STATE ROAD 100 CORRIDOR COMMUNITY REDEVELOPMENT AREA Property Acquisitions June 15, 2010 Presentation for SR 100 Board/City Council Meeting

SR 100 CRA Background and Purpose Background –Established April 20, 2004 –30 Year Time Horizon –Tax Increment Financing (future revenue from CRA pays for improvements to encourage redevelopment) Purpose –Improve and/or Redevelop Blighted Areas Midway Subdivision Whispering Pines Subdivision –Establish the City’s “Downtown” or Urban Core –Encourage Development of Additional Commercial Corridor (Alternative to Palm Coast Parkway)

SR 100 CRA Completed Projects Master Plan Updated Central Park Improvements Land Acquisitions I-95 / State Road 100 Gateway Features Bulldog Drive Project Development and Engineering Report CRA Financing Approved

Future Capital Improvements High Priority Projects Bulldog Drive Central Park Enhancements Phases II and III Civic Architecture (Community Center) Other (Historic Property/Site Rehabilitation) State Road 100 (Sidewalk, Traffic Signal/Mast Arm Assembly, Gateway Signage)

Existing Bulldog Drive Corridor

Potential Bulldog Drive Enhancements

FY 2009/2010 Projections Tax Increment Revenue $ 1,386,523 Investment Earnings $ 25,000 Loan Proceeds $ 4,000,000 TOTAL REVENUES $ 5,411,523 Professional Services $ 100,000 Land Purchases $ 2,900,000 Bulldog Drive Design $ 300,000 Central Park $ 120,000 Debt Service $ 652,220 Contingency $ 1,339,303 TOTAL EXPENSES $ 5,411,523

Implementation Short-Term Approve Current Loan Complete Right-of-Way Acquisition for Bulldog Drive Complete Design & Construction Plans for Bulldog Drive Additional Property Acquisitions in Target Areas Central Park Improvements Long-Term Additional Financing (Repayment of City Note) Bulldog Drive Construction Additional Capital Improvements per CRA Plan

Right-of-Way Acquisition Status Third Coast Holdings, LLC AjramCole Flagler County School District

Third Coast Holdings Acquisition Appraisal –Arms Length Transaction Opinion of Value: $1,050,000 –Arms Length Transaction (sort of) Negotiations –Third Coast Holdings (TCH) Offered to Sell Property to City for $1,400,000 –Initial Offer by City Staff was Appraised Value for $1,050,000 –Further Negotiations Concluded with Tentative Agreement $1,150,000 Purchase Price (including necessary remediation) $100,000 for Demolition of Structures and Septic Removal

Third Coast Holdings Acquisition Considerations –Alternative to Reaching Agreement would be either Eminent Domain or Revising Preliminary Roadway Design –Acquisition Improves City Holdings Control Important Corner Entrance to Downtown Adds Value to Adjacent Holdings Accommodate Stormwater Off-Site to Increase Value Eliminates State Road 100 Uncertainties (Future ROW) Removes Blighted Properties along Major Corridor

Implementation Short-Term Approve Current Loan Complete Right-of-Way Acquisition for Bulldog Drive Complete Design & Construction Plans for Bulldog Drive Additional Property Acquisitions in Target Areas Central Park Improvements Long-Term Additional Financing (Repayment of City Note) Bulldog Drive Construction Additional Capital Improvements per CRA Plan

Additional Acquisitions Interested Property Owners that Contacted City

Additional Acquisitions Jane & Jason LLC –13,000 square feet (11,500 net of easement) –Appraisal: $126,500 (based on $11/s.f.) –Offer Accepted Stevens –12,405 square feet –Appraisal: $124,050 (based on $10/s.f.) –Offer Accepted Wilcox –44,000 square feet (4 lots) –Appraisal: $440,000 (based on $10/s.f.) –Offer Accepted (Initially Rejected)

Budget for Land Purchases 09/10 Land Purchases $ 2,900,000 Expended to Date$ 800,299 Proposed Purchases$ 1,940,600 –Third Coast Holdings ($1,250,000) –Stevens ($124,100) –Jane & Jason LLC ($126,500) –Wilcox ($440,000) Balance$ 159,101 Contingency $ 1,339,303

Recommendation Approve Third Coast Holdings LLC Acquisition (June 15 CRA Board & City Council) Approve Additional Property Acquisitions in Target Area (June 15 CRA Board & City Council) –Jane & Jason LLC –Stevens –Wilcox Staff Continue Negotiations with Remaining Acquisition Needed for Bulldog Drive – Ajram