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Item 8B - Bennett PropertyCITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM# 8B DECEMBER 14, 2015 AGENDA ITEM: Bennett Property Development Options Discussion SUBMITTED BY: Nelson VanLiere, City Manager DATE: December 3, 2015 BACKGROUND: At the November 23ro City Commission meeting, Staff was asked to provide information on the various options for developing the Bennett Property. It is important to decide as soon as possible the intended use of the house located on the property if acquired. This is necessary so that the City can appropriately secure the property once purchased and take steps to fund the development costs. For discussion purposes, I have prepared a list of some of the options that were discussed with cost estimates for review. These are simply estimates that may help decide the ultimate disposition of the property should the City go forward with the acquisition. These suggestions are not the only options to consider. Any combination of development options that the City Commission is interested in can be evaluated more thoroughly. It is also important to remember that the City Commission authorized staff to develop a park design for Tideviews including optional amenities in the area of the Bennett Property. The City budgeted $25,000 to contract for this design and the project is currently unde1way. Some of the options for development to consider are: Option 1 -Raze the house and restore to green space. $5,000 to $10,000 Public works and the building department estimate that razing the house would cost from about $5,000 to $10,000. Once removed, we would sod the area. This option would allow the City time to consider how they may want to use the property in the future and to accumulate funds for that development. Razing the house would also eliminate the need to secure it or maintain it. Option 2 -Raze the house and build a Community Center. $600,000 plus 50,000/yr This option depends on the size and an1enities of the Center. As an example, a 3,000 sq ft facility at $200/sq. ft would run about $600,000. Parking and neighborhood acceptance as well as the overall need for the Community Center would need to justify this option. Grants may be available to partially fund this option; however it would be a significant unplanned expense for our budget which would have to be amended. Once built, the center would have estimated annual operating costs of an employee, utilities, insurance and maintenance totaling about $50,000 per year. The costs for a Center may be partially off-set with rental fees. Rental fee revenues would not be considered a reliable funding source until a sustained demand was demonstrated. Option 3. -Remodel the house and use it to house a resident security officer. $20,000 This option would require renovations and modifications. We may need to spend $20,000 initially and then make necessary modifications for an officer to inhabit. The City AGENDA ITEM# 8B DECEMBER 14, 2015 would need to become the landlord for the resident officer. We would need to investigate the personnel issues that are involved in this option. There is also the potential that no officer would take the offer and that from time to time, the house may be vacant. This option would potentially add a layer of security to the area and may help visitors feel more inclined to use the park. The question of the need for an officer in this neighborhood should be answered by the neighborhood through their input. The effectiveness of an officer on site should be considered. Option 4. -Split the property, develop the open area as part of an access to the park and sell the house. All proceeds used for park development $0 This option has the potential of returning some of the spent funds back to the City after a period of time and to provide those funds towards the development of other amenities within the park. This option would give up the control over that portion of the property and take away the flexibility to develop the park as described in the options above in the future. This option would also require the City to either sell the house as is, or spend some amount of funds fixing it up before selling. The net proceeds of the house obtained by a public auction depend on many factors. The City may have to decide on a minimum bid to accept. If the property is disposed of in a public auction, we would also lose control of the type of neighbor we would have. This option may lead to the installation of a fence along the property line. The development of the entrance to the park could be paid for with the net proceeds of the sale so that the City does not have to spend additional funds, depending on the desired level of development. BUDGET: The purchase of the property has an approved budget of $200,515. Upon the acquisition of the property, staff should be instructed to prepare a midyear budget ordinance to fund the development of the property. Options for the layout of Tideviews Park are currently under design with a budget of $25,000. The proposed featured amenities of the park may impact the decision of what to do going forward. RECOMMENDATION: Once purchased, The City should move quickly to raze the building as described in Option 1. Then we should move slowly, evaluate the design currently being worked on and listen to the community about their needs and opinions of what will be most beneficial to the surrounding neighborhoods. We would also then be able to take time to determine the best way to fund future development. With time and community input, the City may be able to obtain grant funding for improvements. REVIEWED BY CITY MANAGER: