Palm Beach County: E-Agenda

Special Meeting/Workshop - No Division Assigned

Title: RE-1 New Suncoast High School

Recommendation:

I recommend the School Board approve the Real Estate Sale and Purchase Contract for acquisition of an improved property containing 8.37 acres, more or less, Riviera Beach for the new Suncoast High School campus as herein described; approve the Management Agreement with NHPMN Management, LLC; approve a resolution declaring structure (s) located on the property to be acquired by the School Board to be unnecessary for Educational purposes, surplus and without commercial value; authorize the Superintendent and the Chairman to sign all necessary documents and authorize the Chief Operating Officer to sign all HUD related documents.

Description:

� The School Board approved the relocation of Suncoast High School and the construction of the new Riviera Beach Area High School (02-MMM) on the future expanded site of Suncoast High School.

� The new Suncoast High School (02-MMM) is included in the Five Year Capital Plan.

� The improved property is a 182 unit apartment complex located at 1805 West Blue Heron Boulevard, Riviera Beach containing 8.37 acres contiguous to the new John F. Kennedy Middle School.

� The Modernization of John F. Kennedy Middle School and the relocation of Suncoast High School require the acquisition of an additional + 32.81 acres (See Exhibit �A�).

� The School District has already acquired +14.10 of the adjusted + 32.81 acres needed.

� The Contract price for the purchase of the improved property is $8,000,000.00. The averaged appraised value of the property with a HUD encumbrance is $7,287,500.00. The averaged appraised value of the property without HUD encumbrance is $7,675,000.00.

� The contract provides for two one month extensions at a cost of $40,000.00 each.

� The Financial Impact includes one $40,000.00 extension fee in case an extension is needed.

� The School Board will commit to spend up to $50,000.00 for applications, pre-payments, fees and other matters required by HUD within the contract.

� Any additional funds required beyond the not to exceed amount will be presented to the Board to decide if they want to withdraw the contract or continue the acquisition.

� The School District will continue to operate the 182 unit apartment complex, after closing, for the remainder of the year or until the complex is completely vacated.

� NHPMN Management, LLC, a management subsidiary of AIMCO, will continue to manage the apartment complex for the School District.

� The Management fees are either 10% of the gross revenue or $52.84 per unit per month whichever is greater and should be offset by the rental income.

� Approximately 50% of the tenants will receive vouchers after the School District closes on the property and the other 50% will receive their vouchers at the end of the one year period as required by HUD.

� In order to assist the tenants, the School District of Palm Beach County will coordinate with the Palm Beach County Housing Authority who maintains a list of Section 8 properties throughout the county, the Northwest Riviera Beach Community Redevelopment Corporation and the Palm Beach County Housing and Community Development department that provides subsidies and assistance.

� A Phase I Environmental Audit has been completed. There are no environmental concerns.

� An Asbestos Analysis will be performed upon acquisition of the property due to the age of the structures.

Demolition Costs: $1,000,000.00

Financial Impact:
The financial impact to the Capital Project�s Fund Budget is $9,090,000.00.

For Additional Information, contact:

Joseph M. Moore (moorej@palmbeach.k12.fl.us)

Joseph M. Sanches

Attachments (list):
NEW_SUNCOAST_HS Exhibit A 041107.pdf
RE-1 Suncoast H.S. Beneficial Interest.pdf
RE-1 Demolition Resolution.pdf
RE-1 New Suncoast H.S. Checklist.pdf