Surplus Property Finally Sold

The ongoing saga of the city-owned surplus property on Mainsail Drive continued March 7 when the City of Marco Island received the latest bid results for the property. 

The property previously housed a utility plant operation (no longer functioning), owned by Florida Water Services. It was acquired as part of the contractual acquisition of Florida Water Services assets when purchased by the city.

Originally, it was thought that the tracts of land would be sold by the city for between $1 and $2 Million. However, during the process of putting the property up for sale, an appraisal was done which revealed that because of the property’s zoning, it held no such value as residential tracts of land. The property requires rezoning with Collier County and the subsequent purchase of “density credits” to allow for the construction of housing units.

The two tracts of land located at 1825 and 1955 Mainsail Drive were initially sent out for bid in 2021. Those bids were rejected on January 24 by city council. New appraisals were received, and the properties subsequently listed for sale. Bids were received in mid-February and proposals were received on both properties. 

SK Holdings, LLC of Hollywood, Florida was the only bidder for the purchase of the surplus property, submitting a bid of $261,100 for 1825 Mainsail Drive, and $487,100 for 1955 Mainsail Drive.

Before asking Utility Director Jeff Poteet about the city’s options to use the funds, City Council Chairman Erik Brechnitz first inquired about paying down debt on the Utility Bonds with City Finance Director Gil Polanco. Polanco commented that the city would have to review the “pre-pay penalties” associated with each bond before he could advance a valid number.

Poteet commented that the choice of what to do with the funds would be a council decision. The monies could be used for capital improvements or to pay down debt, which was done in the past when the bonds were “refinanced” as more favorable rates became available. 

Councilor Rich Blonna suggested utilizing the $748,200 sale proceeds to pay for a design study to bring sewers to the Isles of Capri. The sale of Florida Water Services to the City of Marco Island made Isles of Capri part of the city’s recognized wastewater service area.

A representative for SK Holdings, LLC came forward and indicated that if the property is sold to them that they would move forward to address the zoning and purchase of the density units from the Master Planned Unit Development interests.

Councilor Greg Folley saw a benefit to supporting the sale, as it would add units into the potential “workforce housing mix,” therefore benefiting those looking to be employed by the city. 

The Marco Island City Council voted 7-0 to sell the surplus property to SK Holdings, LLC for $748,200.