For years, the former Vaccine and Gene Therapy Institute in Port St. Lucie has sat empty. No one seemed to want it. No offers presented. No interest shown.
That is, until one company stepped forward at the end of June and made a $14.5 million offer. Now, several other companies are courting the city, seeking its blessing to buy the facility.
Just before the Port St. Lucie City Council’s meeting Monday night, the City Manager’s Office received yet another letter of intent, bringing the number of suitors to four.
The offer – $8.5 million – was less than all other tendered letters of intent. “That made my life easier,” City Manager Russ Blackburn told the City Council as he rejected the new proposal quickly.
Another suitor dismissed quickly was Straub Water, which, according to Blackburn, had a “fatal flaw” in its letter of intent. The company wanted to buy the rebranded Florida Center for Biosciences contingent on a condition that neither the city nor the company had control over. Ultimately, the council had to decide to either continue with the original offer from RER Ventures or entertain an offer from Fort Pierce native Robert M. Lloyd Jr., chairman of RTT Molecular Dx, which has locations in Georgia and Toronto, Canada.
“It puts us in an awkward position,” Mayor Gregory Oravec said of having multiple offers for the property and no procedures in place for handling them. He said that the council needs to balance good faith negotiations with RER Ventures with the law and fiduciary responsibility to the citizens.
He wondered hypothetically what would happen if tomorrow someone came in with a $30 million cash offer for the facility.
RTT Molecular Dx originally offered $11.5 million for VGTI but later increased the offer to $14.5 million, to match RER’s offer. Unlike RER, however, RTT said it would pay $11.5 million at closing and pay the remaining amount by the end of 48 months.
RER’s offer was $2.9 million down, 5 percent interest (approximately $580,000 paid annually) on the remainder, and the balance of $11.6 million due after five years.
Oravec said RTT’s offer would be better for the city – it would mean more money upfront – but only if RTT could prove it had the financial wherewithal to make the payments.
Lloyd did not address the financial concerns other than to say he’d been working this last year to come up with the funding, raising the capital. He expressed confidence that he’d get the funding for the purchase.
Lloyd praised the council for its “Taj Mahal of laboratories,” noting he has worked in numerous laboratory facilities around the nation and the city’s VGTI is on par with or better than even those used by the Centers for Disease Control.
He said his plan would be to consolidate his other lab locations in Georgia and Canada, bringing them to Port St. Lucie as well as to work on a feeder program through Indian River State College, Florida A&M University, and the University of Florida – creating a pathway for students to enter a career in the sciences.
“I’m not going to negotiate from the podium,” City Councilman John Carvelli said, explaining that he’d rather move forward with RER Ventures as the city previously committed to. The council noted that there remains time for RTT Molecular Dx to provide proof of financing and other interested parties to submit letters of intent.
The City Council voted 3-2 to approve the draft purchase and sale agreement with RER Ventures, which clears the way for Port St. Lucie to craft an ordinance for the sale. That ordinance would have to be read and approved twice before finalized.
Oravec and Councilwoman Stephanie Morgan voted against approving the purchase and sale agreement, noting they’d rather have more information from RTT.
“What I would like is a best and final offer with a non-refundable deposit in 30 days” or by the second reading of the ordinance from any parties, including RER Ventures and RTT Molecular Dx, the mayor said.
“There’s uncertainty,” Morgan said of moving forward with RER when other have shown interest. “It’s a huge decision.”
Other council members decided they should move forward with the known entity – RER Ventures – and keep the ball rolling on getting the property sold.
