e-agenda.NET
School Board Meeting 04-17-13 at 5pm
Agenda Item #68


Title
PR5-Former Burt Reynolds Ranch Sale and Purchase Agreement

Description
  1. On July 28, 1999 the School Board approved the acquisition of the +/- 153 acre property formerly known as the Burt Reynolds Ranch for $3,850,000.00. (See Exhibit "A")
  2. On December 16, 2011 the Budget Advisory Committee recommended that the District look into divesting the property.  On January 10, 2012,  Joseph Sanches sent a memo to the  Board  about the +/- 153 acres and staff's preparation of a Request for Proposal. (See Exhibit "B")
  3. The current enrollment projections do not show the need for additional student stations in the west Jupiter area.
  4. Due to the projected capital budget shortfall and the five year plan not showing a need for a new school in this area in the foreseeable future, it is recommended that the Board declare the +/- 153 acre property surplus so that it can be divested.
  5. School District staff has marketed the +/-153 acre parcel for approximately one year through Internet sites LoopNet and Land and Farm.com with 4395 hits and 82 views, respectively, and television and newspaper exposure.
  6. School District staff has selected K. Hovnanian T & C Homes' offer for the entire site in the amount of  $5,000,000.00. The purchase price will automatically increase by $80,645.00 per single-family residential unit if site plan is approved in excess of 62 units.
  7. The appraised value based on highest and best use is $4,040,000.00.
  8. The buyer has made a $100,000.00 earnest money deposit to an escrow account on behalf of the Board. (See Exhibit "C") 
  9. The buyer has 90 days from the effective date of the agreement to conduct the typical due diligence inspections of the property.  After the expiration of the due diligence period the buyer shall have until December 11, 2013 to obtain site plan approval for at least 62 single-family residential units on the site. The buyer may terminate the agreement if it timely notifies the District prior to the end of the 90 day due diligence period or prior to December 11, 2013 that it has not received the site plan approval.   If the buyer does not timely terminate the agreement, the $100,000.00 becomes non-refundable.
  10. Closing is scheduled for early 2014.
  11. In addition, the buyer will be responsible for all due diligence costs and all closing costs.
  12. The School District saved an estimated $250,000.00 in commission by staff marketing and negotiating in house.


Recommendation
I recommend the School Board approve a Resolution declaring the +/- 153 acre former Burt Reynolds Ranch property surplus and approve the Real Estate Sale and Purchase Agreement between K. Hovnanian T & C Homes and the School Board of Palm Beach County for the +/- 153 acres, more or less, located at 16133 Jupiter Farms Road, Jupiter, Florida; and authorize the Chairman and Superintendent to sign all necessary documents.

My Contact
Kristin Garrison (kristin.garrison@palmbeachschools.org)

Financial Impact
A sale of the +/- 153 acres will result in a positive financial impact of $5,000,000.00.


Attachment:  Beneficial Interest and Disclosure Affidavit.pdf
Attachment:  Exhibit A.pdf
Attachment:  Burt Reynolds Agreement for Sale and Purchase.pdf
Attachment:  Burt Reynolds Resolution surplus.pdf
Attachment:  Exhibit B.pdf
Attachment:  Exhibit C.pdf
Attachment:  checklist.pdf