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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 FUTURE ADVANCE AGREEMENT WITH, AND ACCEPT A PROMISSORY NOTE FROM, CAPTIVA COVE III ASSOCIATES, LTD., TO PROVIDE FINANCIAL ASSISTANCE IN THE FORM OF A $250,000 LOAN, AS PROVIDED AND SECURED BY THE MARCH 17, 2023 MORTGAGE AND SECURITY AGREEMENT EXECUTED BETWEEN THE PARTIES, TO COMPLETE CONSTRUCTION OF A NEW 106-UNIT AFFORDABLE HOUSING DEVELOPMENT LOCATED 740 SW 11TH STREET; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: $250,000 Affordable Housing Trust Fund)
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(Staff Contact: Miriam Carrillo/Alex Goldstein)
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Summary Explanation/Background:
The purpose of this request is to secure $250,000 in Affordable Housing Trust Funds from the City to help offset the cost increases that are adversely affecting the community.
The Captiva Cove Phase III project originally funded through HOME-ARP grant funds, a vital community development initiative, is facing significant challenges due to unexpected cost increases. One of the most critical issues impacting all aspects of the project is the switchgear shortage, resulting in a delay in delivery currently estimated at about 50 weeks. This delay has created several challenges, adversely affecting the project's timeline and overall costs.
The switchgear shortage has led to an extended construction period, impacting subcontractors who were initially planning for a 12-month project duration. With the extended timeline, subcontractors are now required to be on-site for 18 months, leading to increased labor costs, general conditions, and overhead. Subcontractors, facing probable unanticipated inflation in materials and supplies, have found it necessary to charge more for their work to cover these additional costs.
In addition, subcontractors not directly affected by the extended construction period are requesting increases in their contracts due to inflation. In such cases,...
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