Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
FORMAL TITLE:
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One-year extension to the purchase and sale contract for 115 acres of non-aviation property at Ocala International Airport with InSite Real Estate Investment Properties, LLC
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On May 21, 2024, the City Council approved a purchase and sale contract with InSite Real Estate Investment Properties, a privately held development company headquartered in Oak Brook, Illinois. The contract was executed on June 11, 2024, and is set to expire on June 10, 2026.
Since execution, InSite has actively pursued due diligence and marketing of the property, expending approximately $376,000 on the following:
• ALTA Survey
• Topographical Survey
• Geotechnical Subsurface Report
• Traffic Impact Study
• Wetland Delineation
• Protected Species Study
• Environmental Phase I ESA
• Tree Survey
• Utility Coordination and Will-Serve Letters
InSite is requesting additional time to address gopher tortoise mitigation, easement issues, wetlands, floodplain, and stormwater considerations, and tree mitigation measures-all of which require completion of civil design. Their estimated cost to complete these additional measures is $410,000.
FINDINGS AND CONCLUSIONS:
InSite continues to demonstrate progress despite entering the second year of the original contract term.
Staff recommends approval of a one-year extension of the purchase and sale contract to June 10, 2027, subject to the following conditions:
• Within six months of closing, a new fair market value appraisal by an MAI-certified appraiser will establish the sale price of the 115 acres, which shall not be less than $12,075,000.
• Payment of an additional nonrefundable $10,000 deposit.
FISCAL IMPACT:
• Final sales price to be set by appraisal, not more than six months prior to closing, and not less than $12,075,000.
• Nonrefundable $10,000 fee deposited to account 451-364-000-000-16-36423.
• No broker fees are to be paid by the City.
• Proceeds from the sale will be applied to the Airport Sale of Assets account (451-364-000-000-16-36423) and used for capital infrastructure projects. Upon completion of the transaction, a budget resolution will be presented to the Council to appropriate the revenue.
PROCUREMENT REVIEW:
This amended purchase and sale contract has been reviewed in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This amended purchase and sale contract has been reviewed and approved for form and legality by the City Attorney, William Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny