Broward balking at deal that makes developer $5.5 million in hours

Sun Sentinel

By Buddy Nevins, Political Writer, Posted May 8 2001

Support for buying county park land in Lauderhill eroded on Monday after Broward County commissioners learned that a developer stands to earn $5.5 million for owning the site just a few hours.

Commissioners Ben Graber and Sue Gunzburger, who last week supported buying 96.3 acres north of the Fort Lauderdale Swap Shop on Sunrise Boulevard, now say they no longer back the deal.

The purchase of the property for the first regional park in a minority residential area will be discussed at today's commission meeting.

Commissioners voted 7-2 to negotiate buying the land, which is now an abandoned antenna field owned by AT&T. With Graber and Gunzburger switching sides and several other commissioners wavering, the purchase of the property no longer seems a certainty.

"I'm for parks, but not for gouging," Graber said. "I'm not ready to buy this land for this kind of quick profit going to a developer."

Sun-Sentinel disclosed on Saturday that the proposed park is scheduled to be bought by Southern Facilities Development of Lauderhill LLC from AT&T for $9.5 million. The same day the Land for the Public Trust, a nonprofit group acting as the county's land acquisition consultant, plans to buy the property for $15 million, according to documents.

The sale was to close Monday, but was delayed after commissioners demanded another chance to debate it.

The county had been expected to buy the property from the trust for $15 million. That money would come from last year's $400 million parks bonds and would be more than half the $28 million that is set aside for the purchase of land for regional parks.

The news that Southern Facilities would earn $5.5 million for owning the land less than a day annoyed commissioners.

"It isn't right to purchase open land which would enrich somebody for six or so hours of work," Gunzburger said.

County Administrator Roger Desjarlais on Monday night defended the land purchase in a memo to commissioners. He said the land would cost the county $15 million or $156,000 an acre, which is under the $160,000-an-acre estimate for land purchases made last year during the park bond election campaign.

Also on Monday, the Broward League of Cities joined Lauderhill city officials in opposing the park's purchase. Lauderhill commissioners say the city needs the $360,000 annual tax revenue warehouses would produce.

League President John Fiore, the mayor of Wilton Manors, wrote county commissioners that the organization had backed the park bonds. "We do not, however, believe that the funds were intended to undermine the tax base of our cities by purchasing lands already zoned as revenue sources," Fiore wrote.

But County Commissioner Josephus Eggelletion, a strong supporter of the Lauderhill purchase, said the park would eventually increase property values in Lauderhill, providing more taxes than the warehouses ever would. Richard Weisskoff, a University of Miami economics professor, said the park would cause a 20 percent increase in property values in the area surrounding the park.

Southern Facilities wanted to build 1.5 million square feet of warehouse space on the property. The company is run by three Miami-based developers with long histories of building commercial property, Jose Boscheti, Chip Abele and Maurice Cason.

The three specialize in building commercial projects on vacant land in the already built-up portions of Miami-Dade and Broward counties, which are called in-fill sites. They are also partners in the 106-acre Seneca light-industrial park in Pembroke Park, where tenants include Home Depot, Royal Caribbean Cruise Lines, the Broward Sheriff's Office and the Sun-Sentinel.

Abele said the group was working to put together the Lauderhill project for the past three years. They had recently gotten financing and in March hired Weisskoff to do an economic impact study of the site before buying it.

Weisskoff said he toured the property. "I decided the area didn't need warehouses," he said. "It needs a park. I went back to my client [Southern Facilities] and told them I had a conflict, that I didn't think their warehouse idea was right for this land."

Although Abele said he was skeptical about the idea of selling the land for a park, he told Weisskoff to contact the Broward parks department. Weisskoff called Parks Director Bob Harbin on March 26 and that started the negotiations that led to the complicated and profitable deal.

Abele said Southern Facilities would make $31 million in 10 years by building the warehouses, and he had clients ready to locate in the new Lauderhill project.

"I wanted to stay in this for the long haul," Abele said. "But some of my partners said, `Let's make a quick buck.' The economy could turn sour. Anything could happen."

The $15 million sale price Southern Facilities set on the property was based on two appraisals: $15.7 million and $15.2 million.

"We're selling it for less than the appraisals," Abele said.

The appraisals are based on the value of the property at its highest and best use -- having warehouses already built on the land, not on vacant land.

Graber and Gunzburger and Commissioner John Rodstrom, who also opposes the price of the proposed park, said they could support buying the land for less money.

Abele was adamant. "We wouldn't do it for $1 or $2 million bucks. We've got too much [time] into it, and we've got to make something."

Buddy Nevins can be reached at bnevins@sun-sentinel.com or 954-356-4571.

Copyright © 2001, South Florida Sun-Sentinel

[I considered going into real estate some years ago, but I just didn't find mowing all that grass appealing, even if I could do it barefoot....]

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Answers

Broward hands developer quick $5.5 million profit on land deal

Broward County commissioners on Tuesday stood behind their decision to buy 96 acres of open land in Lauderhill for a regional park, even though the purchase price includes a $5.5 million quick profit for a developer.

More here... Sun Sentinel

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