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A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF POMPANO BEACH, FLORIDA, APPROVING AND AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF POMPANO BEACH, POMPANO BEACH COMMUNITY REDEVELOPMENT AGENCY AND SONATA APARTMENTS, LTD. TO BUILD A 121-UNIT MIXED USE, MIXED INCOME HOUSING DEVELOPMENT WITH APPROXIMATELY 3500 SQ. FT. OF RETAIL SPACE (“SONATA PROJECT”) ON UNIMPROVED VACANT LAND OWNED BY THE CITY LOCATED WEST OF DIXIE HIGHWAY BETWEEN NW 6TH STREET AND NW 8TH COURT, TO PROVIDE FINANCIAL ASSISTANCE IN THE FORM OF A $783,250 LOAN WITH RECAPTURE PROVISIONS AND TO ACCEPT THE DECLARATION OF COVENANT AND RESTRICTIONS; APPROVING AND AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE A LEASE BETWEEN THE CITY OF POMPANO BEACH AND SONATA APARTMENTS, LTD. RELATING TO THE CONSTRUCTION AND OPERATION OF THE SONATA PROJECT; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: Revenue $50,000 ($1,000 per year for term of lease); Expense $783,250 Affordable Housing Loan)
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(Staff Contact: Cassandra LeMasurier)
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Summary Explanation/Background:
Sonata Apartments Ltd. (“Developer”) has received site plan approval to construct a 121-unit mixed-use and mixed-income rental community (“Project”) at Dixie Highway and NW 8th Street with 3,500 square feet of commercial space fronting the west side of Dixie Highway. The project area consists of three (3) privately owned parcels and a portion of six (6) City parcels on the west side of Dixie Highway between NW 6th Street and NW 8th Street.
The City will enter into a fifty (50) year lease with the Developer for the lease area of the six (6) City-owned parcels, with the Developer’s capital improvements being construction of the Project. The Developer will pay $1,000 per year to the City for the lease of the City parcels.
The City parcels are currently providing drainage for Dixie Highway via a catch basin and detention area. The Developer will relocate the drainage, with the Pompano Beach CRA (“CRA”) reimbursing the Developer up to $420,000.
The City, CRA and Developer will enter into a Development Agreement, included as Exhibit B to the lease, to formalize the commitment of the City to lease the City-owned property to the Developer and provide a $783,250 Affordable Housing Loan from the City’s Affordable Housing Trust Fund to the Developer, the CRA to reimburse the Developer drainage relocation and the CRA contribution of $1,500,000 toward public infrastructure costs. It will also formalize and Developer’s commitment to lease the retail space proposed in the Project to the CRA and to construct and install up to $150,000 in tenant improvements as directed and required by the CRA.
The lease and Development Agreement are contingent upon the Developer’s Request for Funding Application submitted to the Florida Housing Finance Corporation for tax credit funding being approved for complete funding for the Project. If the Developer does not obtain the required funding the agreement and lease will terminate effective immediately.
Staff is requesting City Commission approval of the lease, loan and development agreement.
Origin of request for this action: Staff
Fiscal impact and source of funding: Annual Revenue $1,000; Expense $783,250 Affordable Housing Loan from City’s Affordable Housing Trust Fund with the attached budget adjustment.
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RStrategic Plan Initiative
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Goal 1 Preferred Place to Live; Objective 7 - Have quality, affordable housing options for all family generations, including senior housing