Is the city of Fernandina Beach seriously offering (With NFLT) $675k to buy property that the owner purchased for $475k just a year ago (July 2019)? This is a 42% premium. I’m being told that there was an appraisal and all is good. Property values are up. The previous owner got a good deal.
This week’s Fernandina Beach city Agenda: Section 8, Item 6
6 OPTION AGREEMENT FOR SALE AND PURCHASE – PHEASANT RUN, LLC – RESOLUTION 2020-169 APPROVING AN OPTION AGREEMENT FOR SALE AND PURCHASE OF APPROXIMATELY 5.35 ACRES OF VACANT LAND ADJACENT TO EGANS CREEK GREENWAY FOR THE PUBLIC PURPOSE OF CONSERVATION OR PASSIVE PARKS; AUTHORIZING EXECUTION; AND PROVIDING FOR AN EFFECTIVE DATE. Synopsis: Approves the Option Agreement for Sale and Purchase for the purchase price of $675,000 with Pheasant Run, LLC for the acquisition of vacant land near Egans Creek Greenway for conservation.
- Why is the City Manager presenting this to the city commission for approval?
- Why are the Tree Conservancy groups not up in arms that the city is paying a 42% premium on property?
- Why is Rick Keefer/Pheasant Run LLC seeking to make a quick profit of $200k in one year from the City Conservation tax fund that is used to purchase this property? He is making a good deal for himself while the city takes it in the shorts.
- Why is the city not making a new list of properties that have not been promoted as “city wants to overpay for these properties”.
- Has anyone looked at the economics of taking this property off of the tax rolls? Here are some rough estimates.
· $675k Initial inflated cost
· $400k Lost tax revenues (city)-10 years @ 40k/yr (perpetuity) (plus lost county taxes)
· $100k Ongoing maintenance cost-10 years at $10K/yr (perpetuity)
= $1,175,000 Full cost of the property
I know that property values are going up, but 42% in one year for land does not seem fair. The city and the NFLT are setting a bad precedent on buying conservation property for a strong premium. For those city taxpayers and NFLT contributors who put funds in to buy property, we should all be concerned with how our money is being spent.
Let’s save trees! But, lets not squander the money on fewer acres bought at a huge premium.