Item Coversheet

CITY OF OAKLAND PARK, FLORIDA
CITY COMMISSION AGENDA ITEM REPORT


A
GENDA ITEM NO. 4

MEETING DATE: 2/21/2018
PREPARED BY: 

Kathleen S. Margoles

Community and Economic Development Director

DEPARTMENT HEAD APPROVAL:  CITY MANAGER
SUBJECT: Authorization to Purchase 1300 NE 38th Street (Omega Church)
1.BACKGROUND/HISTORY
    
 

Issue Statement: The City of Oakland Park seeks to acquire land adjacent to the downtown to support and sustain economic development in the Culinary Arts District.

 

Recommended Action: Authorize the purchase of the property located at 1300 NE 38th Street, from Omega Church International Ministries at a price of $1,600,000, plus applicable closing costs and attorney fees.

 

The CRA Plan was adopted in December 2005. Goals 5 and 6 directly address downtown redevelopment and mobility as follows:

 

Goal 5 -Build upon the planned Park Place downtown destination by concentrating higher intensity and density with mixed use development that provides for social, cultural and economic opportunities.

 

Goal 6 –Improve mobility, parking, circulation and safety and plan for multimodal transportation and transit

 

In 2006, the City/CRA was approved for funding from the Broward Redevelopment Capital Program (RCP) to acquire several downtown properties, including the property on Oakland Park Boulevard, east of Main Street, the Art Park property on NE 34th Court, and the property for the parking lot north of City Hall.

 

In November 2011, the CRA adopted a Five Year Strategic Plan that identified 12 potential redevelopment sites and capital improvements necessary to realize the full potential of the downtown, including property acquisition.

2.CURRENT ACTIVITY
    
 

On February 5, 2017, a presentation was made to the City Commission on the Downtown Mobility Plan. This plan established an overall mobility plan for the DMUD, now called the Oakland Park Downtown Development District (OPD3). The primary recommendation of the plan was to secure perimeter parking to maximize mobility within the downtown. As noted in the CRA plan, “(t)he acquisition of these properties is key to being able to provide well planned parking on the edge of the district, to providing greenspace, to creating a walkable community, aggregating properties for viable development”.

 

The City and CRA are actively engaged in potential redevelopment of the West Dixie Lots located north and south of Park Lane East and west of Dixie Highway. Should these vacant properties be developed, the City will lose access to those properties during construction.

 

Presently these lots provide parking for special events. The Omega Church property could help offset loss of this parking.   The Omega Church property is 37,113 square feet and has a building of 8,703 square feet. The City has received two appraisals for $1,875,000 and $1,503,000. The seller has agreed to a purchase price of $1,600,000.  

Staff is also considering an application for a grant under the Florida Communities Trust, Florida Department of Environmental Protection that if awarded, may be utilized towards the purchase of property for parks and recreation purchases. The grant will be subject to the City’s ability use the property for park and recreation uses. The park development is aligned with the City goal of securing quality of life for neighboring residential communities. With this acquisition the City has available multiples future opportunities including development of this property for other uses. For example, other grant opportunities that may reimburse the City for acquisition costs and/or provide the City with other civic opportunities for site development.

3.FINANCIAL IMPACT
    
 The purchase of the Omega Church property can be funded through the immediate use of the City’s cash reserves and then later refunded through future debt proceeds prior to the end of the fiscal year.   Prior to the purchase of the property, the City Commission will be provided resolution for consideration establishing the intent to later issue debt to reimburse our reserves.  The Commission has passed similar resolutions for the purchase of capital equipment and property in the past, most recently the Alster lots last year. 

 

Working with our consultants, staff will prepare a grant application to the Florida Department of Environmental Protection’s Florida Communities Trust program that, if awarded, may be utilized towards the purchase of property. 

The results of the grant application will be known this fiscal year. The amount of external financing needed may be potentially offset by grant funding Staff will work with our financial advisor to secure appropriate external financing during the summer to provide sufficient funds needed to reimburse City reserves.  A budget amendment will be offered concurrent the loan to recognize the expenditure in the appropriate accounts.

4.RECOMMENDATION
    
 Under City Charter, Article II, Section 2.16, an ordinance is required if the City Commission wishes to “acquire, by purchase or condemnation, property, real or personal, or any estate therein.”   Staff recommends the City Commission pass the ordinance on first reading authorizing the purchase of the Omega Church at the price of $1,600,000.
ATTACHMENTS:
Description
Ordinance
BCPA info
BCAP Map Record
Omega Church Contract
Appraisal 1
Appraisal 2