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HomeMy WebLinkAbout04052006 Special HOME OF PELICAN ISLAND SPECIAL CITY COUNCIL MEETING MINUTES CALLED BY COUNCIL MEMBER COY WEDNESDAY, APRIL 5, 2006 - 5:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA SUBJECT: SALE OF CAPTAIN BUTCHER PROPERTY TO INDIAN RIVER COUNTY (lAAC) 1. Mayor McCollum called the Special Meeting to order at 5:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Present: Mayor Nathan McCollum Vice-Mayor Brian Burkeen Council Member Andrea Coy Council Member Sal Neglia Council Member AI Paternoster Staff Present: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio Growth Management Manager, Jan King Zoning Technician, Dom Bosworth MIS Systems AnalystJAV Tech, Melanie Astle Special City Council Meeting April 5,2006 Page Two 4. SALE OF CAPT'N BUTCHER PROPERTY TO INDIAN RIVER COUNTY (LAAC) Mayor McCollum stated that there would be an opportunity for public input. Ms. Coy, as the City Council's representative to the Land Acquisition Advisory Committee, distributed an outline of four issues she wished to address at this meeting (see attached) relative to pending action of the County Land Acquisition Advisory Committee to make a recommendation on the purchase of the old Johnny Mays/Floodtide Marina currently owned by Capt'n Butcher, Inc.lHarold Adams to Indian River County with environmental-cultural bonds, and would be requesting direction from City Council. She stated that she is in favor of going forward with this project but had a concern about the accuracy of an Armfield-Wagner appraisal in the amount of $ 8.3 million which assumes a parking credit set out in a Developer'S Agreement between the City of Sebastian and Capt'n Butcher, Inc. would automatically transfer to a different use other than the site plan referenced in the agreement. She said it was important to her that the purchase be pursued with accurate information and cited an opinion provided by the City Attorney (see attached). The issues she cited were: 1) Developer'S Agreement - 9/12/02. She stated that the City had paid Mr. Adams $123,212.50 to construct Jackson Street, $162,204 to purchase Jackson Street, noting the difference in the purchase price for Jackson and the appraisal for it; and asked the City Attorney if stormwater and retention area requirements would be assignable to future entities and the City Attorney stated they would. She said for the record, that the City took care of its responsibilities and sees the developers responsibilities missing. 2) Whether the agreement could be transferred to other entities. The City Attorney responded that the Developer's Agreement is tied to the existing site plan. In response to Mayor McCollum, the City Attorney said Jackson Street is owned by the City and is not a part of the deal. 3) Assumptions made in the $8.3 million appraisal and whether they are based on erroneous assumptions. She said she could not see making a recommendation to the County Commission based on erroneous assumptions. She again reiterated she wants to see the project go through. Mayor McCollum said that while the appraisal makes some assumptions about assigned parking, it is up to County staff to correct those issues before the County Commission and as long as there is nothing here that says we are selling Jackson Street he is comfortable with it. He said he did not see any impacts on the City. Mr. Neglia said he had originally thought this project would be good for the City when first presented but now felt that everyone needed to get their facts straight, and that he would like to see us go back to old fishing docks. He asked whose name would be on it and whether we can ask taxpayers to pay $8.3 million. He recommended sending it back to LAAC, make sure taxpayers get their money's worth and get answers to some of these questions. 2 Special City Council Meeting April 5, 2006 Page Three Mr. Burkeen asked if the asking price was being questioned, and Ms. Coy said yes indirectly if the assumptions are correct. Mr. Burkeen said LAAC is set up with checks and balances and it is up to the ~ounty to address it, if it feels there is erroneous information, and it is not a City of Sebastian issue. Ms. Coy said that as a representative of the City on LAAC she would have been remiss in not bringing it to Council's attention after she raised the red flag to LAAC during their deliberation. She said of the 16 LAAC members, nine voted to support her motion to table for further information on the appraisal and seven were ready to kill the project. Mr. Burkeen noted that County staff was in attendance tonight and they hear the concerns. Mayor McCollum said before the LMC vote was taken there were other concerns expressed and other properties were being considered for purchase. He said as a 35 year resident, it was important to the City that this project go through to protect the City's fishing heritage or it will be lost forever, much the same as the citrus industry. He said Ms. Coy was right to question the appraisal but he had no question in his mind that this purchase is right for the City. Mr. Neglia commended Ms. Coy for looking into this and said the County should look into it further before they spend the money. Mr. Paternoster commended Ms. Coy and urged approval of the project after proper review. Roland DeBlois, IRC Environmental Planner, read from the proposed addendum to purchase contract for Jackson Street in the agenda packet, "The Developer shall have the right to use the square footage of the road right-of-way and parking in all calculations pertaining to the development of Capt'n Butchers in present or future developmenf' and questioned it's meaning. The City Attorney said the phrase applies to the site plan and not the property as a whole, that it is not executed by the City and he would have to review it. (This document was backup in a 10/9/02 Council agenda packet and after a search of City records a copy of the purchase contract addendum with only the former City Manager's signature was found). Ms. Coy noted in response to Adrina Davis, because of the wide gap in the three appraisals, a supermajority vote of the County Commission would be required. Mr. Davis asked what the City would get out of this purchase. Mayor McCollum said the City would gain benefits of tourism but would lose property taxes because it will be public land. Damian Gilliams commended Ms. Coy for looking out for Sebastian but said he thought this would be a good project for the City and a benefit to the Riverfront, and recommended that LAAC be told the City wants this project. Linda DeSantis said the project will be an asset to the City. Clive Beckwith said this is a wonderful opportunity to preserve the City's fishing heritage. 3 Special City Council Meeting April 5, 2006 Page Four Ruth Sullivan objected to purchasing this property stating it has no historic value because it is all new development. She urged approval of the Archie Smith purchase however. She said Jackson Street is nothing more than a parking lot. Frank Wengel, discussed the purchase of the Archie Smith property, stating the total cost is contingent upon that purchase. Roland DeBlois noted the Archie Smith price would be somewhere in the neighborhood of $2-3 million. Mr. Wengel then referenced his e-mail to Mr. DeBlois (see attached). Russell Hermann said the Capt'n Butcher property has no agricultural or historical value. Michael Zito, Assistant County Administrator, said a certified appraiser is the best person to review the accuracy of an appraisal, and noted Mr. Armfield had declined his invitation to attend this meeting, and said for the record, that all three appraisals made the same assumption. Ms. Coy said the two commissioned by the County made the same assumption, and noted the City Attorney agrees the appraisal is based on a false assumption. Mr. Zito said he would ask the County Attorney his opinion on the issue, and again reiterated for the record that all three appraisals made the same assumption. Mr. DeBlois said if the County is intent on having accurate information, adjustments can be made during the due diligence period of the purchase. TAPE 1- SIDE /I (6:02 p.m.) Ms. Coy asked how she can vote on the issue without fixing the problem and wanted to know why it was being pushed forward. Mr. DeBlois said Mr. Adams has indicated a time frame and suggested that LAAC could impose conditions in its recommendation to the County Commission. Joe Baird, County Administrator, read from page 37 of the appraisal, and said there may be differences of opinion but he does not like insinuations that there is misinformation, that the County will look into it, and that highest and best use is the normal method of appraisal. Ms. Coy asked if anyone had asked Mr. Adams if he was willing to wait. Matt Setzer, Conservation Fund, under contract with County, said Mr. Adams had not been asked yet, but there is a 90 day due diligence period in which these issues can be addressed. In response to Mr. Setzer, the City Attorney said in looking at the addendum to the sales contract one would think that gives density credit, but oddly enough only the developers agreement is referenced throughout the appraisal and not the sales contract. He said this site 4 Special City Council Meeting April 5, 2006 Page Five was never referred to as Capt'n Butchers until the site plan came in and reference to Capt'n Butchers in the appraisals would mean to him that they are referencing that site plan. Mr. Setzer said appraisals are very complicated and require specific certifications and standards, noting that this firm has been in business for over twenty years. He said,in his opinion,they can verify the City's question during the due diligence period, and said the County has something very special here to protect and commended Ms. Coy for bringing this issue to light. Mr. Zito reiterated what will occur during the due diligence period. Rex Clifford, Sebastian, commended Council for its caution on this issue. Linda DiSanctis commended Ms. Coy for bringing the issue forward and said the public is counting on Council. Commissioner Wesley Davis commended Ms. Coy for bringing this issue forward, said this would be the first historical purchase with bond dollars, and that he did not see it costing city and county taxpayers to maintain it. He cited the Port Salerno port authority as an example to look at for this property. He said there could be future workshops to work out how the property will be managed, that it won't be easy but together it can be done. Mayor McCollum said this is a County issue, and recommended this Council support the project and let the County deal with the appraisal issue. In response to Mayor McCollum, members of Council said they would not have any financial benefit from the project. The City Attorney stated, at the request of Ms. Coy, "Prior to closing that the value of the land be justified by further review of the appraisals with the information that was provided". On MOTION by Ms. Coy and SECOND by Mr. Burkeen the City Council supported the concept of the fish house concept and that prior to closing the appraisals be re-evaluated in accordance with the information provided at this Council Meeting on a roll call vote of 5-0. Each member of Council reiterated their support for the project. 5. Being no further business, Mayor McCollum adjourned the meeting at 6:45 p.m. '- 5 BellSouth - Web E-mail Page lof 1 Print Message From: frank wegel <fwegel@bellsouth.net> Add to Address Book Date: 2006104104 Tue AM 09:22:24 EDT To: <rdebloiS@ircgov.com> Subject: LAAC purchase (fISh house) I attended the last LAAC meeting and was encouraged by the lively debate surrounding the possible aquisition of the "Captain Butchers" property. It is certainly a credit to our county and the commitee to see advocate democracy at work. A few days after the meeting I was reviewing. in my mind, all that was said. An idea came to mind that may be acceptable to those on the LAAC. It is as follows: 1: purchase the buildings on the Judah property and relocate them to Riverview Park in Sebastian on the same relative location on the IRL as they are now located. 2: Utilize the historic building known as "The Snowshoe House" as the museum and headquarters of the fish house exhibit. 3: Opposition can be expected to moving the Judah buildings from their present site but this has been done in the past with other historic buildings such as railroad stations. 4: Coordination with the City of Sebastian will be vital. It should be to their benefot in that they would retain the tax base represented by both the Captain Butchers and the Judah properties. In addition it would utilize the Snowshoe House which is vacant and a political liability to the city. It may be necessary to purchase additional lands next to the park or come to an agrreement with the city to utilize their property . 5: This loacation would encourage more visitation as it is already a tourist area with people coming to view Pelican Island and the terminus of the Bartrum Trail in addition to the various festivals held in the park. Thank you for your review of this proposal and I request that you forward this e-mail to the members of LAAC. http://webmall.bellsouth.net/agentflllObmain?lMgvw-.AEOAYQAlAFoARgAKABsAOwAkAD4AC... 4/5/2006