The purchase and sale agreement is awaiting the Port St. Lucie City Council’s blessing and signing, which could happen as early as Sept. 10. The ink was barely dry on the part of the buyer when the City Council approved Monday night the ordinance that will clear the way for the sale.
No new offers have been tendered and no proof of funding has been provided by others who have sought to buy the former VGTI facility, according to City Manager Russ Blackburn.
With minimal discussion and no provided input from the audience, the council unanimously approved the ordinance. That ordinance is required per City Charter in order for the city to convey property to a buyer, according to the city’s legal team.
Blackburn reminded the council that the city has been carrying the property for about $1.5 million annually and had to pay approximately $400,000 in taxes the year the city took ownership of the facility when the Vaccine and Gene Therapy Institute defaulted and walked away.
“We’re working, basically, to fix that problem,” said Councilman John Carvelli.
Treasure Coast businessman Vernon Smith sat in the audience Monday night but did not officially address the council as he has done in the past. Smith has called on the council to reconsider selling the VGTI facility to RER Ventures and, instead, reappraise the facility and get a better price.
Smith has told the council he believes the property – building and all – is worth well more than the $14.5 million appraisal and sales price.
Mayor Gregory Oravec has differed, opining that if the property were worth more, the city would be getting offers for higher prices.
At a council meeting earlier this month, Smith raised a concern about a potential conflict of interest between the city’s broker, Avison & Young, and the buyer, RER Ventures.
Blackburn told St. Lucie Voice prior to this week’s meeting that he was researching the matter and had not yet determined if such a conflict would necessitate a remedy.
Blackburn said the matter involves a partner at Avison & Young, someone the city has not dealt with much, having a stake in an operation that RER Ventures owner Chris Kallivokas is a part of.
The city manager said it could be a potential conflict of interest that simply was not disclosed.
“It’s not uncommon to have conflicts,” he told St. Lucie Voice, but whether the conflict is egregious enough to derail the potential sale of VGTI – now known as the Florida Center for Biosciences – remained to be determined.
The matter was not raised during Monday night’s council meeting and plans call for RER Venture’s purchase and sale agreement to be presented to the City Council at the next meeting, Sept. 10.
If approved, RER Ventures will have 90 days to complete its due diligence. Assuming no surprises occur during that period, RER will have 30 days to close the sale.