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Bou 99 PAGE 496 The experience and resuhs of selling our surplus equipment at an auction rather than sealed bids has been very successful. We have more than doubled the amount of monies received in auction as compared to sealed bids. Interested buyers and Realtors have indicated they felt the fair and best way to dispose of the properties would be through an auction. In looking at all as staff feels this approach is the best avenue to get the most interested people to participate in a successful process of selling this real property. The County would not incur any cost by using the auctioneer. They front all expenses, including advertising. Their expenses and profit are derived from a buyer's a premium which they collect above and beyond the selling price. This is standard procedure fir professional auctioneers. In an effort to select an auctioneer, staff requested proposals from the following two companies that work in Indian River County. : 1. Ron Remick Real Estate Auctions, Inc. - Vero Beach, Florida 2. Karlin Daniel & Associates, Inc. - Stuart, Florida Based on the proposals submitted, experience in similar type sales, stab and marketing plan with advertisement schedule, Karlin Daniel & Associates grades out to be the company staff feels should be selected for auction sales of the County's surplus buildings. There are two auction formats that can be used, "absolute" and "reserve". Absolute is whereby the property being sold has no minimum price or reserve. This format allows the price to be established by open and competitive bidding creating true fair market value. The reserve format is when the seller sets the price range and retains the right to accept or reject the top bid. We have been informed by the auctioneer that in the Florida marketplace, absolute auctions generally result in higher selling prices than reserve format auctions. However, the County's Attorney has interpreted Florida Statutes to forbid sale of County property using the "absolute format". Karlin Daniel has made a suggestion the old courthouse be sold subject to preservation of the east facade of the original building, thereby maintaining a "significant downtown landmark". Although somewhat restrictive to the sale of the building this could be part of the conditions to the sale if the Board feels it is significant. Based on the effort described above, staff recommends: 1. Enter into a contract with Karlin Daniel & Associates, Inc. to sell County's surplus buildings at a public auction. 2. Auction the old Courthouse and Annex as one with a minimum price of $150,000 and not add any restrictions in regard to the east facade.. 3. Auction the old State Attorney Building at a minimum price of $125,000. 4. Not offer the old Health Department Building for sale at this time due to the present extensive use of that structure for off-site conditioned storage. 5. Authorize the Board Chairman to execute all applicable documents to effect the sale. General Services Director Sonny Dean stated that staff has investigated Florida Statutes, looked at the appraisals, talked to several auctioneers and set a minimum price in order not to scare away potential bidders. County Attorney Vitunac advised the Board that if they would like to have an "absolute" auction, they would have to lower the minimum bid price to the lowest price they would accept as a bid. Commissioner Bird wanted to know if the parking lot to the north of the courthouse has been included since the 2 buildings are being sold together, and Director Dean stated that staff felt the buildings should be combined because of the parking lot issue. OCTOBER 22, 1996 28