LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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APPROVAL OF THE TERM SHEET BETWEEN THE CITY OF PENSACOLA AND INSPIRED COMMUNITIES OF FLORIDA, LLC (INSPIRED) FOR THE DEVELOPMENT OF LOTS 4 AND 5 AT THE COMMUNITY MARITIME PARK
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RECOMMENDATION:
recommendation
That the City Council approve in concept the term sheet between the City of Pensacola and Inspired Communities of Florida, LLC. The Mayor or designee will then use this term sheet to negotiate a final lease that will be returned to City Council for their approval.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
On June 30 2021, the City Council received proposals from firms interested in developing lots 4 and 5 at the Community Maritime Park (CMP). Three qualified proposals were received. On July 28, 2021, the Council ranked Carson-Lovell as the #1 ranked firm and authorized the Mayor or his designee to attempt negotiations with this firm for a period of 60 days. These negotiations were ultimately unsuccessful; so the City began negotiations with Inspired as the #2 ranked firm.
The Mayor is now ready to recommend and request that the council approve in concept the terms with Inspired for the lease of lots 4 & 5. These terms include:
• 500-600 rental apartments
o Built in 2 phases
o Total completion of both phases by January 1, 2028
o Will require transferring density from other parcels
• Between 10,000 and 50,000 square feet of commercial space
• At least $110,000,000 in capital investment
• Construction of a 900 space parking garage with an estimated total cost of $22,500,000.
o The City will pay for 50%
o Inspired will retain ownership of the garage
o The city will operate and maintain the garage
• Ground Lease of $500,000 annually commencing as follows:
o Upon receipt of a certificate of occupancy for the first phase (no later than 1/1/25), $325,000 annually if development occurs first on the northern half of the site and $275,000 annually if development occurs first on the southern half of the site
o Upon receipt of certificate of occupancy for phase 2 (no later than 1/1/28), $500,000
o Lease will increase 5% every 5 years
• City will rebate 75% of the total taxes paid to the Urban Core Community Redevelopment Agency (CRA) for the first 10 years of each phase of development and 50% of the second 10 years of each phase of development commencing with the CO’s issued for each phase.
o The tax rebate granted for phase 2 will run beyond the sunset date of the Urban Core CRA. The City will need to make the final tax rebate payments from other available revenue sources.
PRIOR ACTION:
April 22, 2021 - City Council approved the publication of the public notice for disposition of Lots 4 and 5 at the Community Maritime Park for redevelopment.
July 12, 2021 - City Council approved the scheduling of a special meeting regarding the redevelopment submitting groups and ranking
July 28, 2021 - City Council ranked the submittals for Parcels 4 & 5 and set in place a mechanism for movement to the next in line if negotiations fail.
October 14, 2021 - City Council rejected an MOU from Carson Lovell, seemingly then moving to the next in line, Inspired Communities
FUNDING:
N/A
FINANCIAL IMPACT:
The intent of these terms is to present to the City Council a lease that will have a net positive return over the life of the Urban Core Community Redevelopment Agency
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
1/31/2022
STAFF CONTACT:
Kerrith Fiddler, City Administrator
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ATTACHMENTS:
1) ICF Maritime 45 Term Sheet Final
PRESENTATION: No end