At the most recent city commission meeting, the Tallahassee City Commission voted to approve the release of an RFP for the sale and redevelopment of two City-owned properties located downtown.
The vote was 4-1. Commissioner Matlow voted against the recommendation.
The two properties are designated as the Chevron Block (2.4 acres) and Johns Block (2.7 acres). The properties are bounded by W. Gaines Street, S. Martin Luther King, Jr. Boulevard, W. Madison Street and S. Duval Street. The blocks are bisected by S. Bronough Street.
The City staff estimates a minimum of $8,000,000 from the sale of property. The parcels were purchased from the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida in 2005 for $5,850,000.
City policy directs one-time land sale proceeds support the deficiencies fund or non-recurring capital projects.
Currently, the properties are primarily used for surface parking. The Johns Block on S. Duval Street is improved with 132 paved parking spaces (19 are metered), two sand volleyball courts and a food truck court. The Chevron Block, on S. Bronough Street has 165 parking spaces; approximately 10 of these spaces are paved, and the remaining spaces are gravel. For FY2017 and FY2018, these surface parking lots produced a net income of $24,795.02 and $20,282.61, respectively.
Staff reported that the City has received numerous calls from parties interested in purchasing these parcels. Most recently, an agent for a national hotel chain contacted Real Estate Management in August of 2019 to inquire about the properties for a hotel development.
In addition, a local real estate broker contacted Real Estate Management in March of 2019 to inquire about a purchase of both parcels for a client’s hotel development. Real Estate Management was also contacted in July of 2019 with non-specific inquiries about large City-owned parcels and parking garages located in Tallahassee’s urban core.
Any proposed sale, which may result from this solicitation, is subject to final approval by the City Commission.