St Lucie County
Florida

Action Item
4645

DiMaria Property - Parcel ID 1430-231-0001-000-1 - 71 acres (+/-) adjacent to the Treasure Coast International Airport & Business Park

Information

Department:Property Acquisition DivisionSponsors:
Category:Acquisition

Attachments

  1. Printout
  2. Location Map
  3. Contract (This file has not yet been converted to a viewable format)
  4. Memo from Geosyntec 5.18.2017

Financial Impact

N/A

Previous Action

N/A

Recommendation

If the Board desires to make an offer to purchase the DiMaria property at this time, staff recommends the Board authorize staff to provide Mr. DiMaria with the attached Contract for Sale and Purchase of his 71 acre property adjacent to the Treasure Coast International Airport & Business Park at a purchase price of $380,000.00.

Background

The 71-acre (+/-) DiMaria property is located south of and adjacent to the west end of the Airport’s main runway 10R-28L.  The property is a former landfill site that was active from 1966 and was closed to the public in 1978.  Mr. DiMaria purchased the property in 1991 for $160,000.  A Special Warranty Deed was issued with the property included “’Long Term Care” provisions” “as specified by the Department of Environmental Regulation of the State of Florida”.  In January 2005, the Florida Department of Environmental Protection issued a Site Rehabilitation Order that released Mr. DiMaria from any further obligation to conduct site rehabilitation at the site for contamination associated with the former landfill. 

 

In February 2017, County staff issued a Notice to Proceed to Parrish & Edwards, Inc. and Fuller-Armfield-Wagner, the County's independent appraisers, to determine the market value of the DiMaria property.  Parrish & Edwards, Inc. concluded a value of $1,610,000 while Fuller-Armfield-Wagner concluded a value of $1,080,000.  In April 2017, both appraisals were reviewed by Callaway & Price, Inc. who determined the most credible report was prepared by Fuller-Armfield-Wagner with a value of $1,080,000.

Given the proximity to the Airport the County has expressed an interested in purchasing the property.  However, without additional environmental and geotechnical assessment information on the property, it is difficult to provide a reliable projection of potential landfill-driven mitigation costs to prepare the property for redevelopment.  Through grant funding provided through the Treasure Coast Regional Planning Council and in concert with the property Owner, the County initiated preliminary environmental investigations completed by Geosyntec Consultants.  A summary of their findings was prepared for the County with copies provided to the Owner and his legal counsel.

 

The detailed summary prepared by Geosyntec Consultants of the potential environmental and geotechnical issues associated with the redevelopment of the 71-acre former landfill is attached.  Geosyntec’s summary also includes four attachments: A) February 16, 2017 Property Appraisal prepared by Fuller-Armfield-Wagner Appraisal & research, Inc.; B) January 1991 Special Warranty Deed; C) January 2005 Florida Department of Environmental Protection Site Rehabilitation Order and D) 1969 through 1980 Aerial Photos of the property.

 

Mr. DiMaria has been advised of the County's interest in purchasing the property.  On June 8, 2017, County staff received correspondence from Mr. DiMaria’s legal counsel indicating Mr. DiMaria could not agree to a purchase price of $1,080,000 but would be willing to sell to the County for $1,375,000.

 

On August 4, 2017, Toby Overdorf of Crossroads Environmental, Inc. contacted County staff stating he represents Mr. DiMaria.  Mr. Overdorf has previously provided environmental investigation and reporting for Mr. DiMaria and they are willing to share the findings with the County.

 

DISCUSSION:

 

As Geosyntec indicates in its report without additional environmental and geotechnical assessment it is difficult to provide a reliable projection of potential landfill-driven mitigation costs to prepare the site for redevelopment.  Geosyntec's estimate of $600,000 of these costs is a "known minimum value".  The actual costs could be much higher.  On the other hand, the cost of performing the additional studies is also significant.  The estimated cost of the Phase II environmental audit is $103,593.  The estimated cost of the additional geotechnical services is $100,000.  Although the cost of the Phase II audit is potentially reimbursable through a grant through the Regional Planning Council (RPC), the cost of the geotechnical services is not reimbursable.  For this reason, RPC staff is reluctant to proceed with the grant process in the absence of a signed purchase agreement.

 

If the Board desires to make an offer to purchase the DiMaria property at this time, based on the information currently available to staff, staff suggests that the purchase price offered should be $380,000.  The $380,000 figure was arrived at as follows:

 

$1,600,000

Appraisal #1 - Parrish & Edwards, Inc.

$1,080,000

Appraisal #2 - Fuller-Armfield-Wagner

$1,080,000

Review Appraisal - Callaway & Price, Inc.

  -$100,000

Geotechnical Services

  -$600,000

Estimated Mitigation Costs

   $380,000

Purchase Price

 

 

 

 

 

Meeting History

Sep 5, 2017 6:00 PM Video Board of County Commissioners Regular Meeting

JoAnn Riley, Property Acquisitions Manager, presented this item.

The 71-acre (+/-) DiMaria property is located south of and adjacent to the west end of the Airport’s main runway 10R-28L. The property is a former landfill site that was active from 1966 and was closed to the public in 1978. Mr. DiMaria purchased the property in 1991 for $160,000. A Special Warranty Deed was issued with the property included “’Long Term Care” provisions” “as specified by the Department of Environmental Regulation of the State of Florida”. In January 2005, the Florida Department of Environmental Protection issued a Site Rehabilitation Order that released Mr. DiMaria from any further obligation to conduct site rehabilitation at the site for contamination associated with the former landfill.

In February 2017, County staff issued a Notice to Proceed to Parrish & Edwards, Inc. and Fuller-Armfield-Wagner, the County's independent appraisers, to determine the market value of the DiMaria property. Parrish & Edwards, Inc. concluded a value of $1,610,000 while Fuller-Armfield-Wagner concluded a value of $1,080,000. In April 2017, both appraisals were reviewed by Callaway & Price, Inc. who determined the most credible report was prepared by Fuller-Armfield-Wagner with a value of $1,080,000.

Given the proximity to the Airport the County has expressed an interested in purchasing the property. However, without additional environmental and geotechnical assessment information on the property, it is difficult to provide a reliable projection of potential landfill-driven mitigation costs to prepare the property for redevelopment. Through grant funding provided through the Treasure Coast Regional Planning Council and in concert with the property Owner, the County initiated preliminary environmental investigations completed by Geosyntec Consultants. A summary of their findings was prepared for the County with copies provided to the Owner and his legal counsel.

The detailed summary prepared by Geosyntec Consultants of the potential environmental and geotechnical issues associated with the redevelopment of the 71-acre former landfill is attached. Geosyntec’s summary also includes four attachments: A) February 16, 2017 Property Appraisal prepared by Fuller-Armfield-Wagner Appraisal & research, Inc.; B) January 1991 Special Warranty Deed; C) January 2005 Florida Department of Environmental Protection Site Rehabilitation Order and D) 1969 through 1980 Aerial Photos of the property.

Mr. DiMaria has been advised of the County's interest in purchasing the property. On June 8, 2017, County staff received correspondence from Mr. DiMaria’s legal counsel indicating Mr. DiMaria could not agree to a purchase price of $1,080,000 but would be willing to sell to the County for $1,375,000.

On August 4, 2017, Toby Overdorf of Crossroads Environmental, Inc. contacted County staff stating he represents Mr. DiMaria. Mr. Overdorf has previously provided environmental investigation and reporting for Mr. DiMaria and they are willing to share the findings with the County.

As Geosyntec indicates in its report without additional environmental and geotechnical assessment it is difficult to provide a reliable projection of potential landfill-driven mitigation costs to prepare the site for redevelopment. Geosyntec's estimate of $600,000 of these costs is a "known minimum value". The actual costs could be much higher. On the other hand, the cost of performing the additional studies is also significant. The estimated cost of the Phase II environmental audit is $103,593. The estimated cost of the additional geotechnical services is $100,000. Although the cost of the Phase II audit is potentially reimbursable through a grant through the Regional Planning Council (RPC), the cost of the geotechnical services is not reimbursable. For this reason, RPC staff is reluctant to proceed with the grant process in the absence of a signed purchase agreement.

If the Board desires to make an offer to purchase the DiMaria property at this time, based on the information currently available to staff, staff suggests that the purchase price offered should be $380,000. The $380,000 figure was arrived at as follows:

$1,600,000

Appraisal #1 - Parrish & Edwards, Inc.

$1,080,000

Appraisal #2 - Fuller-Armfield-Wagner

$1,080,000

Review Appraisal - Callaway & Price, Inc

-$100,000

Geotechnical Services

-$600,000

Estimated Mitigation Costs

$380,000

Purchase Price

If the Board desires to make an offer to purchase the DiMaria property at this time, staff recommends the Board authorize staff to provide Mr. DiMaria with the attached Contract for Sale and Purchase of his 71 acre property adjacent to the Treasure Coast International Airport & Business Park at a purchase price of $380,000.00.

County Administrator, Howard Tipton, stated that the subject property presents a unique opportunity to acquire a large parcel that could play an important role at the airport with the construction of another tarmac frontage facility. The space could further the Board’s economic development goals. Staff is interested in pursuing this purchase assuming that they can better understand the environmental concerns.

Chairman Dzadovsky commented that St. Lucie County was able to do a great job on a former landfill which is now Fairwinds Golf Course and St. Lucie County will have another option to clean up a proposed brown field, and therefore he supports this item.

Commissioner Townsend motioned to approve this item. Commissioner Bartz seconded the motion and it carried 4-0.

RESULT:APPROVE [4 TO 0]
MOVER:Cathy Townsend, District No. 5
SECONDER:Linda Bartz, District No. 3
AYES:Chris Dzadovsky, Tod Mowery, Linda Bartz, Cathy Townsend
ABSTAIN:Frannie Hutchinson