Bradenton enters talks to sell Evers Reservoir property for $12 million

BRADENTON -- Despite it not being an agenda item, Bradenton City Council members took action Wednesday to approve negotiations with Taylor Morrison for the purchase of more than 200 acres west of the Bill Evers Reservoir for $12 million.

The offer is $2 million more than Taylor Morrison of Bradenton offered in the first round of presentations last summer when WCI Communities was awarded the purchase agreement. WCI of Bonita Springs terminated the purchase agreement in February.

The city put the property back out to bid and received only two offers as opposed to six received in July 2015.

The second offer was from Neal Communities, which bid last year but did not make the final cut after only offering $6 million.

Neal Communities offered $12.5 million this time, but the offer was for $6 million

at closing and a 3.25 percent commission from each home built and sold in a conceptual plan featuring 633 units. The potential was there for the city to make more than the $12.5 million, however, City Administrator Carl Callahan said it is risky.

"It's a way of how you can potentially maximize the money you get, but there is some risk and there are a lot of assumptions in how many they sell and how long it takes," said Callahan. "It's a market-driven condition as well, so there is a lot of speculation in what the market does.

"If he sells 300 units a year, then great, but if it takes 10 years, then that's how long it takes. One proposal is the city gets the money after closing and one proposal is potentially more money in a longer time frame."

Pat Neal, president of Neal Communities, acknowledged Taylor Morrison's offer guarantees the city $12 million.

"Ours is a formula purchase that could be more money and I think it will be over six to eight years," said Neal. "I understand the city's recommendation for Taylor Morrison, but my purpose is to follow the action and be considered if something happens with Taylor Morrison. It strengthens the city's standing because they'll want to close if they know somebody is behind them that is very interested in the property."

The motion to move forward with negotiations with Taylor Morrison includes naming Neal Communities as second choice. Should negotiations fail with Taylor Morrison, the city can immediately pick up negotiations with Neal Communities.

Other than raising its purchase offer, Taylor Morrison's conceptual site plan remains the same. It is offering an "active adult" gated community with amenities ranging from walking trails to full-time activities director onsite for residents. It's the company's most successful model and a growing trend in the development industry where residents are looking for smaller, maintenance-free homes. If the plan is similar to the one presented in 2015, the site will include more than 500 units.

City attorney Bill Lisch said negotiations should happen quickly and a contract could come before the council soon. If successful, the anticipated closing date could occur within 18 months. The city would not receive the $12 million until then.

Upon selling the land, the development process would go through Manatee County. The sale would be contingent on final site plan approval from the county.

Mark Young, Herald urban affairs reporter, can be reached at 941-745-7041 or follow him on Twitter @urbanmark2014.

This story was originally published March 23, 2016 at 11:29 PM with the headline "Bradenton enters talks to sell Evers Reservoir property for $12 million ."