ACTION ITEM
SPONSOR: Teniade Broughton, Chairperson
SUBJECT:
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RESOLUTION NO. 2023-03 CRA - APPROVING MASTER REDEVELOPMENT AGREEMENT FOR SPRING STREETSCAPE IMPROVEMENTS FROM GARDEN TO ROMANA
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RECOMMENDATION:
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That the Community Redevelopment Agency (CRA) adopt Resolution No. 2023-03 CRA authorizing a Master Redevelopment Agreement with the City, 200 West Garden LLC and 97 Spring Condos LLC for the development of streetscape improvements on Spring Street from Garden to Romana Street. Further, that the CRA authorize the CRA Chairperson to execute and take all actions necessary to carry out the agreement.
A RESOLUTION OF THE PENSACOLA COMMUNITY REDEVELOPMENT AGENCY RELATING TO COMMUNITY REDEVELOPMENT WITHIN THE URBAN CORE COMMUNITY REDEVELOPMENT AREA; PROVIDING FINDINGS; APPROVING AND AUTHORIZING EXECUTION OF A MASTER REDEVELOPMENT AGREEMENT BETWEEN THE AGENCY, THE CITY OF PENSACOLA, FLORIDA, 200 WEST GARDEN LLC AND 97 SPRING CONDOS LLC, PROVIDING FOR THE REDEVELOPMENT OF CERTAIN PROPERTY LOCATED IN THE REDEVELOPMENT AREA CONSISTING OF RIGHT OF WAY, STREETSCAPE IMPROVEMENTS; AND PROVIDING AN EFFECTIVE DATE.
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SUMMARY:
On February 6, 2023, Bearing Point Properties presented their proposed plans for a mixed-use development including 328 residential rental units, 54 for-sale condominium units, a large-scale grocery retail space, 2 pocket parks, and a multi-level structured parking facility including approximately 175 ungated parking spaces. The proposed project is a master-planned redevelopment located at the intersection of Garden and Spring Streets, which is slated for redevelopment by developers, 200 West Garden, LLC and 97 Spring Condos LLC (collectively, the “Developer”).
As a component of the redevelopment project, the developers have requested to partner with the CRA to undertake streetscape improvements along Spring Street from Garden Street to Romana Street. The Developer is requesting a redevelopment incentive of up to $1,482,278 towards the full cost of the streetscape improvements, estimated to be $2,371,645 pursuant to a Master Redevelopment Agreement (MRA). The proposed MRA requires the Developer to construct the full mixed use redevelopment project, except for the 54-condominium units to receive the redevelopment incentive. Pursuant to the MRA, the CRA would escrow the redevelopment incentive with a mutually-acceptable escrow agent upon completion of the streetscape improvements and completion and opening of the parking garage and grocery retail space to the public. The escrow agent would be instructed to release the redevelopment incentive to the Developer upon substantial completion of the 328 residential rental units. The Developer must complete the remaining 328 residential units within thirty-six (36) months of the escrow of the redevelopment incentive or it will be subject to repayment. The project encompassed by the MRA is estimated to have a total taxable value of $45,000,000.
In the event that available CRA budgets are insufficient to cover the full cost of the redevelopment incentive at the time that payment is due to the Developer, the City will issue a loan to the CRA for the balance necessary to provide for the payment. The loan will be repaid to the City over a maximum of a three-year period along with 4.5 % interest.
Upon completion, and prior to acceptance of the streetscape improvements, the Developer will issue to the City a warranty bond that will serve as a guarantee for the streetscape improvements for a period of 18 months.
Implementation of this project will further the goals and objectives set forth in the Urban Core Redevelopment Plan, which expressly contemplates and encourages redevelopment and enhancement of public rights-of-way and pedestrian walkways and provides private sector participation in remediating and preventing blighted conditions.
Resolution No. 2023-03 CRA and the proposed Master Redevelopment Agreement, including preliminary plans are attached.
PRIOR ACTION:
February 9, 2023 - Bearing Point Properties presented to the CRA proposed plans for a mixed-use development at Spring and Garden Streets.
FUNDING:
Budget: $ 1,621,597.48
Actual: $ 1,482,278.00 Redevelopment Incentive
$ 139,319.48 (Estimated Interest)
$ 1,621,597.48
FINANCIAL IMPACT:
The CRA will provide a redevelopment incentive in an amount not to exceed $1,482,278, which will be paid with Urban Core Redevelopment District Trust Fund Revenues. In the event that the budget to cover the full amount of the redevelopment incentive is not available at the time of payment, the City will issue a loan to the CRA for the balance due plus 4.5% interest.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
5/1/2023
STAFF CONTACT:
David Forte, Deputy City Administrator
Sherry Morris, Development Services Director
Victoria D’Angelo, CRA Division Manager
Amy Lovoy, Chief Financial Officer
ATTACHMENTS:
1) Resolution No. 2023-03 CRA
2) Master Redevelopment Agreement
PRESENTATION: No end