City of Venice to buy auto dealership site for nearly $12M


Douglas Jeep renovated the building in 2023. While Venice plans to make some enhancements, Assistant City Manager James Clinch called it "almost turnkey."
Douglas Jeep renovated the building in 2023. While Venice plans to make some enhancements, Assistant City Manager James Clinch called it "almost turnkey."
Photo by Elizabeth King
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The Venice City Council has voted unanimously to buy 4.7 acres that had housed a car dealership for $11.8 million. The property at 1280 U.S. 41 Bypass South is owned by Douglas Jeep. 

On top of the purchase price, the city plans to spend about $1 million in updates at the site, where it will relocate its solid waste, recycling and fleet maintenance operations.

“We believe this is a monumental find,” Assistant City Manager James Clinch said at the June 10 meeting where the council authorized the purchase. 

The size of the site, fact that the neighbors are industrial and the zoning is industrial all suit the needs of the city, according to Clinch, who added it will save Venice about $6 million since it will not have to construct a brand-new public works building.

The Douglas Jeep property is “almost turnkey,” Clinch said. It contains a more than 37,000-square-foot building. “This facility is a huge enhancement for our staff,” he added, noting the current public works building at 221 S. Seaboard Ave. is more than 50 years old and has to close during storms. In addition, said Clinch: “It is an active contamination site.”


Contaminated soil

The Seaboard Avenue facility has an active petroleum contamination issue recorded in 1990, according to a memo from Venice Assistant Director of Public Works Ashlee Castle. The problem originated with an old underground fuel storage tank that has since been removed.

The issue has resulted in a new sense of urgency due to seepage, Vice Mayor JIm Boldt said.

“We are pretty confident at this point that we will not get outside the lines as far as seepage and the like if we get out of there in the next year,” Boldt said. “We really needed to get out of there, I think this [purchase is] a great thing.”

A city official confirmed the pressing need to move. In a meeting a few weeks ago with a Sarasota County representative about the contamination, Clinch said: “Their No.1 recommendation is you need to get off of this site."

Since the contaminated soil is underneath the fleet facility, the city cannot begin physical remediation until the staff and equipment are gone, according to Clinch.

Once operations have been relocated, the buildings can be demolished, the soil can be removed and the space can be opened up for future use.


Council questions

A couple of members of the council had questions about the Douglas Jeep property, ranging from location to price.

While the site is outside the city limits, that should not be a problem, Clinch said, responding to a question from council member Ron Smith.

“It’s not necessary to annex it. However, we would certainly like to explore that opportunity,” Clinch said. There is one other property between Douglas Jeep and the city limits, and the land is surrounded by urban forest, he added.

Douglas Jeep no longer has a presence at the site. The dealership building is vacant, and its sign along the US 41 Bypass says that it has moved to 2372 S. Tamiami Trail.

Douglas Jeep has relocated from 1280 US 41 Bypass South in Venice.
Photo by Business Observer Staff

The Jeep dealer purchased the property in 2018 for $2.4 million, according to Sarasota County property records.

Of the new $11.8 million price tag, Councilman Lloyd Weed said, “I was somewhat surprised.” After viewing the appraisals, he added, “I understand that is just the market.”

The property was listed for $12 million, and the average of the two appraisals for the city came in at $11.6 million, according to a memo from Castle. She said the negotiated purchase price of $11.8 million includes about $200,000 to $250,000 of personal property consisting of office suite furniture, vehicle lifts and other fleet maintenance equipment.

Weed added that he would like a breakdown of where the $1 million in enhancements will go.

The Douglas Jeep building was fully renovated in 2023 to function as a pre-owned vehicle mega center, with upgrades including office space, vehicle storage and fleet operation areas, according to Castle. She said required updates will include securing the perimeter, installing new fuel tanks, adding more restrooms and putting in additional walls. Originally, the building was constructed in 1999, according to the two appraisals.


Project funding

Funding for the property at 1280 US 41 Bypass South will come from the Solid Waste Enterprise Fund, General Government Impact Fees Fund and the One-Cent Sales Tax Fund, according to Venice Finance Director Linda Senne. 

The City Council will need to approve a resolution for bond financing later this June that will involve both the public works project and the new fire station, Senne said.

The project budget for the solid waste, recycling and fleet maintenance building had been $18.8 million, Senne said. That involved building a new facility.

But as a result of moving into the already existing building at 1280 US 41 Bypass South, the city will save $6 million and move forward its plans to redevelop the Seaboard District, Clinch said. He added closing on the Douglas Jeep property is planned for September. The contract allows for a 90-day due diligence period.

Terry Purdy of Merritt Realty Corp. is representing Douglas Jeep in the sale, while Michele Fuller of Ian Black Real Estate is representing the city of Venice, according to the contract.

 

author

Elizabeth King

Elizabeth is a business news reporter with the Business Observer, covering primarily Sarasota-Bradenton, in addition to other parts of the region. A graduate of Johns Hopkins University, she previously covered hyperlocal news in Maryland for Patch for 12 years. Now she lives in Sarasota County.

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