Loading...
HomeMy WebLinkAbout6/8/1983Wednesday, June 8, 1983 The Board of County Commissioners of Indian River County, Florida, met in Special Session at the County Commission Chambers, 1840 25th Street, Vero Beach, Florida, on Wednesday, June 8, 1983, at 1:30 o'clock P.M. Present were Richard N. Bird, Chairman; Don C. Scurlock, Jr., Vice Chairman; Margaret C. Bowman; Patrick B. Lyons; and William C. Wodtke, Jr. Also present were -Michael J. Wright, County Administrator; L. S. "Tommy" Thomas, Community Services Director; Gary Brandenburg, Attorney to the Board of County Commissioners; Jeffrey K. Barton, Finance Director; and Virginia Hargreaves, Deputy Clerk. The Chairman called the meeting to order, and Administrator Wright led the Pledge of Allegiance to the Flag. ADDITIONS TO AGENDA Chairman Bird noted that Commission members have been contacted by the Indian River Memorial Hospital requesting their support of the Hospital's application for a Certifi- cate of Need to build additional facilities, and he -would like to add this to the agenda to determine the Commission's - position as there is a time deadline involved. ON MOTION by Commissioner Scurlock, SECONDED by Commissioner Bowman, the Board unanimously added the above emergency item to the agenda. JUIN 8 193 BOOK 53 ?Ace7 JUN 8 1983 CERTIFICATE OF NEED - INDIAN RIVER MEMORIAL HOSPITAL John Hoyt, Executive Director of Indian River Memorial Hospital, believed that the letter he sent to each Commis- sioner, is quite self-explanatory, and stated that the Hospital would appreciate letters of support either individually or collectively from the Commission. Said letter is as follows: Mr. William Wodtke County Administration Bldg. 1840 25th Street Vero Beach, Florida 32960 REF: LETTER 1 11 Dear Mr ` Gdtke : ENDORSEMENT FOR CE /radion River /Memorial Hospital 1000 36th Street * 305-567-4311 Vero Beach, Florida 32960 Executive Director D1STRl PI3029T Commissioners Administrator Attorney Personnel Public Works Community Dev. Utilities — Finance - Other CATE OF NEED APPLICATION As we are sure you are aware, the Hospital is currently working on implementing the major portions of its Long Range Plan which includes expansion of the Hospital's bed complement; major additions and renovations to ancillary and support service spaces of the Emergency Room, Operating Rooms, Radiology, Laboratory, Pharmacy, Dietary and Physical and Occupational Therapy, etc., and a Community Resource Center. These additions and expansions will provide for our community's future health care needs well through this decade. Our community continues to grow, and the Hospital has operated for periods of time at full capacity. The current construction project, which will add 53 beds to the 5th floor of the Hospital, will only temporarily relieve the need for additional in-patient beds, while not addressing the overburdened ancillary and support services at -all. These needs are particularly critical at this time, and so we have somewhat accelerated our implementation of the Long Range Plan to reflect that. The State of Florida requires the Hospital to submit an Applica- tion for permission to build facilities such as those described above, and one of the key items to the approval of Applications, such as the one which we will submit, is the support demonstrated in the Application by members of our community such as yourself. We are, therefore, requesting that you take a few moments to provide us with a letter of support for the Hospital's objective of commitment to continuing to meet the health care needs of our community through physical and organizational changes, including the additions described above. 2 l—J ® � r We have had to complete our Application in a much more rapid. fashion.than is customary. Accordingly, we will need your letters returned to us, indicating your support for our plans, no later than Friday, June 10th, as the Application must be sub- mitted in West Palm Beach and in Tallahassee no later than June 15th. We recognize the inconvenience of our request and the time constraints under which it places you, but we would urge you to do your best to assist us in this regard. Your letter need not be terribly detailed or lengthy, only recognizing our commitment and your support for it. If we can be of any assistance to you or answer any questions you may have prior to your responding, please do not hesitate to call me. We look forward to hearing from you, and we very much appreciate your efforts and assistance with regard to this matter. Sincerely, JOHN T. HOYT Executive Director MOTION WAS MADE by Commissioner Scurlock, SECONDED by Commissioner Wodtke, to adopt Resolution 83-41 supporting the position just outlined by Mr. Hoyt as to a Certificate of Need for expansion of the Indian River Memorial Hospital. 4, Commissioner Wodtke felt the intent of the Resolution was just to agree with the Hospital's objectives and their commitment to meeting the health needs of the community. Commissioner Scurlock believed that Attorney Brandenburg and Attorney Stewart could work the wording out between them. Commissioner Lyons stated that he had no objection to supporting an effort to meet the needs of the community, but he did not wish to endorse any specifics since we do have a mixture of feelings in the community about whether this should be done by this Hospital or some other organization, and he did not want to enter into that controversy. 3 JUN 8 1983 400K PAGER1910 JUN 8 1983 Mr. Hoyt stated that an expression of support in general terms would be satisfactory, and Commissioner Bowman felt that all we have to say is that we endorse their application for a Certificate of Need. THE CHAIRMAN CALLED FOR THE QUESTION. It was voted on and carried unanimously. 4 RESOLUTION NO. 83-41 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, SUPPORTING THE APPLICATION OF THE INDIAN RIVER COUNTY HOSPITAL DISTRICT TO THE STATE OF FLORIDA FOR A CERTIFICATE OF NEED. WHEREAS, the Indian River County Hospital District has made application to the State of Florida for the issuance of a Certificate of Need for the construction of additional patient beds, ancillary facilities and a community resource center, and WHEREAS, the population of Indian River County is growing rapidly and the Indian River County Hospital District must expand its facilities in order to keep pace with that growth and provide proper health care to the residents of the County, and WHEREAS, the Board of County Commissioners of Indian River County wishes to express to the State of Florida its support for the application of the hospital district for a Certificate of Need. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY that it hereby expresses its support for the application for a Certificate of Need filed by the Indian River County Hospital District and encourages the State of Florida to grant the certificate requested to the district. The foregoing resolution was offered by Commissioner Scurlock who moved its adoption. The motion was seconded by Commissioner Wodtke and, upon being put to a vote, the vote was as f o l lows Chairman Richard N. Bird - Aye Vice -Chairman Don C. Scurlock, Jr. - Aye Commissioner Margaret C. Bowman - Aye Commissioner Patrick B. Lyons - Aye Commissioner William C. Wodtke, Jr. - Aye The Chairman thereupon declared the resolution duly passed and adopted this 1st day of June, 1983. Attest: FREDA WRIGHT, Cle k APPRO AND L Bye Y II. BRANDENB BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, IDA By RICHARD N. BIRD Chairman , County Attorney JUN 81983 5 apax 53 tw 671 DISCUSSION RE BEACH ACQUISITION Chairman Bird informed the Board that after discussing with State officials the time deadline under which we are working in trying to make a decision as to how much to spend on acquiring beachfront properties and how much to hold in reserve, the and Attorney Brandenburg were able to obtain some preliminary information regarding the state appraisals of the Gordon butt property, which is adjacent to Wabasso Beach Park. He continued that, after talking with Mr. Nutt, they were given a strong impression that the appraisals were considerably below what Mr. Nutt considers to be the value of his property, and it, therefore, is very dubious that an agreement could be reached with Mr. Nutt on the purchase of that property. It was noted that the Nutt property was the main parcel we hoped to have our credits apply against under the Save Our Coast program, but it seems we have been encouraged to submit additional parcels. Attorney Brandenburg then proceeded to review the four properties listed on the agenda, noting that he has sales. contracts executed on all of them. He also submitted opinions of market value prepared by local appraisers and reported that they indicate the values are all good values except for the riverfront piece of the Stanny parcel. Chairman Bird felt it would be helpful if the Attorney took the properties one at a time and summarized the negotiated price as compared to the preliminary appraisal price. Attorney Brandenburg reported that the Southeastern appraisal re Bell Road is $1,800,000 and the sales contract we have is $1,750,000 or $50,000 below appraisal. In the same letter of opinion of market value from Southeastern, the Stanny property lying east of AlA was appraised at $650,000 and our contract is at $650,000; the riverside 6 portion, however, was valued at $90,000, and Mr. Stanny, who does not particularly want to sell this portion, has submitted a signed contract for $125,000. This is $35,000 above appraisal, and staff recommends against that purchase. Commissioner Lyons commented that some of the contracts indicate they are not recordable, and Attorney Brandenburg explained that normally a sales and purchase agreement is not recordable; some of the contracts, however, include options and rights of first refusal, and he wanted those to be recordable. Deeds, of course, are recorded on closing. Attorney Brandenburg continued that on the Golden Sands property, the contract price is $2,015.825 for the land east of AlA, and the appraiser's opinion of value is $2,250,000, or $1,953 a front foot compared to our price of $1,750, which works out to $203 less a front foot. Also included is a donation of four acres all west of AlA, which are appraised at $37,097 an acre, or $148,000, as well as a right of first refusal on the remaining 10 acres at $35,000 an acre, on which the appraiser's opinion indicates a value of $370,000. Attorney Brandenburg then reported that the oceanfront portion of the Erdo property, on which we have a contract price of $871,200, has been appraised at $930,000, or $1,921 a front foot vs. our price of $1,800 a front foot. The Erdo owners also have indicated they will donate 4 acres west of AlA valued at $32,650 per acre and will give the County an option and right of first refusal on 10.395 acres for $30,000 an acre, or $311,850, which is also below the - appraised value of the land. Attorney Brandenburg summarized that if the County were to purchase all the parcels, excluding the Stanny 7 sea 53cf 67 JUN 8 1983 BOOK. riverfront, they would be buying property at a price about $700,000 less than its appraised value. The Board then reviewed the figures for the various properties and totaled them, coming up with a total of approximately 5.2 million. Chairman Bird asked the Finance Director for the total of the net spendable dollars we have. Mr. Barton reported that through May 31st, we have $4,994,562 in cash. There are still some outstanding bills - about $10,000 - but there is still some interest accruing. We are right about at 5 million. Attorney Brandenburg pointed out that two of the properties under consideration were done by two different appraisers, and if the Board is gauging relative merits of the different buys, they ought to take into account they were appraised by different people. The Attorney asked Mr. Wagner to indicate the methodology he used in pricing the parcels he appraised. Mr. Wagner reported that on the Bell Road parcel he based his figure on four comparable sales from the North Beach area, and the range from the values varied from $1,6785 per front foot north of the parcel to $2,800 a front foot south of the parcel. There was one distress cash sale at about $1,400 per front foot, which he disregarded. Mr. Wagner stated that all the properties he estimated on were east of AlA, were zoned the same, had very similar depths, and had no utilities, and he considered $1,800 per front foot an.applicable price for the North County beach area. The Chairman then asked Attorney Brandenburg to review any basic important differences in the various contracts submitted. Attorney Brandenburg reported that, with respect to both the Erdo parcel and Golden Sands, where we have options on the property west of .SR AIA., should the county buy the 8 _ M M oceanside and not exercise the right of first refusal, the owners wants assurance they would have access through their parcel to the ocean. Chairman Bird asked if there would be dune walkovers at their expense, and the Attorney stated that the only thing the contract provides is that they would have -access and it would have to be mutually acceptable access. Under the Golden Sands contract, the county is obligated to pay half the cost of title insurance and documentary stamps whereas on the other contracts, the sellers pay the entire cost. Commissioner Lyons wished to know what kind of money this involves, and Attorney Brandenburg stated that the documentary stamps would amount to approximately $3,500; altogether he felt it would amount to less than $10,000. Lengthy discussion followed -as to measurements and areas of the various parcels, costs, etc., and the belief that the funds will only be enough to purchase three out of the four parcels. The.possibility of submitting the Howell Chapman property to the Save Our Coast Program to combine with the Erdo and Bell Road properties was reviewed, and it was noted that there are no adjacent parcels that would combine with the Golden Sands property. Commissioner Wodtke felt the oceanfront portion of the Stanny parcel is a must to add on to Round Island Park; Golden Sands was his second choice, and then just the Erdo parcel, which would leave about 1.5 million to work with. Commissioner Scurlock stated that he tended ta�favor the Stanny parcel, plus the Bell Road and Erdo parcels rather than Golden Sands. Chairman Bird felt more strongly about Golden Sands because it is closer to our overflow problem at Wabasso Beach. Commissioner Scurlock noted that wherever we develop a park, adjoining owners get aggravated, and having more 9 JUN 8 1983 Box 53 PAGE -675 JUN 81983 76 frontage provides the advantage of more area to park cars and still have them better buffered. Ed Schlitt, Realtor, informed the Board that the Erdo Investor Group holds a current mortgage on the Bell Road property, and they would be willingr to continue to hold that mortgage for the county, which would enable the county to tie the property up at the current price while waiting to see what happens with the state program. In discussion, the Attorney noted that while the mortgage they hold would be sufficient to leave the county enough cash to tie up all the properties, it is against the arbitrage rules to have notes and bonds outstanding for the same issue at the same time. Commissioner Scurlock stated that he would be in favor of a motion to acquire the Bell Road, Erdo, and Stanny properties, which would amount to approximately 3.58 million. Attorney Brandenburg recommended the Commission ask the property owners if they have anything further to say before the decision is made. Mr. Deprez, who represents the property owners of the Golden Sands parcel, concurred with Mr. Schlitt that because of the low prices right now, it is very important for -the County to acquire all the properties. He offered.further alternatives regarding an 8% mortgage and the possibility that they could buy back from the County the piece they donated. Commissioner Lyons felt the main problem is that we still have an unsolved problem in connection with Wabasso Beach Park and do not know what the state will''do with matching funds. Commissioner Scurlock agreed we need to continue our efforts in the Wabasso Beach area and pointed out the EC purchase he proposed would leave us a little over 1 million still in hand. Community Services Director Thomas noted that the one thing that has not been discussed much through any of the meetings is the development of the park property, and if adjacent property can be obtained through the -Save our Coast Program, it would be much easier to develop one large park than two that are not adjacent. Commissioner Lyons raised the possibility that if Mr. Nutt did not want to sell his property, maybe he would .buy Wabasso Beach Park and we could move further up. Chairman Bird noted this had been mentioned to Mr. Nutt, and he had indicated that he would be happy to buy the park at the price at which the state had appraised his property. Commissioner Lyons felt we would be happy to sell the park at the figure at which Mr. Nutt had valued his property. Some discussion ensued at to whether we would have the right to sell the Wabasso Beach Park property since grant funds were involved. Lengthy discussion continued as to which parcels the Board wished to acquire, and it was felt there should be Motions dealing with each parcel separately. Chairman Bird felt we should go ahead with the Stanny property, and stated that his next choice and that of the committee was Golden Sands. He did not have strong feelings one way or the other about the Erdo or Bell Road patcels, but felt whichever was chosen, we should immediately ask the state to come in and acquire the other piece. Commissioner Scurlock stayed with his original preference which was to acquire the Bell Road, Erdo and Stanny parcels. He felt if we were to buy only one or the other of the Bell Road, Erdo parcels, it would put us in a negative bargaining position in the future. 11 5.3 tAc -77 L. I r JUN a 1983 .5.� Commissioner Lyons commented that nothing adjoins Golden Sands, and he, therefore, would go along with the idea of acquiring property you might be able to add to, such as Erdo and Bell Road. Commissioner Bowman noted that on Golden Sands we would be picking up an option to purchase almost ten acres west of A14, plus a four acre donation. While the Erdo tract offers the same opportunity, it is $50.00 more a front foot, but they will pay for the documentary stamps and title insurance while Golden Sands will only pay half of those.costs. Com- missioner Bowman, however, liked the idea of being able in the future to add to what we acquire now. Commissioner Wodtke argued in favor of using our money to acquire the Golden Sands parcel because of its being located closer to Wabasso Beach Park and then let the state pick up the others which are contiguous. He liked our options on the Erdo parcel and Golden Sands. Al MacAdam, member of the Beach Acquisition Committee, informed the Board that he and the members of the committee lean strongly towards the Golden Sands parcel because of its location. If our growth continues at the present rate, it would seem the closer we can get a park to the AlA/510 intersection and have more ample land for parking, the better off we would be. Attorney Brandenburg asked Appraiser Armfield to explain the difference in value he attributed to the Erdo and Golden Sands acreage lying west of SR A1A.. Mr. Armfield explained that was purely on an opinion basis, and it related to the fact that the Land Use Plan designation for the property closer to Summerplace is LD -2 while the Erdo acreage is LD -1. If the Land Use Plan had contained the same designation for both, he would not have differentiated between them. 12 ON MOTION by Commissioner Scurlock, SECONDED by Commissioner Lyons, the Board unanimously authorized the Chairman to execute the Agree- ment for the Stanny property, oceanside only, for $650,000, and authorized the Attorney to do everything necessary to close on said property. MOTION WAS MADE by Commissioner Wodtke, SECONDED by Commissioner Lyons for purposes of discussion, to authorize the Chairman to execute the Agreement for the purchase of the Golden Sands parcel. Commissioner Scurlock stated that his feeling was that when we eventually develop the property we acquire, whatever we develop is where the people will go. Discussion followed on the distance to the various locations. Commissioner Wodtke emphasized that it is a lot easier to get utilities to the Golden Sands area. He further noted that the committee did a great deal of research on this; they favored the Golden Sands parcel, and he believed it is the logical way to go. Chairman Bird also felt strongly about acquiring the Golden Sands parcel. Attorney Brandenburg reviewed the Golden Sands contracts, explaining there are two because it is owned by two corporations. Commissioner Scurlock stated that the only way he would vote for Golden Sands was if we bought only two pieces - Golden Sands and Stanny. The Board continued to compare prices and advantages of the various combinations of properties, and Commissioner Bowman wished to know if any of the property to be donated 13 JUN 8 1983 r JUIN 8 1983 aoox � f west of AlA fronted on the river. It was explained that it backs up to grove property and does not go through to the river. Commissioner Scurlock continued to emphasize the advantage of possibly being able to acquire an entire group of properties and have one large developed facility as opposed to spreading out. Further discussion ensued re the value of the four acres to be donated, and Commissioner Wodtke noted that we could sell that acreage. Attorney Brandenburg confirmed that since it is donated property not bought with beach bonds, it could be sold. a THE CHAIRMAN CALLED FOR THE QUESTION on the Motion to purchase the Golden Sands property. It was voted on and defeated 2 to 3, with Commissioners Bowman, Lyons and Scurlock voting in opposition. ON MOTION by Commissioner Scurlock, SECONDED by Commissioner Bowman, Commissioner Wodtke voted in opposition, the Board by a 4 to 1 vote authorized the Chairman to execute the Agreement to purchase the Bell Road property and authorized the Attorney to do whatever is necessary to close on said property. ON MOTION by Commissioner Scurlock, SECONDED by Commissioner Bowman, Chairman Bird voted in opposition, the Board by a 4 to 1 vote Author- ized the Chairman to execute the Agreement to purchase the Erdo parcel and authorized the Attorney to do whatever is necessary to close on said property. 14 • Mr. Schlitt informed the Board that Mr. Deprez has indicated, if the County Commission is interested, he would be willing to split the URI tract away from the balance of the Golden Sands parcel and still donate some acreage. Mr. Deprez confirmed that he would split off the one parcel and give the same kind of an option on -it as on the ten acres on the west side and then also donate a propor- tionate share of the 4 acres and donate the balance if the County exercises the option. Attorney Brandenburg clarified that 332.32' will be .split off, on which Mr. Deprez is saying he will give us a one year option at $1,750 a front foot; he'will also donate a proportionate share of the original 4 acres to be donated, plus still give us the option and right of first refusal at $35,000 per acre on the remaining .l0 acres west of AlA, running 6 months and 6 months respectively. After some calculations, it was figured that for all the parcels, including this portion of Golden Sands, the County would be spending $4,641.450, or would have around $350,000 left. Commissioner Wodtke stated that although he had not { intended to spend all the money, he felt it is imperative to have park area in that location. Discussion continued in regard to the amount of beach frontage involved with the Golden Sands parcel, and it was noted that it is about double that at Wabasso Beach. Com- munity Services Director Thomas believed that the problem at Wabasso Beach is not the amount of beach frontage; it is - lack of parking area. Commissioner Scurlock inquired how much would be required to exercise our options and was informed it would amount to approximately $581,000, which would leave us about $181,000 short. 15 BOOK SAGE J URI PAGF Attorney Brandenburg pointed out that the donated acreage, which is valued at $35,000 an acre could bring in about $100,000. ON MOTION by Commissioner Wodtke, SECONDED by Commissioner Scurlock, the Board unani- mously authorized the Chairman to execute the agreement to:purchase Golden Sands Parcels 9 and 10 at $1,750 a front foot, with a one year option on Parcel 8 at the same price; a proportionate share of the previously dis- cussed 4 acre donation in Parcel 11 to be donated, plus a 6 month option and an addi- tional right of first refusal on the balance of Parcel 11 (10 acres) at $35,000; and auth- orized the Attorney to do whatever is necessary to close on said property. A Discussion followed as to giving staff direction with regard to submitting parcels under the "Save Our Coast" program. It was generally agreed that we should submit a strong package, amounting to ten million or more as a 2/3 match to the 5 million we have spent, and that the first priority should be to get the state to address our options as well as adjacent -properties so that wherever we have gained a foothold, we can try to make itasbig as possible. It was also agreed that time is of the essence in submitting parcels -under this program. Administrator Wright expressed concern about having to prepare a separate development plan for every -parcel submitted under the state program, which he felt would involve a lot of staff time. Some discussion ensued about the importance of moving ahead quickly, and Environmental Planner Challacombe 16 r believed it would be possible for staff to customize the plan submitted for the Nutt property to fit the other properties. Commissioner Lyons felt the importance of moving ahead on this is such that we should bring in outside help, if necessary, but Administrator Wright felt it could be accomplished in-house and stated that he will have staff move ahead as quickly as possible. Attorney Brandenburg informed the Board that he had one further item regarding the appraisal letter of market value. ,He explained that the original agreement was for a price to do the letter and then submit full backup. If the Board should decide they did not need the full formal documentation, he felt he could negotiate on.the price. MOTION WAS MADE by Commissioner Lyons, SECONDED by Commissioner Bowman, to negotiate price on the appraisal letter as suggested by the Attorney. Commissioner Wodtke wished to be sure we have fully documented backup, but stated he would rely on what the Attorney recommends. Attorney Brandenburg reported the cost of appraisal would be $3,000 apiece for Stanny and Bell Road, and Erdo and Golden Sands would be $4,500 together. The major portion of the appraiser's work and overhead goes into putting all the documentation together. He believed they would be able to reduce their price significantly, but felt the Board will have to decide what they feel comfortable with. Chairman Bird suggested the Attorney first determine just how much of a saving could be effected and then bring this information back to the Board for a decision. JUN 8 1983 Commissioners Lyons and Bowman withdrew their Motion. 17 JUN 3, 1983 BOOK 5,3 - There There being no further business, on Motion duly made, seconded and carried, the Board adjourned at 3:30 o'clock P.M. ATTEST: o pe � Clerk Chairman 18