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January 19, 2021 School Board Meeting
Title
Property Sale to Florida Department of Transportation - Purchase Agreement
Meeting Date(s)
Action - 01/19/2021
Consent Type
Discussion

The Florida Department of Transportation (FDOT) is acquiring right-of-way for improvements to State Road 3 (North Courtney Parkway). The proposed acquisition affects the far southwest corner of the Merritt Island High School property, at the northeast corner of State Road 3 and Mustang Way. The proposed acquisition of 5,668 square feet does not affect the Merritt Island High School campus. The negotiated sales is in lieu of condemnation proceedings. 

Series 2007C Certificates of Participation (COP) were used to finance construction at the school and the property is encumbered by a ground lease as security for the loan. The property cannot be sold until an amendment to the COP master lease is approved by the School Board, the School Board Leasing Corporation and US Bank (the Trustee). The District engaged Bryant, Miller, Olive, P.A. as bond counsel to prepare the required documents. The fee for this service is included in the total compensation to be paid to the District for the property. Proceeds from the sale of the property can only be used to pay a partial debt payment for the 2007C Certificates of Participation.

There are ten (10) documents relating to this process. Nine (9) require School Board approval and five (5) require School Board Leasing Corporation approval. The School Board will first consider those documents relating to the release of the encumbrance. Next, the School Board will recess and the School Board Leasing Corporation will act on the documents relating to the release of the encumbrance. Finally, the School Board will reconvene and act on the documents relating to the sale of property, which must be considered in order. 

Attached are the following: 

  • Aerial map of the proposed acquisition
  • List of Documents (including order of action)
  • Documents 1-10

The Purchase Agreement, Board Resolution 2021-01 (authorizing deed) and Deed were prepared by the Florida Department of Transportation and reviewed by the School Board's General Counsel. The remaining documents were prepared by bond counsel, Bryant, Miller, Olive, P.A. on behalf of the Board.

The School Board will be acting on Documents 1-4 and 9 first followed by the Leasing Corporation action on Documents 1-5 .  Under this item, the School Board will act on Documents 6-8 and 10 relating to the purchase of the property.

 

 

 

 

 

Recommendation

Approve the following documents:

6.            Purchase Agreement with Addendum   

a.            Legal Description

7.            School Board Deed 

8.            School Board Resolution 2021-01 (authorizing deed) 

10.          School Board Resolution 2021-03 Approving Release and Sale 

a.            Exhibit A – Series 2007C Second Amended Ground Lease Agreement (Document 1)

b.            Exhibit B – Second Amended Schedule No. 2007C to the Lease Agreement (Document 2)

c.             Exhibit C – Purchase Agreement (Document 6)

Authority for Action
F.S. 1001.42
Involves Expenditure of Funds Directly in the Classroom
No
Source of Funding

Agenda Item will not Require the Expenditure of Funds
Financial Impact
FY Amount Budgeted Fund Cost Center Project Function Object Program
                 
Legal Counsel Review
Yes - Review Date: 12/18/2020
Contact
Paul Gibbs, General Counsel 633-1000 ext. 11438 Susan Hann, P.E., Assistant Superintendent Facilities Services 633-1000 ext. 11446
Attachments
MIHS FDOT Parcel.pdf
Summary of Documents and Actions Required SR 3 Property Acquistion.pdf
SR 3 Documents 1-10 with Dividers (1-4-21).pdf
Agenda Plus