Title
Site Selection Confirmation for the Fleet Management Garage and Materials Storage Facility (B)
Explanation
On August 21, 2008, the City Commission ranked the JDF Logistics, Inc. (Seller) property (78.37 acres) as the number one site to co-locate the Fleet Management Garages and Streets Recycling and Materials Storage Operation. At that meeting, the City Commission also authorized the City Manager to begin negotiation with representative(s) of the property. At the March 5, 2009 City Commission meeting, staff requested approval to purchase the property for $1.3 million; however, the City Commission instructed staff to continue negotiations for a lower purchase price and simultaneously investigate potential alternatives.
Staff was not successful in negotiating a lower price and the Seller has asked for a letter of release but the City has until April 24, 2009 to execute the contract. While staff is aware of the large gap between the appraised value and the asking price, this is the only known available property that meets the location and useable acreage criteria that were established and advertised by the City. When compared to other alternatives it is also the least costly to develop and provides the greatest opportunity for future growth and additional functions.
Fiscal Impact
Funding for the project was approved by the City Commission as part of the FY 2009 to 2013 CIP.
Recommendation
The City Commission: 1) approve the purchase of the JDF Logistics, Inc. property for a price of $1.3 million and 2) authorize the City Manager or his designee to begin the design of the Fleet Garage and Materials Recycling and Storage operation.
Alternative Recommendation A: The City Commission deny the purchase of the property and give staff specific direction as to how to proceed with the relocation of the Fleet Management and Materials Storage Facility.