The New College of Florida has taken its first steps to acquire the land beneath its East Campus to ensure its long-term future.
With talks about purchasing the land swirling for several years, the college’s Board of Trustees on Monday began its initial landing to acquire 30.9 acres of the 34.8 acres it leases from the Sarasota-Manatee Airport Authority.
The trustees unanimously approved the purchase agreement at a price of $11.5 million.
In 1957, the school and airport entered into a century-long lease on the land.
Per FAA requirements, once the lease expires in 2056, New College will be required to lease the land or acquire the property, either at fair market value. Sarasota-Bradenton International Airport President and CEO Rick Piccolo has been warning the college administration since 2016 that these costs would not be affordable in another 32 years.
Piccolo estimates that these costs could reach $20 million annually to rent, or up to $200 million to purchase the land. That is, if the airport’s future leadership is inclined to do either.
“(The lease) is scheduled to expire in 2056, and with expiration, the property as well as all improvements to the property will revert to the airport,” Bill Galvano, general counsel for the new college, told trustees during Monday’s meeting. “We have reached the initial terms for entering into a purchase and sale agreement to obtain the approval of this board and the approval of the Sarasota-Manatee Airport Authority Board of Directors. “These are two very similar parties, both looking for Sarasota, both looking for the college and both looking for the airport.”
The land bordered by red is land New College has agreed to purchase from Sarasota Bradenton International Airport. The pink site north of General Spatz Boulevard will be retained by the airport.
In his communications with former New College presidents Donal O’Shea and Patricia Oaker, and more recently current president Richard Corcoran, Piccolo proposed acquiring portions of the property gradually over time. However, Corcoran and the Board of Trustees instead chose to acquire the land in one purchase.
The agreement must now be approved by the Airport Authority Board of Directors and the land sold by the Federal Aviation Administration. The airport previously discussed the outlines of a potential agreement with FAA officials, Piccolo said.
“I tried for many years to warn the college of what was on the horizon if this issue was not addressed,” Piccolo told trustees. “One of the key elements to getting this approval is that this land was a gift to the airport by the federal government, so the FAA has a say in this and they have to make sure that none of the land that we are going to put is wanted for sale for aviation purposes.
“We have a master plan that extends through 2040 that shows none of that land is needed, and we understand the importance of the college and the history here.”
The acquisition plan comes as New College begins developing transformation plans for the East Campus. Just before taking up the land purchase, trustees saw a conceptual presentation of the site that included a multi-purpose field, track and field facilities and bleachers, a parking structure, a baseball field, a softball field and more.
Purchasing the land removes a critical hurdle to starting strategic redevelopment initiatives.
“Securing New College’s future by resolving the leases and acquiring this land has been a top priority since my arrival in February,” Corcoran said in a press release. “SRQ is a great neighbor, and the deal we have initiated will benefit both organizations, which in turn will uplift our entire region.”
As for the airport, it will receive $11.5 million to help fund its master plan, which eventually includes a parking structure on the existing short-term parking lot and more surface parking. It will retain approximately 4 acres north of General Spatz Parkway that are essential to maintaining aviation operations.
“We have reclaimed 3.88 acres at no cost to the airport. It is actually our land, but tied up for another 32 years under the current lease,” Piccolo told the Observer. “This space is worth about $1.5 million at these agreed-upon prices. We also obtain perpetual easements on lands already owned by New College over which we had no control. Educational facilities are exempt from local permitting rules under state law, so we would have no way to prevent new college development that would have either shortened or closed our crosswind runway.
Once approved by the Airport Authority, New College will enter into a 90-day inspection and survey period during which the actual acreage will be calculated and a final price determined based on the cost per acre in the purchase agreement. That comes out to more than $372,000 per acre. Both parties expect to close the purchase in early 2024.
“This price is very fair, a very good price for New College and provides stability for us moving forward,” Galvano said.
“It provides a long-term presence for New College and the ability to improve facilities on the east side of US 41,” Piccolo told the Observer. “It pays fair market value to the airport for the land and this revenue will be used to further improve facilities at the airport, and provides protection from land development in the runway protection zone at Runway 4 which could have affected future use.” From the runway.”
New College of Florida has recently announced its decision to purchase 31 acres of land from the Sarasota-Bradenton International Airport. This strategic move will provide the college with additional space to expand and grow, further solidifying its presence in the Sarasota community. The land acquisition represents a significant investment in the future of the institution, and will undoubtedly contribute to its continued success and development. With this purchase, New College is poised to enhance its academic offerings and create new opportunities for students and faculty alike.