STATE ROAD 100 CORRIDORCOMMUNITY REDEVELOPMENT AREA

Property Acquisitions

June 15, 2010

Presentation for SR 100 Board/City Council Meeting

SR 100 CRA Background and Purpose

• Background– Established April 20, 2004– 30 Year Time Horizon– Tax Increment Financing (future revenue from CRA

pays for improvements to encourage redevelopment)

• Purpose– Improve and/or Redevelop Blighted Areas

• Midway Subdivision

• Whispering Pines Subdivision

– Establish the City’s “Downtown” or Urban Core– Encourage Development of Additional Commercial

Corridor (Alternative to Palm Coast Parkway)

SR 100 CRA Completed Projects

• Master Plan Updated• Central Park Improvements• Land Acquisitions• I-95 / State Road 100 Gateway Features• Bulldog Drive Project Development and

Engineering Report• CRA Financing Approved

Future Capital Improvements

High Priority Projects

• Bulldog Drive• Central Park Enhancements Phases II and III• Civic Architecture (Community Center)• Other (Historic Property/Site Rehabilitation)• State Road 100 (Sidewalk, Traffic Signal/Mast Arm

Assembly, Gateway Signage)

Existing Bulldog Drive Corridor

Potential Bulldog Drive Enhancements

FY 2009/2010 Projections

• Tax Increment Revenue . . . . . . . . . . .$ 1,386,523• Investment Earnings . . . . . . . . . . . . . .$ 25,000• Loan Proceeds . . . . . . . . . . . . . . . . . . $ 4,000,000

TOTAL REVENUES. . . . . . . . . . . . . . .$ 5,411,523

• Professional Services. . . . . . . . . . . . . $ 100,000• Land Purchases . . . . . . . . . . . . . . . . . $ 2,900,000• Bulldog Drive Design. . . . . . . . . . . . . $ 300,000• Central Park . . . . . . . . . . . . . . . . . . . . $ 120,000• Debt Service . . . . . . . . . . . . . . . . . . . .$ 652,220 • Contingency . . . . . . . . . . . . . . . . . . . . $ 1,339,303

TOTAL EXPENSES. . . . . . . . . . . . . . $ 5,411,523

Implementation

Short-Term• Approve Current Loan• Complete Right-of-Way Acquisition for Bulldog Drive• Complete Design & Construction Plans for Bulldog Drive• Additional Property Acquisitions in Target Areas• Central Park Improvements

Long-Term• Additional Financing (Repayment of City Note)• Bulldog Drive Construction• Additional Capital Improvements per CRA Plan

Right-of-Way Acquisition Status

Third Coast Holdings, LLC

Ajram Cole

Flagler County School District

Third Coast Holdings Acquisition

• Appraisal– Arms Length Transaction Opinion of Value: $1,050,000– Arms Length Transaction (sort of)

• Negotiations– Third Coast Holdings (TCH) Offered to Sell Property to City for

$1,400,000– Initial Offer by City Staff was Appraised Value for $1,050,000– Further Negotiations Concluded with Tentative Agreement

• $1,150,000 Purchase Price (including necessary remediation)• $100,000 for Demolition of Structures and Septic Removal

Third Coast Holdings Acquisition

• Considerations– Alternative to Reaching Agreement would be either Eminent Domain or

Revising Preliminary Roadway Design– Acquisition Improves City Holdings

• Control Important Corner Entrance to Downtown• Adds Value to Adjacent Holdings• Accommodate Stormwater Off-Site to Increase Value• Eliminates State Road 100 Uncertainties (Future ROW)• Removes Blighted Properties along Major Corridor

Implementation

Short-Term• Approve Current Loan• Complete Right-of-Way Acquisition for Bulldog Drive• Complete Design & Construction Plans for Bulldog Drive• Additional Property Acquisitions in Target Areas• Central Park Improvements

Long-Term• Additional Financing (Repayment of City Note)• Bulldog Drive Construction• Additional Capital Improvements per CRA Plan

Additional Acquisitions

Interested Property Owners that

Contacted City

Additional Acquisitions

• Jane & Jason LLC– 13,000 square feet (11,500 net of easement)– Appraisal: $126,500 (based on $11/s.f.)– Offer Accepted

• Stevens– 12,405 square feet– Appraisal: $124,050 (based on $10/s.f.)– Offer Accepted

• Wilcox– 44,000 square feet (4 lots)– Appraisal: $440,000 (based on $10/s.f.)– Offer Accepted (Initially Rejected)

Budget for Land Purchases 09/10

• Land Purchases $ 2,900,000• Expended to Date $ 800,299• Proposed Purchases $ 1,940,600

– Third Coast Holdings ($1,250,000)– Stevens ($124,100)– Jane & Jason LLC ($126,500)– Wilcox ($440,000)

• Balance $ 159,101

• Contingency . . . . . . . . . . . . . . . . . . . . $ 1,339,303

Recommendation

• Approve Third Coast Holdings LLC Acquisition (June 15 CRA Board & City Council)

• Approve Additional Property Acquisitions in Target Area (June 15 CRA Board & City Council)– Jane & Jason LLC– Stevens– Wilcox

• Staff Continue Negotiations with Remaining Acquisition Needed for Bulldog Drive – Ajram