HomeMy WebLinkAbout2001 08 02 Regular A Leerdam Property
Regular Agenda "A"
August 2, 200101
Page 1 of2
COMMISSION AGENDA
ITEM A
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
08/02/01
Meeting
MGR. ~EPT
Authorization
REQUEST: City Manager requesting direction from the City Commission relative to the
Leerdam property acquisition.
PURPOSE: This agenda item is needed to update the Commission on the status of the
Leerdam Property Purchase by the State, and requesting direction related thereto.
CONSIDERATION: See Attached Memorandum
ALTERNATIVES:
A. Utilize $750,000 of the City Bond Funds to acquire the Leerdam property.
Utilize $50,000 City Bond funds and $325,000 in City General Fund Revenues to
develop the Central Winds Trail Head.
B. Maintain current strategy of utilizing $800,000 Bond Funds to leverage State
FRDAP Grants to $1,600,000 in project expense and potentially give up the
Leerdam acquisition and Trail Head project.
FUNDING:
Alternative A
Commit $750,000 City Bond Funds to acquire Leerdam
property, commit $50,000 City Bond Funds, and commit
$325,000 General Fund Revenues to leverage FRDAP Grants
to construct the Central WindsTrail Head.
Alternative B
Commit $375,000 City Bond Fund to match $375,000 in
FRDAP Grants to construct Trail Head, potentially loose the
acquisition of the Leerdam property and the Central Winds
Trail Head,
RECOMMENDA TION: It is recommended that the Commission support our current
strategy (Alternate B) of having the State acquire the property, and the City utilize $375,000 in
City Bond Funds to leverage $375,000 in FRDAP Grants to develop the Central Winds Trail
Head,
ATTACHMENTS: July 28,2001 Memorandum to the City Commission.
COMMISSION ACTION:
MEMORANDUM
TO:
Mayor and Commission
URGENT
FROM:
Ronald W. McLemore, City Manager
DATE:
July 28, 2001
SUBJ:
Leerdam Property Acquisition
You will recall that the previously approved Leerdam property purchase by the State was
recently taken off the recommended funding list by the Department of Environmental
Protection (DEP). The cause stated was reduction of funding in the FY 02 State Budget.
In response we were able to get the project back on the schedule for consideration by the
Governor and Cabinet through the assistance of Speaker Tom Feeney, We were told that
DEP staff would support the project before the Governor and Cabinet.
Last Tuesday, we received word that Bob Ballard, Deputy Director of DEP was going to
recommend that the acquisition be denied. As a result, Jerry Sansom and I flew to
Tallahassee this past Thursday to talk to Mr. Ballard. At this meeting with Mr. Ballard we
learned that he would not allow his staff to recommend approval because he was afraid
how he would be looked upon by the Governor and Cabinet due to the price of
approximately $1.6 million or $170,000 per acre. He stated the most the Governor and
Cabinet had ever funded was $70,00 per acre.
We advised him that the City would be putting an estimated $750,000 into the
development of the Trail Head on the site in return for the State's allocation of$1.6 million
for acquisition of the property. This arrangement did not change his view of the project.
However, an alternative of the city putting $750,000 into the acquisition of this property
bringing the State's share down to $850,000 and the City using State FRDAP grants to
develop the property would be an idea he could support.
Leerdam Acquisition Denial.doc
Page I of3
Unfortunately, this is not an acceptable strategy for the City for the reason that FRDAP
grants can only be used for development not acquisition, and that FRDAP grants have to
be matched dollar for dollar by applicants. As a result we would not be able to use the
$750,000 of our money that would be appropriated for puchase of the land to leverage
funding for development of the land with FRDAP Grants,
Today we have $800,000 in City bond proceeds from the 1999 General Fund Revenue
Bond Construction Fund to leverage FRDAP grants giving us an estimated development
capacity of $1,600,000. If $750,000 was used to acquire the Leerdam property this would
leave only $50,000 in Bond Proceeds that could be used to leverage FRDAP grants for
development projects,
The table below shows the two scenarios:
Using $800,000 to
Local Development Funds to
Leverae:e FERP AP Funds
Using $750,000 of $800,000
Local Development Funds to
Acquire Leerdam Property
Local Development Funds
$ 800,000
Local Development Funds
Acquisition of Leerdam
Property
Net Local Development Funds
FRDAP Development Funds
Total Development Capacity
$ 800.000
$1,600,000
FRDAP Development Funds
Total Property Capacity
$ 800,000
$ 750.000
$ 50,000
$ 50.000
$ 100,000
The table below shows "A" how we had intended to use the $1.6 million in combined City
and State funds and "B" how that plan would be impacted if $750,00 of our City bond
proceeds were used to acquire the Leerdam property:
"A" "B"
Acquisition of Leerdam Property
Central Winds Trail Head Development (Leerdam Property)
Magnolia Trail Head Development
Unpaved Trail Section Development
-0-
$ 750,000
$ 500,000
$ 350.000
$1,600,000
$750,000
$100,000
-0-
-0-
$850,000
Leerdam Acquisition Denial.doc
Page 2 of3
Therefore it is my recommendation that we do the following:
1, Reject the alternative of allocating City bond funds for acquisition of the Leerdam
property in conjunction with State funds.
2, Request Speaker Feeney to attempt to get Bob Ballard ofDEP to take a neutral stand
before the Governor and Cabinet in the alternative to recommending denial of State
funds for purchase of the Leerdam property, and take our chances with getting the
Governor and Cabinet to support our proposal.
3, If the Governor and Cabinet reject our proposal then drop the Central Winds Trail
Head from the trail development program in Winter Springs and suggest that the trail
head be built somewhere north/west of the city with trail funds recently approved by
the voters for trail development in the County.
4. Utilize the $750,000 in bond funds that would have been utilized for the Central Winds
Trail Head for other trail and recreational needs in the City.
I would suggest that we need to meet briefly next Thursday evening, or anytime next
Friday, or anytime next Monday to discuss this matter prior to the meetings that are
scheduled with the Governor and Cabinet staff on August 8, 2001 in Tallahassee.
Please advise Andrea of your preferred date to meet.
/jp
cc: City Clerk
City Attorney
Community Development Director
Leerdam Acquisition Denial.doc
Page 3 of3