of Realty Partnership Interests regarding the availability of land resources in the City of Gainesville Airport Industrial Park. Mr. Leslie, in coordination with a local development group, is attempting to structure a development opportunity for Owens & Minor, Inc. a medical and surgical supply chain solutions company.
Owens & Minor, Inc. is the nation's leading distributor of name brand medical and surgical supplies and is a Fortune 500 company headquartered in Richmond, Virginia. The firm serves more than 4,000 acute-care hospital concerns nationwide including Shands Medical Center. For four successive years, Owens & Minor, Inc. has been ranked by Information Week magazine as number one in the health care sector regarding the provision of innovative information services for its customers. The company's annualized sales for 2007 will approach 7 billion dollars.
The contract is contingent upon the Buyer entering into a pre-construction lease with Owens & Minor Medical, Inc. for the development and occupancy of a 150,000 square foot distribution facility within 90 days of the effective date with subsequent extensions if the Buyer is showing good faith and viable negotiations on the subject property.
The initial facility will contain approximately 75,000 square feet with 9,000 square feet of finished office and technology space. The budget for the initial development is approximately $8 million dollars. Currently, the firm does have a component of its operation located on Waldo Road immediately north of the Airport Industrial Park and this would represent an expansion of the firm's operations within the City of Gainesville.
The proposed purchase price on the AIP Lot #6 is $295,750 for 8.45 acres, m.o.l. of land in the park platted as Lot #6. This proposed purchase price is in line with an appraisal performed on the property in late June 2007 establishing a value of $287,000 or $34,000 per acre. The AIP Lot # 6 is one of the few remaining platted and vacant pieces of property remaining in the Airport Industrial Park.
Fiscal Note
Per prior agreement with the Gainesville Alachua County Regional Airport Authority (GACRAA), the proceeds of the closing on Lot #6 will be forwarded to the Airport Authority. There will be no reimbursement to GACRAA per the established agreement as the proposed purchase price represents a market value as established by appraisal. This item is scheduled to be heard by GACRAA for concurrence on September 27, 2007.
Recommendation
The City Commission: 1) approve the attached Purchase and Sale Agreement contract for the purchase of Lot #6 in the Airport Industrial Park.
Alternative Recommendation
The City Commission: 1) deny the attached Purchase and Sale Agreement contract for the purchase of Lot #6 in the Airport Industrial Park.