Submitted By: Roberto Ellis
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Presentation By: Roberto Ellis
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Department: Growth Management
FORMAL TITLE:
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Authorization to enter into a purchase and sale agreement for real property located along the 1900 block of NW 21st Street, approximately 10.49 acres, further identified by parcel ID: 21943-000-00, in an amount not to exceed $868,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Parcel 21943-000-00 is a 10.49-acre property located along NW 21st Street, approximately 277 feet east of the intersection of NW 21st Avenue and NW 21st Street, currently owned by Ocala Cleat Company. Refer to the attached Aerial and Case Maps. The City of Ocala owns the west- and south-adjacent parcels 21943-000-01 and 21944-000-00. The adjacent south parcel is the home of the Mary Sue Rich Community Center at Reed Place. The City recently used the EPA Brownfields Assessment Grant to prepare a mitigation and redevelopment master plan for the area surrounding Reed Place. As part of the redevelopment master plan, the subject property was identified as a potential redevelopment site. The property owner’s representative subsequently reached out to the City to determine its interest in the property. The City completed an appraisal of the property, which resulted in an appraised value of $1,240,000.
The City and CRA are integrally involved in establishing Reed Place as a hub for the community, collaborating with community leaders who spearheaded efforts to:
• identify environmental issues at the former charcoal plant
• close the plant
• clean up of the property
• facilitate the City’s purchase of the former charcoal plant.
The property is strategically located between major redevelopment and investments to the north and south, including:
• Wetland Groundwater Recharge Park
• West Oak redevelopment project
• Mary Sue Rich Community Center
• The remaining undeveloped portion of Reed Place
• Lillian Bryant Park
FINDINGS AND CONCLUSIONS:
The City supports and will be proactive in the redevelopment of property consistent with the recently completed mitigation and redevelopment master plan for Reed Place. Redevelopment proposals will be evaluated for consistency with the West Ocala Community Redevelopment Plan. According to the Urban3 Study: Economics of Community Design, the average value per acre in the West Ocala CRA is $345,000. In contrast, the average value per acre of the subject property is estimated at $120,000. The value discrepancy presents an opportunity to accelerate development of this parcel in a manner consistent with the West Ocala Community Redevelopment Plan.
If approved, this request will authorize the execution of an Agreement for Purchase and Sale of Real Property. The Seller, Ocala Cleat Company, is prepared to accept a purchase price of $807,000. The City would be responsible for all other costs detailed in the attached Cost Summary. Based on the market analyses, investigations, and studies presented in the Appraisal Report, the estimated market value of the fee simple interest in the subject property as of November 7, 2024, was $1,240,000. The Appraisal Report considered and recognized existing environmental conditions, impacts from the previous operation of the Royal Oak Charcoal Plant, and the operation of the now redeveloped Pine Oaks Golf Course.
• Acquisition of this site aligns with the recommendations of the West Ocala Vision & Community Plan, specifically, creating the Pine Oak Square Main Street Mixed Use District.
• Additionally, this site contributes to a catalytic opportunity, included within the broader vision for Reed Place.
o The Reed Place Master Plan contemplates key pillars to transform Reed Place further, incorporating recommendations that address sustainable land use and housing; recreational and social enhancements; transit, connectivity, and public health; as well as economic development.
o The study area for the Plan focuses on the entire block, comprised of approximately 70 acres, both privately owned and City-owned. Upon acquiring the subject property, the City would own approximately 57 percent of the block.
o The plan addresses the challenges posed by groundwater and soil contamination from a former charcoal plant, as well as groundwater contamination from a nearby golf course, to ensure redevelopment efforts prioritize environmental safety, public health, and long-term sustainability.
• The future land use classification on this property is Medium Intensity/Special District, which requires a minimum development density of five dwelling units per acre and intensity of 0.15 floor area ratio (FAR), and allows for a maximum development density of 30 dwelling units per acre and intensity of 4.0 FAR.
• The City owns properties immediately to the west and south of the subject property. The property is currently vacant and undeveloped. Refer to the attached map for the property's location. Acquiring this property will provide the City and developers with more options when a solicitation for redevelopment is advertised.
Per the seller’s request, the closing date shall be on or before December 31, 2025. Staff have commenced preliminary due diligence pertaining to the acquisition due to the short timeframe for closing. Council’s approval of this request will grant the Ocala City Council President or City Manager the power to execute the agreement and/or take actions necessary to acquire the property.
Staff recommends approval.
FISCAL IMPACT:
The total expenditure will not exceed $868,000 and will be purchased with West Ocala CRA property acquisition funds. The CRA property acquisition account (623-016-560-559-61-61010) currently has a balance of $1,406,351. Future redevelopment of this property is expected to increase ad valorem taxes and revenue from City services over time.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny