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CASSELBERRY CITY COMMISSION Minutes of June 14, 2021 — Regular Meeting Page 9 of 15 between this and those existing City -owned properties to have an additional 12 acres that could be programed into the City's parks system and recreation programs. Mr. Newlon then gave an overview of the negotiations leading to presentation of the purchase agreement for the City Commission's consideration tonight. The terms of the proposed purchase agreement are for a purchase price of $1,250,000 plus closing costs, with $550,000 down at closing, and $700,000 to be paid off within two years at an interest rate of 7.5%, with no prepayment penalty. If approved, the $700,000 promissory note would be paid in two installments, one in fiscal year 2022 and one in fiscal year 2023, and the closing will be scheduled for July 14`I' Mr. Newlon further advised that the property would not be developed right away, but would be banked for future development; however, there would be some expenses incurred to bring the house which is in disrepair to a condition such that it can be preserved. He noted that these improvements may include a roof, air conditioning and a few other things to secure the home and prevent further deterioration. He advised that an architect had been engaged to assess what would need to be done to accomplish that, and he would bring the results of that assessment to the City Commission at a future meeting should the acquisition of the property be approved. In response to questions from the City Commission, Mr. Newlon advised that the two appraisals the City had obtained were completed in early 2020 and had been based on the value of the land only, as the home was in such a state of disrepair it was uncertain whether it could be rehabilitated. Commissioner Aramendia advised that he was very close with the Casselberry family, and he would be recusing himself from voting on this item. Commissioner Albritton and Vice Mayor Busch both expressed their feelings that purchase of this historic site would be a great opportunity for the City. Mayor Henson agreed that it would be an asset to the City. Budget Impact: The source of funding will be a debt obligation in the form of a promissory note payable over two years in the amount of $700,000. It will be budgeted in the General Fund to account 001-0000- 384.00-00. The remainder, $616,844, which includes closing costs, will be drawn from General Fund reserves and will be budgeted to account 001-0000-389.90-00. The purchase price along with closing costs will be apportioned with $315,779 budgeted to Parks Division account 001-0410-572.62-25 for the house and $1,001,065 budgeted to account 001-0410-572.61-07 for the land. BA #21-038 Explanation of Request: This budget amendment seeks City Commission approval to provide funding for the purchase of the Casselberry home (Brightwater) located at 700 S Lost Lake Lane, in the amount of $1,316,844 (Parcel #16-21-30-504-OD00-0140). Account Number Account Description Amount Increase: 001-0410-572.61-07 Land $1,001,065 001-0410-572.62-25 Building Improvements $ 315,779 001-0000-389.90-00 Other -Non -Operating Source $ 616,844 001-0000-384.00-00 Debt Proceeds $ 700,000 Recommendation: The City Manager recommended approval of Resolution 21-3243 and associated Budget Amendment #21-038.