City presents land purchase, option and amendment package to accelerate Logistics Parkway extension

City Manager (name not specified) told the Winter Haven City Commission the city is prepared to present a purchase-and-sale agreement to buy 4.04 acres from Florida Can Manufacturing (now part of Ball Corporation) at $105,000 per acre, together with related amendments and option agreements intended to speed construction of the Logistics Parkway Extension.

The city manager said the change in alignment, made possible by acquiring the parcel, reduces the estimated project cost from more than $21 million for the original horseshoe alignment to about $10.5 million on the plans now at about 85 percent design. The project has two state grants totaling $9,411,000 that require timely completion, he said.

Why it matters: staff told commissioners the shorter route will halve the engineer's current estimate of probable cost, keep the project within available grant funding and allow the city to bid the work sooner. The city manager said the agreement includes a first amendment to a developer's agreement with Florida Can to remove obligations that would have required the company to fund portions of the road if the city secures grant funding, consistent with the original intent of that agreement.

Key components and timeline - Purchase: 4.04 acres from Florida Can Manufacturing for $105,000 per acre; purchase-and-sale agreement to be executed pending commission approval and signature exchange with Ball representatives. - Developer's agreement amendment: removes company's original obligation to pay for construction and utility relocation where city-secured grants cover those costs. - Right of first refusal and option agreements: Florida Can would receive a right of first refusal and an option for up to about 54.3 acres of city land for five years at $105,000 per acre if the city receives a bona fide offer from another buyer or if Florida Can elects to purchase directly; the city would receive $5,700,000 if Florida Can exercises the option under the terms discussed. - Closing expectation: staff said they expect to close on or before May 30, subject to final exhibit edits and signature exchange.

Staff warned the package is complex and that some exhibits were being finalized in the 72 hours before the meeting. City Attorney John Murphy and outside counsel Drew Crawford were identified in the meeting as participants in finalizing the legal documents. The city manager said the amendment and option documents may be held in escrow and executed at closing.

Financial and economic tradeoffs City staff framed the transaction as a trade: purchase of a small acreage now to enable construction of a lower-cost road alignment that unlocks a larger industrial tract for development. Commissioners debated the per-acre price and the long-term fiscal calculus. One commissioner estimated more recent nearby sales in the industrial park at several hundred thousand dollars per acre but staff cautioned that recorded transactions often included site work and direct road access, which affects comparability.

The city manager said the project is 'land rich and cash poor' and argued the city would be better off delivering the road and stimulating near-term private investment, jobs and ad valorem growth than building the longer alignment and waiting to recoup costs from future land sales.

No formal vote recorded Staff recommended the commission approve the suite of agreements and authorize the city manager to execute related closing documents. The transcript does not record a formal vote during this session; staff said finalized exhibits would be appended prior to the next meeting and that signatures were being gathered.

What remains uncertain The meeting record shows some commissioners continued to question the arithmetic behind the per-acre price and asked for the underlying comparative sales math; staff and counsel said the city has run the numbers and believes the transaction is fiscally preferable given grant deadlines and the projected economic activity at the industrial site.

Next steps Staff said they would circulate final exhibits, obtain signatures from Ball/Florida Can and seek commission approval to close. The city expects to bid the road construction immediately after closing in order to meet grant performance deadlines.