BROOKSVILLE- During the August 11th 2015 Board of County Commissioners Meeting, the Commission voted to purchase the Tampa Bay Times building on Highway 50 for $4.15 million dollars. The price included a portion of the commercially zoned 6.9 acres of land owned by the Times, the building, furniture, and fixtures.
The County has been moving toward consolidation of their Utilities Department offices for a number of years in order to reduce staff time, as well as fuel and vehicle use. They reason that the 29,000 square foot Times Building will provide a solid solution with ample room to grow, state of the art facilities, and a centralized location. The County Commission acting as the Water and Sewer District’s governing body agreed to pay the purchase price of $4.15 million, out of the Hernando County District Utilities Fund.
The building was constructed in 2003 for $6 million. It has showers, an atrium with a 40 foot high ceiling and a balcony. Some of the more functional features include a meeting room that seats 100 people or 225 standing, a reinforced west end of the structure that can withstand 160 mph winds, a diesel generator and extra computer power hookups.
Commissioner Holcomb was not sold on the deal. He stated, “It seems to me that the amount of money that was negotiated here- I think we could get a better deal. I’ve heard some appraisals under $3 million… I would like to move to delay this and try to work on a better deal. I don’t see any other potential buyers for a 30,000 square foot building at this time.”
In support of the acquisition, the rest of the board did not bite on a delay. Commissioner Dukes stated that building on their Wiscon site for the consolidation effort would crowd future growth in the area. (The construction of a Wiscon Administration building, a fuel island and supporting improvements was put on the agenda as an alternative to the Times Building purchase.) Mr. Dukes also stated that the 10,000 square foot Administration building would cost $3.5 million at the Wiscon site.
To be clear, the Administration building cost was bid at $1.4 million, a Fuel Island at $591,000, Wiscon Road improvements at $507,000, Site Improvements at $678,000 and General Work at $224,000. This yields a total construction cost of $3.4 million.
Commissioner Dukes also highlighted that appraisals for the Times Building came in at 4.25 million and 4.65 million. Currently they pay $80,000 a year in rent at the Forest Oaks location. He stated additionally that the 4.5 acres is zoned commercial at a prime corner on a red light. “Quite truthfully I have no problem with this purchase and I think it’s a move in the right direction,” said Dukes.
Commissioner Holcomb explained, “I understand there’s a need. I don’t disagree with that, but I don’t think there’s an urgent need. I would just stress that we delay this a little longer, try to get ourselves a better price.”
Nicholson reasoned the following in regards to price, having recently purchased a piece of property equivalent in size to the Times property for $1 million. With $1 million in site improvements, and $1 million in land, the building is costing $2 million. He figures it’s a better deal to go with a 29,000 square foot building for $2 million than it is to go with a 10,000 square foot building for the same price.
To provide another frame of reference, Sticks and Seams is next door, belonging to T & D BUSINESS SERVICES INC. They purchased the 1.96 acre property including a 5,818 base area square foot building in 2014 for $535,000. The value on the property appraiser for the building is at $253,585 and the land is at $279,245. If you take a value of $300,000 for 2 acres, 4.5 acres would be $675,000.
Commissioner Holcomb was the sole member to vote against the motion to purchase the Times Building for $4.15 million. In addition to that cost, now that the County Government owns the property, there will be a loss of between $90K and $100K in property taxes each year.
However the county is preserving a building that has become a landmark in the area. The building could become an eyesore if The Tampa Bay Times were unable to maintain it or sell to someone else. The deterioration of a large prominent building would most likely have negative consequences for the community.
The Tampa Bay Times will have an occupancy period of up to 4 months on top of the 90 days until closing. They will be paying “a fair market rent,” according to County Attorney Jon Jouben. Utility Department activities will commence following closing, despite the occupancy period.