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Item Q2 �5 Q2 I`� County of Monroe �y,4 ' �, "tr, BOARD OF COUNTY COMMISSIONERS County �a� Mayor Michelle Coldiron,District 2 �1 nff `ll Mayor Pro Tem David Rice,District 4 -Ile Florida.Keys Craig Cates,District 1 Eddie Martinez,District 3 w Mike Forster,District 5 County Commission Meeting March 17, 2021 Agenda Item Number: Q.2 Agenda Item Summary #7785 BULK ITEM: No DEPARTMENT: County Attorney's Office TIME APPROXIMATE: STAFF CONTACT: Paunece Scull (305) 295-3170 None AGENDA ITEM WORDING: Approval of a Resolution authoring sale of deed-restricted County- owned parcels on Duck Key that were acquired for density reduction purposes. ITEM BACKGROUND: As part of the County's land acquisition program to address potential liability for takings claims once the State prohibits the issuance of further ROGO allocations, the Board purchased vacant lots on Duck Key. On October 16, 2019, the Board had previously authorized the County Attorney to initiate the statutory process for disposing of County owned property with respect to eleven (11) county-owned, non-conservation, "density reduction lots" on the condition that they be deed restricted so that no residential housing could be built upon them (Resolution 378-2019). Pursuant to the process set forth in in F.S. 125.35, the lots were placed out for bid in December 2019. Bids were received on eight(8) of the eleven (11)parcels on January 7, 2020. On January 22, 2020, the Board approved the sale of each of the eight(8) lots all of which successfully closed. Members of the public have requested the opportunity to purchase these lots. The likely market for these lots will be adjoining property owners and the Duck Key Property Owners Association; however, the statute requires that the public be given an opportunity to bid on the lots. The County is not currently using the three lots for County purposes. Under F.S. 125.35(1)(a), the County may sell these lots through a competitive bidding process to the highest bidder if the Board determines that it is in the best interest of the County to do so. The statute authorizes the Board to exercise its discretion in determining the best use. Staff proposes that the remaining lots be put out for bid pursuant to the statutory process with the condition that the lots will come with a deed restriction prohibiting the building of any primary residential structure on each lot. The deed restriction would not prohibit the owner of an adjacent property with a principal residential structure from building an accessory structure on the adjacent lot once acquired. Staff proposes that following lots on Duck Key be advertised for sale by competitive bid with the minimum bid as follows: Packet Pg. 2813 Q.2 RE00379800-000000 - $22,460 RE00380440-000000 - $27,410 RE00383380-000000 - $24,660 The bid prices reflect a 2019 appraisal for each lot with the deed restriction, as adjusted for increase in property values, plus the County's costs incurred to re-advertise the lots and process the bids. If the resolution is adopted, staff would: (a) publish a notice of sale once a week for at least two weeks in a newspaper of general circulation within the County (i.e. The Key West Citizen) to satisfy the statutory requirement, plus other publications pursuant to County Policy, calling for bids for the purchase; and (b) review the bids and present all bids to the Board for consideration. The Board must approve the final sale. The resolution directs that the revenue from any sales should be returned to FUND 316 to replenish the land acquisition account. PREVIOUS RELEVANT BOCC ACTION: On 10/16/19, the BOCC adopted Resolution 378- 2019. On 1/22/20, the BOCC approved the sale of eight of the 11 lots. On 2/19/2020, the BOCC took no action on disposing of the remaining lots. CONTRACT/AGREEMENT CHANGES: None STAFF RECOMMENDATION: None. DOCUMENTATION: Duck Key Rebid Resolution FINANCIAL IMPACT: Effective Date: 3/17/21 Expiration Date: n/a Total Dollar Value of Contract: n/a Total Cost to County: Advertising Costs Current Year Portion: n/a Budgeted: n/a Source of Funds: n/a CPI: n/a Indirect Costs: n/a Estimated Ongoing Costs Not Included in above dollar amounts: n/a Revenue Producing: Yes If yes, amount: TBA Grant: n/a County Match: n/a Insurance Required: n/a Packet Pg. 2814 Q.2 Additional Details: N/A REVIEWED BY: Bob Shillinger Completed 03/02/2021 12:35 PM Bob Shillinger Completed 03/02/2021 12:35 PM Purchasing Completed 03/02/2021 12:39 PM Budget and Finance Completed 03/02/2021 2:40 PM Maria Slavik Completed 03/02/2021 3:40 PM Liz Yongue Skipped 03/02/2021 3:25 PM Liz Yongue Completed 03/02/2021 4:44 PM Board of County Commissioners Pending 03/17/2021 9:00 AM Packet Pg. 2815 Q2.a RESOLUTION NO. -2021 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, AUTHORIZING THE COUNTY ATTORNEY TO INITIATE THE STATUTORY PROCESS FOR DISPOSING OF THREE (3) VACANT COUNTY OWNED LOTS ON DUCK KEY PROVIDED THAT THE LOTS ARE DEED-RESTRICTED TO PROHIBIT THE CONSTRUCTION OF PRINCIPAL RESIDENTIAL STRUCTURES THEREON AS PART OF THE COUNTY'S DENSITY REDUCTION PROGRAM. 0 WHEREAS, in 2016, the Board of County Commissioners (the "BOCC") initiated a Q Density Reduction Program to purchase development rights from the owners of private property in anticipation of the State's expected cessation of new development once the current pool of Rate of Growth Ordinance (ROGO) allocations is exhausted; and WHEREAS, the goals of the County's Density Reduction Program are to 1) reduce ) ongoing development pressures and the resulting effect on hurricane evacuation clearance times, — 2)reduce the demands on public facilities and infrastructure,and 3)protect property owner rights, U) thus ultimately avoiding unnecessary costs associated with defending property rights claims; and c WHEREAS, the BOCC has an obligation to review County owned property and ensure it is being maintained at its highest and best use; and WHEREAS, since 2016, the BOCC in cooperation with the Monroe County Land Authority purchased eleven (11) density reduction lots on Duck Key; and WHEREAS, the BOCC previously disposed of eight (8) of these eleven density reduction lots pursuant to Resolution 378-2019; and c WHEREAS, the County currently owns three (3) vacant density reduction lots on Duck 0 Key, identified with parcel ID numbers: RE00379800-000000, RE00380440-000000, and RE00383380-000000; and -� WHEREAS,the BOCC finds that the best and highest use of the three(3)County owned density reduction lots located on Duck Key, Florida, is to offer the parcels for sale with a deed restriction prohibiting the building of a residential structure on the parcel; and WHEREAS, based upon a 2019 appraisal for each lot, as adjusted for inflation, and the County's administrative and advertising costs, the BOCC finds that the minimum bid it will accept for each lot will be: RE00379800-000000 - $22,460 RE00380440-000000 - $27,410 RE00383380-000000 - $24,660 Packet Pg. 2816 Q2.a WHEREAS, the deed restricted parcel will be offered for sale to the highest and best bidder pursuant to the requirements set forth in F.S. 125.35(1)(a); and WHEREAS,the sale of these three (3) deed restricted parcels is consistent with Policies 102.4.3 and 102.4.5 of the 2030 Monroe County Comprehensive Plan; and WHEREAS, individual property owners on Duck Key, have expressed an interest in acquiring at least some of the remaining subject parcels; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: 0 Section 1: The"Whereas" clauses set forth above are incorporated herein as findings by the r- Board. Section 2: The County Attorney is authorized to initiate the process set forth in F.S. 125.35(1)(a) to dispose of three (3) County owned density reduction lots on Duck Key with the following real estate numbers: RE00379800-000000, RE00380440-000000, and RE00383380-000000. — Section 3: The advertisement shall inform prospective bidders that each lot will be subject c to a deed restriction prohibiting the construction of a principal residential structure on it and that the minimum bid for each lot shall be: 0 RE00379800-000000 - $22,460 RE00380440-000000 - $27,410 RE00383380-000000 - $24,660 Section 4: Any revenue derived from the sale of these lots shall be deposited to Fund 316, the fund used to pay for land acquisitions under the density reduction program. c Section 5: This resolution shall take effect upon adoption. 0 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the 17th day of March, 2021. Mayor Michelle Coldiron Mayor pro tem David Rice Commissioner Craig Cates Commissioner Michael Forster Commissioner Eddie Martinez 03 BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA BY: Mayor Michelle Coldiron (SEAL) Packet Pg. 2817 ATTEST: KEVIN MADOK, CLERK As Deputy Clerk N c c 0 c 0 c c Packet Pg. 2818