Submitted By: Tye Chighizola
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Presentation By: Tye Chighizola
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve from the City of Ocala to the Transition Life Center and Community, Inc. a special warranty deed for Parcel # 25237-001-00 (12.23 acres), a corrected special warranty deed and a quit-claim deed for Parcel # 25237-005-00 (9.46 acres), and a Second Amendment to Ground Lease terminating the lease documents
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND: Transitions Life Center & Community (TLC) is a privately funded nonprofit organization whose sole purpose is to provide a safe, caring, and enriching community for adults with physical and educational disabilities. On November 3, 2015, the City and TLC partnered on a ground lease for approximately 21.69 acres of property acquired by the City in 1994 as part of the 230kv project.
The initial term of the lease was five years with the option to renew for up to three additional terms of five years, each subject to completing phases and receiving funding. During the lease term, TLC pays a base rent of one dollar per year.
The lease requires TLC to make required improvements to the site over four phases with the option to purchase the site after TLC substantially completes all the necessary improvements. In 2017, TLC received a $600,000 Community Development Block Grant (CDBG) from Marion County to help construct improvements in Phase I. As part of the grant requirements, TLC requested that the City convey the Phase I parcel before substantially completing any required improvements.
The City amended the lease in 2017 and conveyed the Phase I parcel (9.46 acres) by a special warranty deed to TLC in 2018. The warranty deed included a reverter clause if TLC is not using the property consistent with the ground lease. The County CDBG mortgage/promissory note will be forgiven with no outstanding obligations once the grant matures on December 31, 2024.
TLC is securing funding for the remaining three phases of the project, principally the housing component identified in Phases 3 and 4. To help facilitate this process, TLC requests that the City convey the remaining 12.23 acres to TLC with no use restrictions and amend the ground lease to terminate the lease requirements. This will allow TLC to move forward with fundraising without the lease requirements and restrictions impacting its balance sheet.
FINDINGS AND CONCLUSIONS: Staff recommends conveying 12.23 acres to TLC by a special warranty deed with no restrictions, correcting the legal description attached to the 2018 special warranty deed, providing a quit-claim deed to TLC to remove the lease requirements and restrictions on the 9.46 acres (Phase 1) that were part of the 2018 special warranty deed, and approving the Second Amendment to the Ground Lease terminating the lease documents.
The Phase I improvements, including a 5,250 square-foot community center, a playground, basketball courts, sheds, a parking lot, and a large outdoor pavilion, have been completed by TLC. Over the past nine years, TLC has not only met but exceeded all the benchmarks for Phase I, demonstrating its commitment and capability to complete the remaining improvements.
FISCAL IMPACT: The vacant parcel (12.23 acres) is valued at $122,100, and the developed parcel (9.46 acres) is valued at $901,237. The entire property will still have a utility easement for the 230kv lines.
PROCUREMENT REVIEW: N/A
LEGAL REVIEW: This agenda item will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with changes
• Table
• Deny