LEGISLATIVE ACTION ITEM
SPONSOR: City Council Member Teniadé Broughton
SUBJECT:
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INTERLOCAL AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY FOR FUNDING OF STREETSCAPE IMPROVEMENTS TO SPRING STREET PURSUANT TO A MASTER REDEVELOPMENT AGREEMENT
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RECOMMENDATION:
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That the City Council approve an interlocal agreement between the City of Pensacola (City) and the Community Redevelopment Agency (CRA), to permit the City to issue to the CRA a loan of up to $1,482,278 plus $139,329.48 in capitalized interest for a total value of $1,621,597.48 to fund streetscape improvements along Spring Street from Garden to Romana Streets pursuant to the Master Redevelopment Agreement between the CRA, the City and 200 West Garden LLC and 27 Spring Condos, LLC. Provided, however, that the CRA may pre-pay the balance of the loan in whole or in part at any time, without penalty. Finally, that the City Council authorize the Mayor to execute the agreement, consistent with the terms of the agreement and the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
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, two 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.
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.
To fund the project, a City loan can be issued to the CRA. The loan would be issued ten days prior to escrow of the redevelopment incentive. Principal and interest, at a rate of 4.5%, would be repaid to the City semi-annually. The CRA may prepay the principal balance of the loan in whole or in part at any time, without penalty. The CRA would escrow the redevelopment incentive to the Developer upon completion of the streetscape improvements and completion and opening of the parking garage and grocery retail space to the public, in accordance with the MRA with the Developer.
An interlocal agreement between the CRA and City is required to provide for the City loan. The repayment schedule, assuming no pre-payment, is attached as Attachment A within the interlocal agreement.
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.
PRIOR ACTION:
February 6, 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 Loan Principal
$ 139,319.48 Loan Interest (4.5%)
$ 1,621,597.48
FINANCIAL IMPACT:
The City would provide the CRA a loan of up to $1,482,278 plus $139,319.48 in capitalized interest for a total loan value of $1,621,597.48 for a 3-year term.
STAFF CONTACT:
Don Kraher, Council Executive
David Forte, Deputy City Administrator
Sherry Morris, Development Services Director
Victoria D’Angelo, CRA Division Manager
Amy Lovoy, Chief Financial Officer
ATTACHMENTS:
1) Interlocal Agreement - City-CRA - Spring St. Streetscape
PRESENTATION: No