Subject:
Title
Exercise the Option to purchase the 2500 34th Street North Building and appurtenances and adopt a Resolution authorizing the County Administrator to execute instruments necessary for the completion of the transaction.
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Recommended Action:
Recommended Action
Approval to exercise the option to purchase the building, improvements, and appurtenances (Building) on the County-owned parcel located at 2500 34th Street North, St. Petersburg, FL 33713 (2500 Property) pursuant to the Lease with Option to Purchase (Lease) with 2500 34th St, LLC (Seller), execution by the Board of County Commissioners of written notification to Seller that County is exercising its option to purchase the Building, and adoption of the Resolution authorizing the County Administrator to execute instruments necessary for completion of the transaction.
• Pinellas County Property Appraiser and Pinellas County Tax Collector identified the 2500 Property as the relocation site for their operations previously located at 1800 66th Street North, St Petersburg, FL 33710 (1800 Property).
• In lieu of payment for the 2500 Property, on February 27, 2018, the County executed an Exchange Agreement (Agreement) with the Seller whereby the County would take ownership of the undeveloped 2500 Property in exchange for the 1800 Property, which would be owned by the Seller.
• On February 27, 2018, the County executed the Lease requiring Seller to develop the Building and lease it to the County until such time that the County exercises its option to purchase. Purchase price of the building is $10,177,062.92 as specified in the Option.
• Funding is budgeted under the South County Service Center Replacement/Purchase CIP Project 004992A, funded by a prior-year transfer from the General Fund.
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Strategic Plan:
Deliver First Class Services to the Public and Our Customers
5.3 Ensure effective and efficient delivery of county services and support
5.4 Strive to serve the needs of all Pinellas County residents and customers
Summary:
Summary
Approval to exercise the Option and the execution of written notice to Seller will confirm the County’s intent to purchase the Building pursuant to the terms of the Option, and Adoption of the Resolution will authorize the County Administrator to execute the required instruments to complete the transaction.
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Background Information:
The Pinellas County Property Appraiser and Pinellas County Tax Collector required office space well suited for their business operations and conveniently located for their customers. On February 27, 2018, the County executed the Agreement and the Option with the Seller to acquire the Property via exchange and require the Seller to construct the Building for lease to the County with an option to purchase.
PCPAO and PCTC took occupancy of the 40,000 square foot Building in August of 2020. County staff recommends exercising the Option at this time, as outstanding roof issues have been resolved by the Seller to the satisfaction of the County.
Pursuant to the terms of Exhibit A, Attachment 3 to the Agreement, the purchase price of the Building is $10,177,062.92.
Fiscal Impact:
Funding is budgeted under the South County Service Center Replacement/Purchase Project 004992A, funded by the General Fund. Total available funding is the amount of the full project allocation as represented in the approved budget. Available funding in excess of the recommended not-to-exceed amount is available for other project costs. In the event that future fiscal year funding is not available for this project, the County maintains the authority to terminate this agreement.
Staff Member Responsible:
Bill Greer, Director of Construction and Property Management
Partners:
Pinellas County Tax Collector
Pinellas County Property Appraiser
Attachments:
Written Notice to Seller Exercising Option to Purchase
Resolution
Exchange Agreement
Lease with Option to Purchase - “Exhibit E” to the Exchange Agreement
Location Map