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HomeMy WebLinkAbout04-28-2008TO: Members of the Sebastia ity Council FROM: Al Minner, City Manag RE: RIVERFRONT PROP F SALE DATE: Monday, April 28, 2008 In an effort to consolidate some preliminary discussion we have had with regard to purchasing riverfront property, I have provided the following. At this time, I am not ready to recommend purchase of any of these parcels. Some have ability to unify and expand areas currently under City ownership, which has some value. Other properties offer the ability to retain riverfront land and prohibit development, which is the only value they would offer the City. In short, below are the listings, please provide direction. Upon discussion, I will act accordingly. SQUID LIPS/SEMBLER'S MARINA The owner of this parcel has inquired into the City's purchasing interest. The asking price is $3.2 million. It contains 1.6 acres with 73 slips. The offer does not include purchasing the restaurant or any land west of Indian River Drive. Purchasing this lot would put the City in the marina business. In a cursory study, any ownership of this marina would not return the City's investment. At full capacity of the marina, potentially returns two-thirds of an annual payment. However, revenue from current marina sales would only be about 20% of an annual payment. Please note that these statistics are considering a 15-year note at 5%. The annual rental income would be enough to operate and maintain the marina. The owner has also stated that a financing package may be available to reduce borrowing costs. Also, if a cash deal were offered, the owner would consider reducing the asking price. PELICAN PUB Pelican Pub offers some intangible qualities being located next to the Main Street boat ramp and having additional waterfront parking. The asking price has ranged around the $1 million level. There was a buyer for this parcel, but the sale, to my knowledge, did not close. 1301 US HIGHWAY 1 While not on the riverfront, owning this small parcel would provide redevelopment opportunity for the US 1/Main Street intersection. Clearing this parcel for beautification and green space would complement the Indian River Drive/Main Street project and help correct one of the most dangerous intersection in the County. A recent conversation with the owner confirmed the same asking price at $800,000. He suggested he would slightly reduce this amount for the City, but did not seem willing to move enough to make the purchase worthwhile. PARADISE MARINA Purchasing Paradise Marina would be a similar situation to purchasing the Squid Lips Marina. It is not contiguous to any City parcel and would place the City in the marina business. Like the other marina, this purchase is probably not the best for the City. However, there is immediately adjacent residential parcel that could further expand this riverfront property. Asking price - $4.9 Million. FLAGSHIP MARIA This parcel, by far, offers the best qualities to the City. Its location is in the middle of City ownership and would unify the Riverfront Park from the City owned docks to the Yacht Club. Long term this property could provide additional boat parking or park area. Immediately the restaurant and marina could provide some revenue to offset purchasing debt. Asking price $4.5 million .