>>REVISED<<

On May 18, 2021, City Council accepted an offer of $1.9 million from Space Coast Marinas, LLC for the purchase of three properties jointly owned by the City and CRA known as Pelican Harbor Marina, tax accounts 2832794, 2832801 and 2832800. The Buyer proposes to construct a marina, dry dock boat storage and service facility, boat launch and wash service, boat club, ship store, tiki bar with an outdoor entertainment venue, restaurant and retail amenities to include a valet service. Space Coast Marinas anticipates the capital investment to be $10-12 million with approximately 302 full-time equivalent jobs. It is important to note that Space Coast Marinas has continued discussions with Paddling Paradise to retain this local eco-tourism enterprise on site and as part of it's long term development plan.

The Seller and Buyer presented the following additional terms of note: sale is contingent upon approval of Conditional Use Permit for marina use; the City shall seek City Council approval to vacate approximately 11,197 SF of right-of-way along Maplewood Street NE; and Buyer agrees to construct and maintain a pedestrian boardwalk with public access  through a City easement in perpetuity.

During the Due Diligence Period, the Buyer engaged in discussions with City staff and other regulatory agencies to understand the feasibility of this project and purchase. The City and Buyer encountered a few challenges which necessitated additional time to work through; therefore, the Due Diligence Period (expired July 21) and the Closing Date (August 1) was extended to August 6. Additionally, the title company's requirement for a Resolution to convey the property to the Buyer necessitated the closing date to be pushed to August 6 in order for Council to hear the Resolutions.

During the Due Diligence Period, the Buyer has closed on 4200 Dixie Highway NE and the bait and tackle shop at 4210 Dixie Highway NE as previously discussed. However, the Buyer will be required to acquire additional strategic parcels and overcome other hurdles to develop this project. >>discovered that the City has an active lease agreement with Brightline for use of the City's right-of-way along Maplewood Street, for which the Buyer is seeking to vacate. The lease agreement is valid through September 30, 2022 therefore encumbering the property. The Buyer is seeking to vacate the right-of-way along Maplewood Street from Turkey Creek north to Pospisil Ave NE, in advance of the expiration of the lease, to be brought forth at a future Council meeting. Additionally, the Buyer discovered that<< the City has a recorded drainage easement along the eastern boundary of 4220 Dixie Highway NE, for which the Buyer agrees to maintain as included in the attached Resolution. >>Any development atop of the stormwater drainage pipes would increase the costs for additional landfill and prep-work due to the shallow location of the storm drains. Finally, the Buyer commissioned Ardaman & Associates, Geotechnical, Environmental and Materials Consultants to conduct a Preliminary Subsurface Soil Exploration which revealed areas of the subject property have soil conditions prohibitive to the construction of any structure over three-stories and would likely require excavation. A portion of the property requiring excavation is land that is encumbered by the lease agreement with Brightline; therefore, delaying any construction timeline related to that particular parcel.<< Similarly >>Following closing,<< the Buyer and the City work in coordination to accommodate a public access easement to retain access to the waterfront, to be recorded following site plan approval.  Finally, the City currently has a lease agreement with Brightline for use of the City's right-of-way along Maplewood Street, for which the Buyer is seeking to vacate. The lease agreement is valid through September 30, 2022 therefore encumbering the property. The Buyer is seeking to vacate the right-of-way along Maplewood Street from Turkey Creek north to Pospisil Ave NE, in advance of the expiration of the lease, to be brought forth at a future Council meeting. >>Due to this discovery, the Buyer has submitted a letter including a counteroffer of $1.7 million for consideration by Council. The letter is attached for Council’s consideration.<<