A 2020 property assessment by Driggers Commercial Group of the proposed solar field property under lease was placed at $5.2 million with annual rent of 36 of 130 acres tabbed at about $170,000 per year.
The solar field along with several proposed hangars is up for a vote before the City Commission Tuesday.
The property is part of the lease held by the Amelia River Golf Course. Currently, the undeveloped land generates no additional revenue for the city.
Amelia River Holdings, the lease holder, pays $200,000 per year plus a percentage of revenue to the city.
The Driggers report however said the 2020 fair market rent amount for the golf course property should be $606,000 per year.
"We estimated the value of the site to be a total of $7,575,000. This implies rent of a rounded $606,000 per year, or $3,998 per useable acre of land per year on a triple net basis."
On the solar field, the February 2020 valuation report states: We estimated the value of this site to be a total of $5,275,000. This implies rent of a rounded $422,000 per year, or $4,408 per useable acre of land per year on a triple net basis.
The formular for the lease value was stated as: According to Federal Standards, ground rent for non-aeronautical uses are based on an appraisal, with no current multiplier process established. Rent factors required by the FAA in the past have tended towards 10% to 12% of appraised value.
The report also states: At the request of the client, we provided a value of 95.73-acre subject property as if the property had access from a public access road. Currently, it is surrounded on three sides by the airport property and cannot be accessed with crossing over private airport land.
With a change in the use of airport property, the Federal Aviation Administration will require the city to submit a new valuation of the property. A new lease payment would be established by the FAA based on a 2023 valuation,
The valuation process resulted in the Ybor-Alvarez Sports Complex property being placed at about $400,000 yearly rent from the city to the airport for its continued use for soccer and softball.
"We believe a rent factor of something below the indicators is appropriate for sites as large as the subject. Overall, we believe a rent factor of 8.0% is supported by data provided for competing airports, and also appropriately in line with
market indicators of overall capitalization rates involving more typical ground lease sale transactions and listings of such, as well as listings associated with government occupied real estate. In other words, the rent factor of 8.0% provides a reasonable spread to ensure that there is profit to the entity that spends time and effort at structuring the deal," the report states.
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