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HomeMy WebLinkAbout05122006 Special CIIT OF S~~~~~~ ~.;~,f~~ ~~~~ HOME OF PEJ.lCAN IStAND SPECIAL CITY COUNCIL MEETING MINUTES CALLED BY COUNCIL MEMBER COY MAY 12, 2006 - 2:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA SUBJECT: RECONSIDER "NEW COMMUNITY CENTER LOCA TlON AND POTENTIAL FOR LAND PURCHASE" FROM MAY 10, 2006 REGULAR MEETING 1. Mayor McCollum called the Special Meeting to order at 2:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL Mayor Nathan McCollum Vice-Mayor Brian Burkeen Council Member Andrea Coy Council Member Sal Neglia (connected by telephone from New York) Council Member AI Paternoster Staff Present: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams 4. RECONSIDER "NEW COMMUNITY CENTER LOCA TION AND POTENTIAL FOR LAND PURCHASE" FROM MAY 10. 2006 REGULAR MEETING On MOTION by Ms. Coy and SECOND by Mr. Burkeen Council allowed Council Member Neglia to participate in the Special Meeting by telephone on a voice vote of 4-0. Ms. Coy said immediately following Wednesday's meeting she began to receive telephone calls from residents and County representatives, so she requested this meeting to clarify a few concerns. She reported the price of the property has never been presented for purchase by Mr. Olmstead for less than $3M and was offered within the last 30 days to City staff for $3M. She said a couple of weeks ago Mr. Olmstead offered the property to a private developer from West Palm Beach for $2.75M and she is disappointed it wasn't offered to the City for that amount. Special City Council Meeting May 12,2006 Page Two She said she voted against the purchase because she did not have sufficient information to make a firm decision, that information is changing and coming in by the minute, she was concerned that stated there is no appraisal, and that she brought this item here today to provide the opportunity to pay the $27,500 to extend the time to review the purchase. The City Manager said a good city manager knows when to let go and let a Council legislate, however, today he was going to recommend not purchasing this property for many reasons, but if Council chooses to go ahead with the purchase he would work to make it happen. He listed his reasons as: · the broker fee being 2-3 times than what it should be · no appraisal · information he had gathered regarding commercial property on US 1 sold in past couple of years which ranged from $218,000 to 396,00 per acre and the fact that this property is being offered for $564,000 per acre, noting that properties over $500,000 per acre have not been sold · that the City owes it to itself to competitively negotiate · the unclear broker relationship and the fact that we are not buying property but are buying a contract to buy the property which makes him nervous · conversation with County Administrator Joe Baird about different ideas and the fact that it is unreasonable for us to decide what we can do in two days · City Council's track record of requesting that purchases be thoroughly researched before approval · that other brokers may help the City save money if Council truly want to pursue this · the question as to whether this is a need or a want and if it is a want perhaps there are other ways to solve some of the problems such as parking that this property might be intended to solve · if it is a community center that is intended, there are other city properties that can be used · the need for inspections and unknown renovation costs to the existing building; and · the need to review existing restrictions and covenants which probably run with this land and building The City Attorney said he had briefly reviewed the previous title and said there are 17 items listed, including three or four easements, and there are declarations, covenants and restrictions which would take about a week to thoroughly research, that he would not feel comfortable pulling the trigger today, and from a diligence standpoint an extension payment would be minimum option. William Verge asked if the County is interested in buying the property for a firehouse than why is the City looking at buying it. Mayor McCollum said the City is looking at a partnership because it has an interest in it too. Special City Council Meeting May 12, 2006 Page Three Indian River County Administrator, Joe Baird said he could only speak on his own behalf because it would take a vote of the commission, but did say the County is seeking a spot for a fire station to replace the damaged station on US 1 but he was concerned with this pace and noted he had been advised that this property cannot be used for retail for up to 25 years. He responded to questions from Council and stated the County has been searching for property for a fire station and for north county offices on a long term. He said it would be hard to justify the $3.5 M price. Alice Russell, said she heard many uses talked about and they seem to conflict such as parking, fire house and community center. Joe Baird said three acres would be required for a fire station and that he had some concerns because the property is in a flood plain and is sitting close to the river and the fact that we don't have time to do good due diligence. Ms. Russell suggested using the triangle for a community center. Tim Adams recommended voting this down because it will be after May 25th anyway and asked Council to reconsider the fish house and said a fire station could be put where the existing community center is now. Neil Lagin asked why the County needed a supermajority to purchase the fish house but the City did not. ?? Douglas, said due diligence is required in this case and thought we should consider working with county and try to get more time. Walter Barnes said he thought someone was making a lot of money on a quick turnover, said there is no time allowed to answer questions, and suggested asking the County to pay half. Willard Siebert said this doesn't make any sense and recommended they pay close attention to the City Manager; and said though he would like to see the City own the property the price is ridiculous, questioning who the players were. He said if you need a real estate person he would volunteer his time for free. Damien Gilliams said Council needs to separate rhetoric from truth, and said everyone could have gotten a copy of the materials he provided from the Clerk but no one reviewed them. He said he had been pushing this property for three years, that every time the City has an event the parking is a problem. He said Mr. Olmstead does not have control of the property anymore, that Phoenix Realty Holdings bought it and he bought their contract for $250,000 and did not mark up the price for the City. He agreed with having an appraisal done if it can be done by May 25th and stated Peter Armfield said he would look into getting an appraisal done by then. He said he did not have the ability to renegotiate the contract but the City could buy 30 day increments with $27,500. Special City Council Meeting May 12,2006 Page Four He recommended the City buy the property on its own and then get with the County on their needs, said the area needs redevelopment, and lambasted Wal-Mart for discarding the building in our community, though he said Wal-Mart has grants available, and said staff could contact them to change their warranty deed provisions. He said the City would get a 15% appreciation if they sold the property, they could have a convention center, Disney could rent it, they could have batting cages inside air conditioning, and suggested selling off surplus GDC property to buy this property. In response to Mayor McCollum, Mr. Gilliams said Council has until 5 pm today if it is interested in assuming the contract. In response to Mr. Paternoster, Mr. Gilliams said he could be considered the transaction broker, and the City Attorney stated his is a dual position as a transactional broker and a party to the agreement. Mr. Gilliams said it would be a fair statement to say that he was working on behalf of both buyer and seller. Mr. Paternoster said on May 10th Mr. Gilliams said the deal had to be finalized that day, that Mr. Gilliams said he wished he had time for more due diligence but in fact the time frames have been created by Mr. Gilliams. Mr. Gilliams countered that there is a closing date in the contract. Mr. Paternoster reminded Mr. Gilliams that during discussions on the capital improvement plan, he said Council should scrutinize its spending over the next six years; and that it disturbs him to be asked to make a decision and not have facts. He said the area near the Cain House could be utilized for parking; that the whole City needs work and if we take money away from different funds it will deplete our funds and our ability to do what needs to be done. In closing he stated the property is overpriced, needs work, is in a flood zone and he cannot support the issue nor support $27,500 to continue the rhetoric. In response to Mr. Burkeen, Mr. Gilliams said he holds an active real estate license and he did not call the Special Meeting. In response to Ms. Coy, Mr. Gilliams said he approached Phoenix Realty Holdings to assume an existing contract between them and another individual and created a new contract with Phoenix and himself for an additional $250,000. She asked if he would consider taking less in private and now asked him publicly if he would lower his commission. Mr. Gilliams said it is customary to get 10 percent and the City Manager responded that it was brought to the City without negotiation at 10 percent. When asked again if Mr. Gilliams would consider three to five percent by Ms. Coy, he said he wanted to hear from the others. Special City Council Meeting May 12,2006 Page Five Ms. Coy said she was not interested in the building nor a community center, and was disappointed we didn't have time for due diligence, and that being up against the wall being told there is a deadline was not the way to do business. She said she wanted Council to meet one more time to discuss it because it has potential but in light of information provided by the City Manager and a vocal community and listening to phone conversations from two very distinct factions in this town she said she was going to reserve her final decision but was not looking to change her vote at this time. Mr. Burkeen said the item was originally placed on the agenda at his direction because he was approached by Mr. Gilliams to present it one more time and it was going to be a last chance effort. He said it was brought up that the county might be interested for a fire station and he wanted to open the door with an intent to preserve the property which could be annexed easily. He said if Council is so indulged as to what it will cost, they could spend $27,000 to extend, and reiterated that the agenda item was misleading because he didn't intend it for a community center. He recommended Council step outside the box and look at the vision of what it can be. Mr. Burkeen said he received a letter about whether Mr. Gilliams was a licensed realtor and wanted to say for the record that Mr. Gilliams had responded that he was; and said this sounds like a personal vendetta against Mr. Gilliams. In response to Mayor McCollum, Mr. Gilliams said the $27,400 would hold the property to May 19th, at which time $250,000 would be due, or the City could choose to pay additional $27,500 payments which would buy 30 day extensions. Mayor McCollum said there was no way he could support this without an appraisal, that he had some concerns with the exceptions, that the City Attorney did not have time look at it, that the 25 year retail ban was going to bring down appraised value, and that the community would have every right to be in an uproar if we purchased without an appraisal. Mr. Neglia said Mr. Gilliams said this was a dead deal after Wednesday and now it has been resurrected. He complimented Ms. Coy, discussed parking near the Cain house, said we need funds for projects, the Yacht Club needs to be fixed, piers need repair, Main Street riverfront area needs improvement, we need a community center in center of town, the public works building needs to be funded. He agreed we need a new firehouse, but the County should buy the property and build a new firehouse and possibly house some County offices. He said this is not a game, it is a lot of money and the taxpayers deserve more than this; and that he liked it even less today and it is not a personal vendetta. Mr. Paternoster said this is not going to preserve our fishing village, that moneys are needed within the city to fix the problems that we now have and we are overextended. He said the City Manager asked for $177,000 to continue drainage mowing and that is using city crews, and that he had asked him to figure out how to have the contractor, Special City Council Meeting May 12, 2006 Page Six Mr. Conlon do it without city staff, and that we are going to be asked for more police staff at budget time. He said the property is overpriced and asked the public if they would they conduct their own personal business this way and if they would, he had a piece of property for sale. He said he was a proponent of due diligence, he would not do something unless he could be sure or he would be remiss in his duties and would not support this in any form. MOTION by Vice Mayor Burkeen to purchase property as stated at $3.3 M, died for lack of a second. MOTION by Vice Mayor Burkeen, and SECOND by Mayor McCollum, to spend $27,400 for a few more days to get an appraisal done. Mayor McCollum said he was not sure we can get an appraisal done and would like to hold this off until we can. He said he cannot believe any government agency would spend this much money without an appraisal. The City Manager said $27,400 would get you to May 19 and then they would owe another $275,000 to take it May 25. Mr. Gilliams said if the city could get an appraisal he would have to renegotiate the contract and ask if buyer would extend into June. ROLL CALL on the motion failed 1-4 (Burkeen - aye) Mayor McCollum suggested just doing an appraisal and not setting a time limit it on it but there was no further action of Council. 6. Mayor McCollum adjourned the Special Meeting at 4:12 p.m. ay 24, 2006 Regular City Council Meeting.