Summary
To: Mayor Gary H. Katica & Commissioners
From: JP Murphy, Town Manger
Date: 9/27/2019
______________________________________________________________________
Subject: Disposition of Ahlf Properties
Summary: Attached you'll find the appraisals for the three Ahlf Properties. The total appraised value of all three properties is $1,524,200. The waterfront parcel (2 Baybrook) is valued at $921,000. The inland parcel (7 Baybrook) is valued at $587,000. The land-locked parcel (12 Manatee) was not valued by the appraiser who ultimately decided that he could not provide a more accurate valuation than what the property appraiser has assessed it at is valued at $162,000. If you have any technical questions about the appraisal itself, Brian Holtz is available to answer those questions for you.
As to the sale of the properties, it is my recommendation that the Commission let the properties out to bid via a blind bid process for a period of at least 60 days. A blind bid would be set up so that the Commission has no personal knowledge of the bidders and only evaluates the bids based on merit and value to the town. Additionally, it would be beneficial if the blind bid process were conducted by a third party. I initially contacted Pinellas County’s Real Estate department to conduct the sale on our behalf. While they do have MLS listing ability, they do not have significant marketing resources. Pinellas County did provide the name of a vendor, CBRE, Inc, which currently is a state contract holder that would be able to better provide the services the town would be looking for. The Commission, of course, has the option to piggyback with CBRE, solicit its own vendor via a formal RFP process, utilize Pinellas County, or utilize a combination of town staff and the town attorney’s offices to conduct the bid.
As the fee for such services when procured from an outside vendor will likely exceed $35,000, the Commission will need to approve the procurement method to be used. If the Commission chooses to solicit its own vendor, staff will write an RFP and let it for a period of at least 14 days, per ordinance, then the Commission would select from the bidders at the next commission meeting. The properties will need to be disposed of and conveyed of by way of ordinance.
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Previous Commission Action: The Commission previously approved the ordering of an appraisal in advance of the disposition of the property.
Background/Problem Discussion: Mr. Ahlf enjoyed a life estate in exchange for payment of his taxes on three properties on Baybrook Dr.
Expenditure Challenges: Varies based on selection. The market rate for Brokerage Services is 5-6%
Financial Implications: The properties are appraised at $1,524,200
Recommendation: I recommend that the Commission dispose of the properties. That it uses a blind bid process to do so, and that it engages with a third party to do so due to the probability of gaining a higher price on sale based on market exposure. If timeliness is a primary concern, I would recommend utilizing the services of CBRE through the previously awarded state contract.
Proposed Motion: I move that we dispose of the Ahlf properties, further that we engage CBRE, Inc, pursuant to contract DMS-12/13-007A, and that we utilize a blind bid process, accepting bids for a period no shorter than 60 days.