Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
STAFF RECOMMENDATION (Motion Ready):
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Approve execution of a purchase and sale contract for the sale of 115 acres of non-aviation property at the Ocala International Airport to InSite Real Estate Investment Properties, LLC (InSite), in the amount of $12,075,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
In 2012, the City of Ocala established the Ocala Business Park (Park) at the Ocala International Airport (Airport). A $4 million City investment, the Park consists of approximately 447 acres of property on the west side of the Airport, south of State Road 40, and within three miles of I-75. The Park is served by SW 67th Avenue.
Since the Park was created, the City has sought to sell non-aviation property, including the 115 acres of land (Property) considered in this request, to qualified, interested industrial developers.
In early 2023, InSite Real Estate Investment Properties, LLC notified the City of its interest in the Property. InSite is a national development company with successful developments throughout the southeast that is looking to expand into the Florida market.
Privately held and headquartered in Oak Brook, Illinois, InSite acts as developer, owner, and operator of industrial, office, and retail investment property. According to their leadership, InSite has completed over 600 projects in over 40 states, ranging from 2,000 to 2.6 million square feet and from $1 million to $250 million in value. Specific to the industrial development, Insite focuses on build-to-suit developments for public and private investment-grade companies in primary, secondary, and tertiary markets across the country. A list of recent notable clients includes Kroger Company, PepsiCo, General Motors, Penske Logistics, and Ford Motor Company.
Both the Federal Aviation Administration (FAA) and Florida Department of Transportation (FDOT) have completed their respective property release processes. All parcels so released appear on the Airport Layout Plan attached. As a condition of the property release process, the property must be sold at least at fair market value and its use shall continue to be restricted to activities and purposes compatible with Airport operations. To ensure compliance with these conditions, the City is required to provide FAA and FDOT with details regarding any future disposition of the Property.
The results of a property appraisal conducted by Steven Albright in July 2022 established the Property's fair market value to be $75,000 per acre. For this current proposal, InSite is providing an certified appraisal showing the property to be valued at $105,000 per acre.
FINDINGS AND CONCLUSIONS:
If the sale of the Property is approved, InSite agrees to deposit earnest money in the amount of $57,500 into an escrow account with First American Title Insurance Company within three business days of the effective date established under the Purchase Contract.
The Airport Advisory Board (Board) recommends against the sale of this property. The Board prefers leasing property rather than selling property. The Board stated that if the City decides to sell, they recommend selling at fair market value at or above the $100,000 per acre verified by an appraisal no more than 30 days old.
FISCAL IMPACT:
• Agreed sales price: $105,000 per acre for a total of $12,075,000.
• No broker fees are 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. When the transaction is complete, a budget resolution will be presented to Council to appropriate the revenue.
PROCUREMENT REVIEW:
This purchase and sale contract has been reviewed in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This purchase and sale contract has been reviewed and approved for form and legality by the City Attorney, William Sexton.
ALTERNATIVE:
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Deny