Consideration of the Purchase and Sale Agreement for 136 W. Boynton Beach Blvd.

The property at 136 W. Boynton Beach Blvd. is approximately 0.31 acres (13,503.6 sq. ft.) located within a nine-parcel block directly across from City Hall and two major mixed-use developments one of which is currently under construction. The BBCRA currently owns three properties within the block, and the proposed acquisition would further the BBCRA's efforts to assemble land for a larger redevelopment opportunity (see Attachment I).

Although the subject property is not directly adjacent to existing CRA-owned parcels, securing additional ownership within the block would strengthen the BBCRA's position for future redevelopment.

The property is also located several blocks east of the BBCRA's ongoing land assemblage involving more than six acres at 480 W. Boynton Beach Boulevard. Together, these acquisitions reflect a coordinated approach to redevelopment along the West Boynton Beach Boulevard corridor.  These acquisitions are in accordance with the BBCRA redevelopment plan (see Attachment II) and provides opportunities for future private investment which, in turn, strengthens connections between three redevelopment districts - Boynton Beach Boulevard Corridor,  the Cultural District and the Downtown District.

The property is currently listed for sale at $1,700,000.00. To evaluate the property's value, staff obtained two appraisals using different valuation methods. The first appraisal, based on comparable sales, valued the property at $800,000, or $59.24 per square foot (Attachment III). The second valuation analysis evaluated the average price per square foot of properties within the surrounding block and established a value of $75.00 per square foot (Attachment IV).

At the proposed purchase price of $1,195,000, the acquisition cost would be approximately $88.50 per square foot.

This represents approximately 49.4% above the first appraised value and 18% above the price per square foot established in the second valuation analysis.

The following table provides a comparison of the valuations and proposed purchase price.

Valuation Method              Total Property Value    Price per SF    Proposed Purchase Price Above Valuation

Current Listing Price                      $1,700,000                  $125.89            N/A

Proposed Purchase Price              $1,195,000                  $88.50             29.7% below listing price 

Appraisal 1: Comparable Sales     $800,000                    $59.24             49.4% above proposed purchase price 
Appraisal 2: Block Average            $1,012,770                 $75.00            18.0% above proposed purchase price 

Keep in mind the acquisition represents a long-term investment in the BBCRA's efforts to keep redevelopment activated, eliminate blight, encourage private investment, and support a vibrant downtown. The property's contribution to those objectives is a very relevant consideration alongside its appraised value.

FY 2026-2027 Budget, Project Fund, Line Item 02-58200-401 - $1,195,000.00

2016 Boynton Beach Community Redevelopment Plan - Boynton Beach Boulevard Corridor

1. Approve the purchase of the property located at 136 W. Boynton Beach Blvd. and authorize the Chair to execute the Purchase and Sale Agreement subject to final legal review.
2. Do not approve the purchase of the property located at 136 W. Boynton Beach Blvd.
3. Provide alternative direction.