11/03/2015 (4) - Laserfiche WebLink

Home Browse Search

INDIAN RIVER COUNTY OFFICE OF MANAGEMENT AND BUDGET PURCHASING DIVISION DATE: October 19, 2015 TO: BOARD OF COUNTY COMMISSIONERS THROUGH: Joseph A. Baird, County Administrator Jason Brown, Director, Office of Management and Budget Chris Mora, P.E., Public Works Director FROM: Jennifer Hyde, Purchasing Manages " SUBJECT: Update to Sealed Bid Sale of 5940 26th Street — Bid 2015042 BACKGROUND: On September 22, 2015, the Board ratified the highest of three sealed bids submitted for the purchase of 5940 26th Street. The property had been purchased for right-of-way, and the remaining parcel determined sufficient for sale. The three bids received were in the amounts of $14,572.00, $50,000.00, and $106,000.00. On October 14, 2015, the awarded bidder, Mr. Tuan Nguyen provided written notification that he no longer intends to close on the property, as the depth of the lot is not as he interpreted from the legal description. The second high bidder is no longer interested in the property for their submitted bid price, and Staff believes the property is more valuable than the amount submitted in the third bid. Deposits placed by the non -awarded bidders were returned to them when the Board ratified the high bid, in accordance with the bid documents; therefore neither have an obligation to hold their bid. As a result, the property must again be advertised for sale, either by sealed bid or auction. Mr. Nguyen has verbally requested a refund of his $1,000 deposit in escrow placed at the time of his bid. The bid documents state "if the winning bidder fails to close within the prescribed time period, the security will be retained by the County, not as a penalty, but as liquidated damages." The cost of the newspaper advertisement required by Statute for the sale of real property was $267.30. Monthly utilities for the property are approximately $75, with a minimum of two additional months due by the County before a new sale can be completed. Additionally, significant staff time was allocated to this sale, both by Purchasing Staff making the house open for viewing by prospective buyers and by County Attorney Staff to assist in the preparation of documents necessary for closing. As the failure to close is not due to any error on the County's part, Staff suggests it is in the County's best interest to retain the security as liquidated damages. FUNDING: Expenses for maintenance and sale of the property are deducted from Traffic Impact Fees/District II/ROW 26th Street, 43rd Ave to 66th Ave account #10215241-066510-06011. The security submitted by Mr. Nguyen 141