SUBJECT
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Approve Land Purchase Agreement between Rosaleda Enterprises, Inc. and Polk County for the purchase of property in conjunction with the Courthouse Electrical Upgrade Project. ($1,812,222, one-time expense)
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DESCRIPTION
The County has plans to make upgrades to the electrical system for the courthouse due to issues associated with the existing and aging system which have caused outages that disrupt court functions. The plans include the installation of a new high voltage switchgear to alleviate outages due to equipment failure along with a new generator that will have the capability of powering the entire courthouse during power outages caused by other factors. New transformers will be installed adjacent to the north of the judicial parking garage/maintenance building; however, the proposed generator is large and requires a significant amount of space to install, operate and buffer from existing County operations/facilities. Space and property is very limited in the area immediately surrounding the courthouse/maintenance building and there are no open areas, County owned or otherwise, in which to install the generator. A review of the surrounding area has determined that the property, containing approximately one-half of an acre, located immediately to the south of the judicial parking garage/maintenance building would make an ideal location for the generator due to its proximity to the proposed switchgear and electrical system while being relatively isolated from the courthouse itself. The property would also be utilized for the relocation of the cooling tower in the future and additional staff parking in addition to the planned generator. The subject property is approximately one-half acre in size and contains a concrete block building measuring approximately 7,200 square feet which is utilized as a medical office. The existing structure would be removed in order to utilize the site for the planned improvements.
County staff contacted the owner of the property, Rosaleda Enterprises, Inc., to inquire if it had any interest in selling the property. The owner stated that it would consider a sale of the property and the County hired an independent appraiser to establish a value for the property. Negotiations with the owner have resulted in a proposed price of $1,802,222 for the purchase of the property and the owner has executed an Agreement for the sale of the property. The agreement contains a provision that will require the parties to enter into an escrow agreement with the title agent as to the disbursement of the owner’s funds.
The County Attorney’s Office and the Real Estate Services Director have reviewed the Agreement and recommend approval. Approving the Agreement, authorizing the issuance of funds for the purchase and associated closing costs, and hiring American Government Services Corporation to close the transaction will allow the County to take ownership of the property for the improvements.
RECOMMENDATION
Request Board approve the above-mentioned Agreement and authorize the issuance of funds in the amount of $1,802,222 for the purchase. Also request Board approve hiring American Government Services Corporation to close the transaction and approve paying estimated closing costs in the amount of $10,000 for a total amount of $1,812,222. Also request Board authorize the Real Estate Services Director to sign the documents, including the above-mentioned escrow agreement, on behalf of the County at the closing.
FISCAL IMPACT
Upon approval of the FY 25/26 budget and effective October 1,2025, funds will be available for the purchase of the parcel along with applicable closing costs in the total amount of $1,812,222 in the General Capital Improvement Fund.
CONTACT INFORMATION
R. Wade Allen, Director
Real Estate Services
863-534-2577