Bradenton signs off on $12 million sale of 200 acres at Bill Evers Reservoir

BRADENTON -- The Bradenton City Council on Wednesday OK'd selling 200 acres of land near Bill Evers Reservoir in East Manatee to homebuilder Taylor Morrison for $12 million.

Taylor Morrison will now do due diligence to determine if their plan to build more than 500 housing units will work.

Under terms of the agreement, Taylor Morrison can pull out any time within the 120-day due diligence period, and the entire deal will still be contingent on the project winning approval from Manatee County, which has jurisdiction over the land.

According to Carl Callahan, city administrator, the city is looking at about 15-18 months before Taylor Morrison can close on the purchase.

"There are some initial dollars being put up front in escrow and there will be some more after the 120-day inspection period," said Callahan. "But the city won't see the full amount until after closing. This agreement takes into account the council's considerations from the previous agreement with WCI Communities and moves us forward to get the deal done."

WCI Communities won the first bidding war last year that featured six proposals from developers. WCI pulled out of the deal during that due diligence period.

The city only received two offers this time around. Neal Communities offered $12.5 million but only guaranteed $6 million at closing.

According to the purchase agreement, Taylor Morrison must place $25,000 into escrow within five days of the purchase agreement execution, and add $275,000 into an escrow account at the end of its due diligence period. The agreement allows for at least two extensions of a closing date, but it will cost Taylor Morrison more money at each extension. Callahan said it's an incentive placed in the agreement to do everything possible to close on the deal in a timely manner.

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

This story was originally published May 11, 2016 at 5:07 PM with the headline "Bradenton signs off on $12 million sale of 200 acres at Bill Evers Reservoir ."