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Item R2County of Monroe <r BOARD OF COUNTY COMMISSIONERS � Mayor David Rice, District 4 IleOI1da Keys ��x t t 0. Mayor Pro Tem Sylvia J. Murphy, District 5 Danny L. Kolhage, District I P f,< George Neugent, District 2 a Heather Carruthers, District 3 County Commission Meeting May 16, 2018 Agenda Item Number: R.2 Agenda Item Summary #4230 BULK ITEM: No DEPARTMENT: County Administrator TIME APPROXIMATE: STAFF CONTACT: Lisa Tennyson (305) 292 -4444 NA AGENDA ITEM WORDING: Discussion and direction regarding the potential acquisition of the Murray Marine property on Stock Island in order to provide a shore side facility for a mooring field in Boca Chica Basin and preserve recreational working waterfront in Monroe County. ITEM BACKGROUND: The subject parcel is located at MM 5 on US 1. The 6 -acre site consists of almost 2 acres of upland and 4.5 acres of privately owned bay bottom. The property will advance several important priorities: • Provide a mooring field shore side facility: The parcel is adjacent to Boca Chica basin and provides the requirements and additional amenities for a shore side facility for a mooring field. The basin is a popular site for illegal anchorages that have degraded the vulnerable and resource -rich basin. A mooring field will stop further degradation and protect the basin's seagrasses and environmental resources by managing vessels and ensuring proper disposal of sewage. It will also help alleviate the problems of inappropriate access, trespassing and trash associated with the spit at the end of Laurel Avenue. • Protect /preserve recreational working waterfront: Located on Stock Island, this is an operational marina with almost 200 wet and dry slips (including covered boat storage), a boat ramp, fixed docks, dingy docks, fuel dock, retail space, repair shop, and bathrooms. • Provide a boat ramp: Provides an alternative to the FDOT boat ramp at MM 5 that is rendered almost useless to the public because it provides no parking. The parcel is listed for sale on the MLS for $8 million. State law requires that two appraisals be obtained on the property before a purchase over $500,000 can be made. If the negotiated purchase price exceeds the average of the two appraisals, the purchase can only be approved by an extraordinary (supermajority) vote. The owners have indicated their willingness to enter into an installment contract in which the County will make payments over time. PREVIOUS RELEVANT BOCC ACTION: Board direction to identify site for a shore side facility for a mooring field in Boca Chica Basin. CONTRACT /AGREEMENT CHANGES: NA STAFF RECOMMENDATION: Direct staff to negotiate an option to purchase contract for future consideration by the Board. DOCUMENTATION: Murray Marine Acquisition Consideration Presentation May 2018 BOCC 4 FINANCIAL IMPACT: Effective Date: Expiration Date: Total Dollar Value of Contract: TBD Total Cost to County: TBD Current Year Portion: Budgeted: Source of Funds: 304 fund CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: Yes Grant: County Match: Insurance Required: Additional Details: If yes, amount: TBD WE REVIEWED BY: Bob Shillinger Completed Budget and Finance Completed Kathy Peters Completed Board of County Commissioners Pending 05/08/2018 9:57 AM 05/08/2018 10:01 AM 05/08/2018 2:38 PM 05/16/2018 9:00 AM r,,rray Marine 0 0 Consideratior- mv w Monroe County Office of County Administrat Presentation to BOCC May 2018 1 Packet Pg. 27 Ills "Florida provides miles and miles of coastal and inland waters for the use and enjoyment of Floridians and visitors to the state. 1' to t ,n n: b and bo EL I €` l vital € I .r t in pu blic access to and eta ne �t r '" £` €fi g ' � €_ ��,� c ast�.�_� € ,€ i e, t. ak € .win_ u a e€ . win Currently public access is being displaced by developments that favor of a small segment of the population. This Mend has affected commercial working waterfronts and limits opportunities for recreational use of the state 's coastal resources. Current state and local policy options have not been sufficient to arrest and reverse the Mend. " PUBLIC TO PRIVATE CONVERSIONS OF MARINAS, BOAT RAMPS, AND BOATYARDS IN FLORIDA: STRATEGIES TO ADDRESS DIMINISHING WORKING WATERFRONTS AND WATERWAY ACCESS IN FLORIDA- Conservation Clinic Center for Governmental Responsibility University of Florida Levin College of Law Monroe County is experiencing the loss and redevelopment of waterfront marine facilities and their associated businesses and employment. A limited supply of waterfront land and an increasing demand by different uses is leading to loss of the "working waterfront, " which includes commercial marinas, boatyards, wet and dry storage, fish houses, commercial fishing vessel dockage and marine - related industries such as boat dealers, boat repair and maintenance services, commercial fishing and tourism. The current trends are conversion of waterfront to non -water dependent uses and privatization of waterfront reducing public water access. The loss o irorking irater ro 2t in the K evs has the potential to 2ega irelV impact the region,` eco 2omv as a irbole, a,5 irell as its oirn local economy'. 'he loss O 'P ubliclv accessible irate f fio nt irill loin =er the atialitv of l �- exper e iced by residents and risitors ref' : onroe Counly'. Monroe County Marine Management Strategic Plan 2005 Ills Table o on en s Subject Parcel Property Description Subject Parcel Assets Benefits of Acquisition Subject Parcel Aerial Subject Parcel Attributes Comprehensive Plan: Preserve waterfront access Communikeys Plan: Provide /Improve waterfront access Subject Parcel Proximity to Boca Chica Basin Subject Parcel Provides Requirements for Shoreside Facility Subject Parcel Proximity to FDOT Boat Ramp on MM5 Map of Boat Ramps in Lower Keys Public Marinas in Key West Public Marinas in Marathon and Islamorada Economic Value of Recreational Boating in Keys Subject Parcel Revenue and Expenses Subject Parcel Acquisition Cost Subject Parcel Photos Acquisition Goal 'Subject Parcel: Property DescriptIA"j-1111L Parcel Name Murray Marine Owner of Record Murray Marine Sales and Service, Inc. Locati on : 5710 Overseas Highway, Stock Island Type of FacilitX Commercial Marina Zoning Mixed Use FLUM Designation Mixed Use Commercial Tier Designation Tier 3 Year Built: 1963 : -' Subject Parcel: Assets 6.4 acre site 1.85 acres upland 4.52 acre basin (private bay bottom) Deep channel access Close to Boca Chica Basin Covered and uncovered dry racks 182 racks /slips ( -43 wet slips) Two station fuel dock Boat ramp Concrete seawall, wood fixed an floating docks 3 buildings, total of 12,721 sf (Retail /office, full - service repair shop, and boat barn) Bathrooms 22,000 pound fork lift Benefits of Potential Acquisition House a Shore Side Facility for Mooring Field to Protect our Environment Provides a space and the necessary amenities for shore side facility for a mooring field in the Boca Chica Basin to protect seagrass and resources, manage vessels, and ensure proper disposal of sewage. Alleviates the problems of inappropriate access at the end of Laurel Avenue, with the associated trash, trespassing, crime, etc. Protect Public Waterfront Access for Our s Preserving boating access facilities like marinas /boatyards /boat ramps ensure public access to the water. Thi is an important public purpose in coastal communities. _u Florida Supreme Court affirmed in a decision last year that public marinas area public purpose, that they meet the transportation and recreational needs of coastal communities, and that they help ensure waterfront access. Cities of Key West and Marathon, and the Village of Islamorada each have public marinas — well -run, with consistent policies and rates — and are the hearts of their communities. Provide a public Boat Ramp for Our s Adds to stock of publicly owned boat ramps. Nearby state boat ramp provides no parking. Maintain availability of wet b slips, s Our Citizens 100% of the 180 wet and dry slips remain available and affordable to the public. _u Amenities such as fuel, ice, marine supplies, ship store. Local boat repair facility means less boat trailer travel on highways for repairs. -' Subject Parcel: Aerial View I 10, .....::... I Packet P g. 2754 -' Subject Parcel: Property Attributes N Packet Pg. 2755 om rehensive Plan: "Preserve Waterfront A R.Z Ills p ' Acquisition is consistent with Comp Plan: Objective 217.1 Monroe County shall adopt and implement incentives and criteria to encourage the preservation of ) public access to the na waters of the State, 2) commercial fishing ses and 3) recreational and commercial working tefo t uses, as defined by Section 342.07, F.S., excluding transient uses [§ 163.3178(2)(g), F.S.] Public WaterAcacaess means public access to the waterfront, including but not limited to beaches, shorelines, marinas, boat ramps or other water -orien facilities. Access may be pedestrian or by bicycle, vehicle or vessel. Public water access may also mean access to the upland from the water. Recreational and Conintercial Working Waterf o t means a parcel or parcels of real property that provide access for water- dependent commercial activities, including hotels and motels as defined in the Florida Statutes, or provide access for the public to the navigable waters of the state. Recreatio) and commercial working waterfronts require direct access to or a location on, over, or adjacent to a navigable body of water The tern includes water - dependentfacilities that are open to the public and offer public access by vessels to the waters of the state or that are support facilities for recreational, commercial, research, or governmental vessels. These facilities include public lodging establishments, docks, wharfs, lifts, wet and dry marinas, boat ramps, boat hauling and repair facilities, commercial f s°hing facilities, boat construction facilities, and other support structures over the water. As used in this definition, the tern "vessel" has the same meaning as in the Florida Statutes. Seaports are excludedfrom the definition. CommuniKe s Plan: Provide /Improve Waterfront Access" Acquisition advances goals expressed by community in their Liveable CommuniKeys Plan: Objective: Provide and improve waterfront access. Community Needs: Public access to the waterfront N'' • �,,,,illl s Plan: CommuniKe �_ Y "Provide /Improve Waterfront Access" Analysis of Community Needs: Stock sl is in i iWpo visua and fun ctiona l access to the water' Ltd2g to accommodate t the ti s of mar indust s s and the c ti l need of re sidents and visitors Pub lic owners i waterfro t lso needs to con sidered , t ensure preservation water cc ss for the lic in t it Action Item: Work with private landowners and developers to voluntarily set aside access (e.g., through easements), build access facilities ( harborwalk, boardwalks, i ramps, or boat slips for pub lic s) facilitate t lic ac _ qu isiti on of iden tified loca Packet Pg. 2758 Parcel: Proximity to Boca Chica Basi (site for a potential mooring field) Subjec parcel ❑ With diminishing waterfront access, there are climbing numbers of unmanaged nearshore anchorages. ❑ With the expansion of nearshore anchorages come social and environmental impacts in the form of crowding, crime, noise, trash, decreased water quality, and damage to marine resources. Boca Chica Basin -' Subject Parcel: Shore Side Facility Mooring fields are recommended in the Monroe County Comprehensive Plan, Monroe County Boating Management Plan, and the Florida Keys National Marine Sanctuary Plan. Mooring fields require an associated shore- side access and service facilities. Subject parcel provides the minimum requirements for a shore side facility, enabling the County to develop a mooring field in Boca Chica Basin: Shore side access Dinghy docks Trash receptacles And non - required amenities: Mooring field manager office Restrooms Bike Racks Room for a Pump out Dock Photos of damage caused by unmanaged anchorage and harmful anchoring and mooring techniques Photos of scarring and swing circles from ground tackle and boat keels Subject Parcel Boat Ramp State -owned Boat Ramp II I I Boat Ramps in Lower Key s (MM1 -15 �] t� ff3 Key Haven BDrat Ra C (ImMed parking) Q6 Boat ramps are disappearing; as they are associated with marinas and boatyards being sold to developers for redevelopment to highest and best use, access has decreased. Very few offer parking or trailer parking. I Public Marinas in Keys City Marina at Garrison Bight (Key West) Key West Bight Marina at Key Wes Historic Seaport 245 slips, liveaboards, recreational, transient long term and short term, 24 hr security, power, water, trash removal, pump out, Bathroom, shower, laundry facilities, boat ramp, trailer storage Publicly owned and operated 20 acres, 33 deep water slips, Transient dockage, daily, monthly, dinghy docks, 24 hr security, power, water, wifi, trash removal, pump out, bathroom, shower, laundry facilities, ice, gas /diesel Publicly owned and operated Packet Pg. 2763 ;,- Public Marinas in Keys Plantation Yacht Harbor Marina Founders Park (Islamorada) 83 slips, daytime dockage, liveaboards, recreational, transier long term and short term, fuel, power, water, wifi, trash removal, pump out, Bathroom, shower, laundry facilities, trailer parking, parking Publicly owned and operated N Economic Significance of Recreational Marine/Boating Indu In Monroe Boating registrations: 2016: 29,106 Increased numbers of boating registrations means increased demand for recreational access. Monroe one of the top ranked destinations for marine recreation from visiting vessels registered in other states. Economic impact of registered boaters in Monroe: $255M... direct spending (marina services, restaurants, recreation, repair/maintenance, insurance, g as , retail trade wholesale I I trade) plus multiplier for boater spending. Tab 1@ 3 Eec@r_t Trnids Li 13 3-A-Rela1e-d SAI@s (51 For Top Ten CoaRfies FY 20 15 vs. F1 2006 Comity N 19 ($) 2008 Ind % Chang 20 15 vs. 2000 Ercmrd 515 E5235&_, 51,713.351,1_ 11 %0 Pinel m 3308,153,165 375.743. 18 1 0 Cade s3.5,6,1 2., 6 8 3 4 S8. 0 U7. C 16 Fats Etach M833 143 6�&OL& 7 740 1 -al�e W'qatee S37 ,AD 2:4,3S- 31 S1 90 1 4 7 1.-15 3 2 C 3.8 1 C on e. Natn 5253.8 3-1 13 3 :5,E11; 7 f I ,1 .9E 1 9 E0.59S. -:7 UO-groe S1067,23D 653 JEO � 11 Collier S1­'�41 �9 I E+QC ..CZ7 4� Top - enCxnbes 13,MOB5,667 34,412,452,259 -1,71 f9Qflda TTY. _91 5� W'Ce' - . 1i J c _'� 'AL-.=Lx t a ra' 'Yr kt EW7 C�ra:-i 5a ;" D a lz'e r= Lenzy�rcli� M2 �Lcn' ixav - rzfr 6 u j.: P rie 30 e Fu cl=!;�e RfL7'ai vcx 233 Pvm n'd 1 01 �1 From: Recreational Marine Industry — Relative Growth and Economic `MiEiiP 2765 2015 by Thomas J Murray and Associates, February 2016 I From: Recreational Marine Industry — Relative Growth and Economic `MiEiiP 2765 2015 by Thomas J Murray and Associates, February 2016 ,:- Subject Parcel: Economic Activity RECONTRUCTED OPERATING EXPENSES STATEMENT 2017 2016 ESTIMATED 2018 REVENUE Dock & Storage $434,940 $422,871 $545,000 Gas $598,900 $458,644 $600,000 Parts $731,043 $652,171 $735,000 Ship Store Accessories $ 55,160 $ 41,780 $55,000 Sundries $ 52,872 $ 65,388 $55,000 Bait $139,746 $115,755 $140,000 Labor $277,214 $242,533 $277,000 Tackle & Dive $38,027 $34,835 $39,000 Ramp Fee $3,639 $3,318 $3,600 Ice $27,219 $14,018 $27,000 Miscellaneous $2,582 $1,652 $2,500 Tournaments $1,507 $11,190 $10,000 Total 42,362,849@00 42,064,155@00 42,489,100@00 DIRECT EXPENSES Gas $494,821 $359,814 $495,000 Parts $526,087 $550,962 $550,000 Sundries $49,485 $42,611 $49,000 Bait $131,896 $120,737 $132,000 Payroll / Labor & Payroll Tax $285,631 $300,278 $290,000 Tackle & Dive $70,607 $62,503 $70,000 Ice $18,370 $8,328 $15,000 Miscellaneous $52,448 $23,090 $52,000 Total 41,629,345.00 41,468,323.00 41,653,000.00 OPERATING EXPENSE Casual Labor $4,391 $5,160 $5,000 Freight and Delivery $1,908 $435 $1,000 Insurance Expense (all sources) $113,120 $115,243 $114,000 Lift Expense $11,204 $10,929 $11,000 Office $4,949 $3,007 $4,000 Professional Fees $11,375 $16,400 $14,000 Real Estate Taxes $32,304 $33,291 $33,000 Repairs and Maintenance $13,394 $48,757 $20,000 Salaries (excluding officers) $21,527 $26,306 $22,500 Supplies $4,085 $1,770 $2,000 Uniforms $4,296 $4,157 $4,300 Utilities $24,994 $21,990 $24,000 Water & Sewer $16,780 $20,604 $17,000 Total 4264,327.00 4308,049.00 4271,800.00 Summary of Net Earnings: • 2016: $287 • 2017 $469 • 2018 (est) : $564,300 Packet PE-2766 ,,- Overview of Project Cost Listed Sale Price: $8M. Two Appraisals in April 2018. Owners are willing to accept payment over time. Profitable turn key operation with revenue generation from marina activities - -wet slips, dry slips, ramp use, pump out, fuel sales, parking. Additional revenue from mooring field monthly payments. Option to lease the repair shop. Operation /management: contract with third party /private company to operate /manage the facility or do in- house. Boater fees and state grants to pay for improvements, on -going operations /maintenance. T11 . 21 Acquisition of Subject Propert y Acquisition objective: Put a valuable parcel of recreational working waterfront in the public domain and preserve it in perpetuity for public waterfront access for our citizens.