$12 million Evers Reservoir deal in jeopardy once again

Selling off 200 acres of vacant land to the west of Bill Evers Reservoir is proving to be more difficult than the city had hoped.

The value of the land compared with the cost of developing the property is at issue, largely due to what has been referred to as the “mound” — about 1.5 million cubic feet of dirt and clay deposited at the site when the lake was expanded to 225 acres in 1985.

WCI Communities won the first round of bidding last year but pulled out of the project. Taylor Morrison homebuilders won the second round of bidding with a $12 million offer in May. The developer’s 120-day due diligence period is about to expire, and it has reduced its offer to $10.5 million.

“The problem for the developer is the cost of getting that soil off the property and the first developer found the same problem,” said Vice Mayor Gene Gallo. “There’s nowhere to put it and they will have to truck it out, and that’s going to be expensive.”

Gallo said there are no contamination issues with the soil and that it comes down to what the bottom line would be for Taylor Morrison.

“The monkey wrench is how to deal with the mound, and it does take up quite a lot of the property,” said city administrator Carl Callahan.

When the city expanded the reservoir, it didn’t own the 200 acres now up for sale. Callahan said the city received permission from the previous owner to deposit the reservoir spoils there and knew what it was getting when the city did buy the property years later.

“The problem is the clay,” he said. “Clay can’t be spread out and compacted like regular dirt. But some people know how to get ingenious, so we welcomed them to do the studies so they can figure out whether there is a way to use it or make it an amenity. But that’s up to the developer.”

Taylor’s latest offer includes a reduction in proposed housing units from around 500 to 340 units. The company pledged to pay an additional $30,000 for every unit above that number. The company also proposed being allowed to dump the clay on a nearby 40-acre parcel surrounded by three housing developments.

Since the land is located in Manatee County, the project would be reviewed by the county’s planning department. No one believes the county would approve Taylor using that acreage to dump the clay given the significant effect on those three communities.

“What would happen there is a buildup of a three-story mound those folks would have to look at,” Gallo said. “Quite obviously, they would never get approval from the county. I think they will have to come back to us, and I’m sure we are willing to listen because we understand the problem out there.”

The city council has the choice to accept the new offer, or let the purchase agreement expire and release a new request for proposal.

Taylor Morrison officials did not return a request for comment Monday.

This story was originally published November 14, 2016 at 11:53 AM with the headline "$12 million Evers Reservoir deal in jeopardy once again."