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APP 21 19817 BOOK 68 f'.,� � F-� TO: The Board of County Commissioners DATE: April 15, 1987 SUBJECT: Storm Grove Road Right -Of -Nay FROM: Bruce Barketty Assistant County Attorney During the October 14, 1986 meeting of the Board of County Commissioners of Indian River County, the Board approved staff's recommendation to negotiate a long-term (five- to seven-year) contract to purchase land from Mr. Paul E. Koehler for Storm Grove Road right-of-way, and to bring the results of such negotiations back to the Board for approval. Staff met with Mr. Koehler and his attorney and reached an agreement for purchase of the subject right-of-way, subject to Board approval. Because of the desire by the seller to close on at least a portion of the sale prior to the effective date of the new Federal tax law, there was a closing in escrow regarding this transaction, and all documents, including the check dated December 31, 1986 are being held in escrow by the County Attorney's Office. The transaction becomes effective only upon approval by the Board of County Commissioners. The original addendum to the contract was rendered inaccurate as to purchase price by an amended purchase price (of $5,000.00) to the original contract. Thus, there is an amended addendum submitted for your approval. The negotiated sale calls for the County to.purchase five separate but adjacent parcels for right-of-way, one purchase to be made each year. Approval of the first sale (now held in escrow) wi I I seal for the County the option to purchase the remaining four parcels at the contract price each year until 1990. This method was preferred by the Public Works Director to spread the expenditure over several years. The sum of the purchases by the County would equal 8.917 acres of additional right-of-way along Storm Grove Road between Kings Highway and U.S. 1. The County's thoroughfare plan designates Storm Grove Road as a secondary collector road with a minimum right-of-way width of 80 feet. Presently the County has a 30 -foot wide right-of-way. The terms of the contract call for Mr. Koehler to sell to the County the additional 50 feet of right-of-way along a 7,600 -foot frontage for $4,000.00 per acre, plus interest to compensate for the extended nature of the. contract. The interest is 9% simple interest computed on the outstanding balance at the end of each year. The County's Capital Improvement Program does not provide improvements to this road until: 1996-2000. Staff's original recommendation was not ,to acquire the entire parcel. at the purchase pripe of .$35,668.00, but to acquire the parcel if a long-term purchase contract could -be, negotiated. The contract presented here is agreeable to staff._ The total price --- extended over five years-with interest is^$33,818.09, less than the original proposed 1 -time payment of $35,668.00. Staff recommends approval of the negotiated long-term contract with the first amendment to the contract, which amendment accurately reflects the acreage and purchase price of each parcel. Staff recommends that the Board also approve the original addendum to the contract as amended by the first amendment mentioned above. 36