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L. Growth Management County of Monroe Growth Management Division Marine Resources DepartmentBoard of County Commissioners Suite #420 Mayor Charles McCoy, Dist. 3 2798 Overseas Highway Mayor Pro Tem Dixie Spehar, Dist. 1 Marathon FL 33050 George Neugent, Dist. 2 Voice: (305) 289-2505 Mario Di Gennaro, Dist. 4 FAX: (305) 289-2536 Glenn Patton, Dist. 5 garrett-george@monroecounty-fl.gov We strive to be caring, professional and fair DATE: 1 November, 2006 TO:Board of County Commissioners FROM: George Garrett, Director of Marine Resources SUBJECT:Site Evaluation – Latin American Bayfront Grill Restaurant BACKGROUND: It has come to the attention of the Board of Commissioners that a waterfront property located at approximately Mile Marker 107.7 is currently for sale. The property is known as the Latin American Bayfront Grill Restaurant (aka Latin American Café) and is geographically located near the “Jewfish Creek” drawbridge on the “18 Mile Stretch” leading to Florida City/Homestead. The property includes a small marina, bait and tackle shop, restaurant, two gas pumps, and three small upstairs apartments. Several individuals at the most recent County Commission meeting (October 2006) suggested that the Board should consider the purchase of this property. Purchase of the site has been suggested for a number of reasons, including that two boat access points on the 18 mile stretch will be closing as a result of road reconstruction and that waterfront access to the general public is disappearing as a result of private purchases. This evaluation was requested by the Commission and hopefully will give the Commission enough information about the site to allow the Commission to direct further action by staff. In no way does the report suggest which way the Board should make its decision – to purchase or not. Other items on the Commission agenda in October led to a direction to staff to develop a more comprehensive list of waterfront access properties, based on multiple criteria and purposes. Staff is to then bring this list of properties before the Monroe County Marine and Port Advisory Committee for their review and thorough 1 evaluation. The result will be a prioritized recommendation from the MPAC concerning potential future purchases. Much of the information provided below has been obtained from interests associated with the sale or development of the property. EVALUATION: The Latin American Bayfront Grill Restaurant is located at Mile Marker 107.7 near the Jewfish Creek draw bridge on U.S. Highway 1 / “18 Mile Stretch” as depicted in the two images immediately below. Key Largo / 18 Mile Stretch 2 Latin American Bayfront Grill Restaurant @ MM 107.7 Site Characterization: The property in question is approximately 0.625 acres in size and lies on a dredged channel leading to Jewfish Creek and the Inter-coastal Waterway.The property abuts the U.S. 1 right-of-way. Contained on the property are two, two-story concrete block buildings, containing a restaurant, bait shop, and three apartments (each on the second floor level). The buildings are located adjacent to the water and access to the Inter-coastal Waterway. The restaurant and two apartments are located in the northernmost building while the bait shop and one apartment comprise the southernmost building. In addition to the physical structures, the site has dockage, a boat ramp, three gas pumps, some outdoor seating area, and an FDEP permitted waste treatment plant, summarized below: Property Size: 27,247 sq ft / 0.625 acres (2004 Survey) Structures: 2 Concrete block (7,752 sq ft – 2004 Appraisal Report) Restaurant 3 Bait shop nd 3 2 level apartments Dockage: 370 linear feet with several T docks (Multiple slips – Number undetermined due to Hurricane Wilma damage) Ramp: Single lane – minimally improved / water depth – 4 feet Fuel:Three dispensers / 22,000 gal underground fiberglass, double walled storage tank Waste Treatment: 10,000 gal FDEP permitted Plant / Not 2010 compliant Zoning: Suburban Commercial (SC) Future Land Use: Mixed Use / Commercial (MC) Tier Designation: Tier 3 Taxable Value: $1,433,403 Appraised Value: $2,700,000 (fee simple / as is) / $3,500,000 (“going concern value”) Completed August 2004 Additional site photos are provided at the end of the document. Staff Site Visits & Meetings Staff has met with Florida Department of Transportation (FDOT) staff on several occasions concerning the Latin American Bayfront Grill Restaurant. Meetings have focused on the existence and location of a boat ramp on site and the pending loss of boat ramps along the 18 mile stretch during road widening efforts. Staff has also talked to representatives at Everglades National Park concerning the removal of ramps along the 18 mile stretch. Staff has obtained information from a real estate agent representing the owner and from Reed & Company representing the owner in a potential site redevelopment proposal. Information garnered from the latter individuals includes an appraisal report, all or portions of two Phase I and Phase II environmental site assessment reports, and an application for a Pre Application Conference with Monroe County. Other information was garnered from the County Tax Appraiser’s Office. Meetings with FDOT indicate that the boat ramp located on the subject property lies in part on FDOT right-of-way. A notice to the owner of the property was issued on September 12, 2006 requiring the removal of an encroachment (a portion of the boat ramp) on FDOT property. Other discussions with FDOT confirm that the two ramps located on the 18 mile stretch will be removed and that there are no plans for replacement. From another perspective, there is some indication that if the County were to acquire the Latin American Bayfront Grill Restaurant, FDOT would consider turning over their right- 4 of-way where that transfer did not conflict with current plans or the need to provide access to private properties such as the Restaurant or the adjacent resort condominium. Everglades National Park staff is addressing the general issue of water access to the Park during the current update to their five year plan. However, though they acknowledge that ramps will be lost along the 18 mile stretch, there are no definitive plans on the part of the Park to replace the ramps. County staff has met independently twice on site to establish accessible water depths and to take photographs of the property and its amenities. Appraisal Report As provided by the realtor for the property owner, an Appraisal Report was completed for the property in August of 2004, by Aucamp, Dellenback, and Whitney of Boca Raton. A “fee simple” and “as is” appraisal of the property placed the value of the property at $2,700,000. In addition, after significant additional analysis, the property has a “going concern value” of $3,500,000. This value considers multiple additional factors related to the business value of the property and relates the sale of other, similar properties in the Key Largo area. The Appraisal Report was completed in August of 2004 and should be reconsidered by the Board as both market values have changed in the past two years and the site has been vacant after the Hurricane Wilma event. Phase I / Phase II Environmental Assessment The Latin American Bayfront Grill Restaurant site has both underground fuel storage and above ground waste treatment plant storage facilities. As provided by the realtor for the property owner, a Phase I Environmental Site Assessment was completed for the site in August 2004 by Petro Hydro, Inc of Miami. The conclusion of the Petro Hydro report was that there was no evidence of environmental concern in regard to both soils and groundwater. However, a Phase I report generally is used to determine the extent of any potential concern based on a cursory onsite review and a review of environmental compliance databases. Typically, the existence of fuel or waste storage tanks would compel a buyer to consider additional review through a Phase II study of the site. In 2000, a Phase I and Phase II Environmental Site Assessment was completed by Properties Environmental Assessment & Remediation, Inc. The conclusion at that time 5 was that the site posed limited environmental liability. However, they found that some soil and groundwater contamination did exist from processed fuels. Since that time there have apparently been some tightness tests done on the fueling facilities, so any problems may have been resolved in the intervening time. An additional Phase I and II environmental assessment would be helpful. Planning Report Reed and Company, Development Services Inc. has completed an application for a Pre Application Conference in August of 2006 for the property owner. The application provided a request to redevelop the property, essentially as is, then to add 2,238 sq. ft. of commercial retail space, and finally to develop three affordable housing units while transferring off site the three existing market rate dwelling units. The Monroe County Growth Management Division has not held the Pre Application Conference yet. It is pending. FURTHER ACTION Staff hopes that the information provided is of assistance to the County Commission in its deliberations concerning the Latin American Bayfront Grill Restaurant. At a minimum, staff will make this property a part of the review of similar properties to be undertaken by the Marine and Port Advisory Committee at its next meeting in December. Please provide in addition any further direction that the Board wishes concerning this site. 6 Northly End of Docks Adjacent to and Behind Northernmost Building 15