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Contract for Sale and Purchase of Real Estate With Brooksville Commercial Properties, LLC, and Oak Tree Lane, LLC, for Property Located at 671 South Broad Street and 699 South Broad Street for the Central Government Annex Building (Key # 146292 and Key #146354)
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BRIEF OVERVIEW
The Supervisor of Elections (SOE) has requested an air-conditioned warehouse for the storage of the election equipment for many years. The strip plaza space, Parcel Key Nos. 146292 and 146354, known as Brooksville Plaza, on Broad Street has recently become available for purchase and is centrally located within Hernando County.
The County initially attempted to rent the space in the strip plaza for the Supervisor of Elections because their current lease is scheduled to expire in 2027. Market rental rates have increased significantly since 2021 when the Supervisor of Elections initially entered their lease. However, the cost of the buildout (over 1 million dollars) directed the County towards considering a possible purchase. Best practices are that Governments should not rent space and only as a last resort. Renting a space sometimes leads to improving privately owned property (remodel, floors, security systems, etc.). This is improving the personal asset of an individual with taxpayer dollars.
A space in the strip plaza was identified that can store Supervisor of Elections equipment while also accommodating the centralization of the main election office and the warehouse within a single building. The Supervisor of Elections currently rents a commercial building for the Main Election office. The County has made significant improvements to this building, and are planning on adding a generator switch, pad, and electrical upgrades to allow for generator power.
The Supervisor of Elections is currently utilizing the defunct Spring Hill Fire District (Fire Station 2) Fleet Building for the Supervisor of Elections warehouse. If the SOE relocated out of this building, County Administration would suggest that the Fleet department expand operations here to provide maintenance on Fire Engines. This will reduce the amount of time and money it takes to drive the Fire Engines to Brooksville that are on the west side of the County. This will reduce the amount of expansion needed for the Fleet Garage in the future.
The existing Westside Supervisor of Elections office would be reduced in size to only provide election office service. The training room and storage would be relocated to the Central Elections office. This will allow the Sheriff’s Office and Housing and Supportive Services to have space for expansion at the West Side Government Center in the future.
Additionally, the Tax Collector office (Tax Collector) located in the Historic Courthouse needs to remodel the space and parking is not convenient in downtown Brooksville. The Tax Collector would prefer to relocate next to the Supervisor of Elections, if this building is purchased. Allowing for space in the Historic Courthouse to be used for additional Courts expansion.
The Property Appraiser has a lease with the City of Brooksville for the third floor of the City Hall Building. The County continues to make improvements in the City of Brooksville building, including a remodel, and a planned security system upgrade for the Property Appraiser’s Office. The City of Brooksville has expressed interest in reclaiming this space back for future City Staff use. The Property Appraiser could be relocated to the building in the future if the BOCC purchases this property.
The Veteran’s Services, and the Housing Authority both rent from the Housing Authority. The County could eliminate this rent by relocating these departments into a county-owned building.
The County Tourism office is currently located in the City Parks and Recreation building at Hernando Park. The Tourism department will have to relocate to another facility in a few more years and pay rent when this lease expires The City has expressed interest in having the Tourism department relocate sooner, if possible, as they could use the space, or rent to a market rate tenant.
The County Employee Wellness Center (Wellness Center) currently rents space in a private office in Brooksville. Long-term the Wellness Center could relocate to the strip plaza to reduce county leased spaces. Currently, the County continues to improve this privately owned office space, as the needs of the Wellness Center continue to change over time.
Staff recommend approval of the contract to purchase property located at 671 South Broad Street, and 699 South Broad Street, owned by Brooksville Commercial Properties, L.L.C., and Oak Tree Lane, L.L.C., in the amount of $5,500,000.00. The purchase would facilitate the reduction of renting and upgrading private buildings, centralizing government services into one single building.
The legal descriptions are contained in Exhibits A and B.
Parcel ID Nos.: R22 222 19 3420 0000 0013 and R22 222 19 3420 0000 0060
Key Nos.: 146292 and 146354
All current tenants shall remain in their leased premises for the full term of their respective leases, unless otherwise agreed in writing by both and landlord and tenant, and shall not be required to vacate earlier than the end date of their lease.
STRATEGIC PLAN INITIATIVES
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FINANCIAL IMPACT
Funding for this property acquisition in the amount of $5,500,000.00 and associated closing costs/fees will be funded from FY 26 Bond funds.
This purchase is part of CIP 112320 - Central Constitutional Annex Building and Renovation
The financial plan for the property shows the costs of purchase and maintenance will be approximately equal to the savings from reducing other leased properties and income from rental units.
LEGAL NOTE
The Board has authority to act on this matter pursuant to Chapter 125, Florida Statutes.
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RECOMMENDATION
It is recommended that the Board approve and authorize the Chairman’s signature on the attached Contract for Sale and Purchase of Real Estate with Brooksville Commercial Properties, L.L.C., and Oak Tree Lane, L.L.C., for Parcel Key Nos. 146292 and 146354 and authorize the County Attorney to sign all documents on behalf of the County necessary to close this transaction.