Subject:
Title
Termination of Land Use Restriction Agreement- Greenway Lofts Affordable Housing Development.
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Termination of Land Use Restriction Agreement between the Housing Finance Authority (HFA), Contemporary Housing Alternatives of Florida, Inc. (CHAF) and Pinellas County.
• The County provided Penny for Pinellas funding to acquire the subject property located at 4500 43rd Street North in Lealman for affordable housing development.
• The HFA and the County executed the Pinellas County Land Assembly Trust- Greenway Lofts Agreement on March 28, 2018. The HFA serves as the Trustee of the Trust. The County is the Beneficiary.
• The HFA and CHAF executed a Ground Lease on July 10, 2018 for the Greenway Lofts Affordable Housing Development. The lease required CHAF to complete construction of a 28-unit affordable housing multifamily residential complex by July 10, 2021.
• CHAF completed site plans and design work. Project construction bids were above cost estimates and project progress was significantly delayed by cost increases and project financing challenges.
• Based on negotiations with CHAF, on June 10, 2021, the County Administrator executed a Direction Letter to the HFA to amend the term of the ground lease agreement between the HFA and CHAF to extend the term of the Ground Lease 24 months to July 10, 2023, providing additional time for the completion of the project. The proposed amendment included project milestone deadline requirements commencing on August 13, 2021 through July 10, 2023.
• On July 2, 2012, CHAF notified the County and HFA that CHAF would not be proceeding with the project.
• On July 21, 2021, the Director of the Housing and Community Development Department executed a Direction Letter to the HFA to terminate the Ground Lease, Memorandum of Ground Lease, and Land Use Restriction agreements between the HFA and CHAF.
• The HFA has prepared and executed all termination documents.
• The HFA requested to transfer the property to the County.
• A Request for Negotiation (RFN) is being prepared for issuance to solicit new proposals and select a new developer to build affordable housing on the site.
• The County will incur carrying costs for the property until it is leased to a new developer.
Strategic Plan:
Foster Continual Economic Growth and Vitality
4.2 Invest in communities that need the most
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources
Summary:
Summary
The HFA and the County executed the Pinellas County Land Assembly Trust- Greenway Lofts Agreement on March 28, 2018. The HFA serves as the Trustee of the Trust. The County is the Beneficiary. The HFA and CHAF executed a Ground Lease on July 10, 2018 for the Greenway Lofts Affordable Housing Development. The lease required CHAF to complete construction of the 28-unit affordable housing multifamily residential complex by July 10, 2021.
CHAF completed site plans and design work. Project construction bids were above cost estimates and project progress was significantly delayed by cost increases and project financing challenges.
Based on negotiations with CHAF, on June 10, 2021, the County Administrator executed a Direction Letter to the HFA to amend the term of the ground lease agreement between the HFA and CHAF to extend the term of the Ground Lease 24 months to July 10, 2023, providing additional time for the completion of the project. The proposed amendment included project milestone deadline requirements commencing on August 13, 2021 through July 10, 2023. On July 2, 2012, CHAF notified the County and HFA that CHAF would not be proceeding with the project.
On July 21, 2021, the Director of the Housing and Community Development Department executed a Direction Letter to the HFA to terminate the Ground Lease, Memorandum of Ground Lease, and Land Use Restriction agreements between the HFA and CHAF.
The HFA has prepared and executed all termination documents.
The HFA requested to deed the property back to the County. A RFN is being prepared for issuance to solicit new proposals and select a new developer to build affordable housing on the site. The County will incur carrying costs for the property until it is leased to a new developer.
Body
Background Information:
The County provided Penny for Pinellas funding to acquire the subject property located at 4500 43rd Street North in Lealman for affordable housing development.
The County authorized the HFA, serving as the Trustee of the Pinellas County Land Assembly Trust and CHAF to enter into a Land Trust Agreement on March 28, 2018 and a Ground Lease Agreement on July 10, 2018 for the Greenway Lofts Affordable Housing Development. The County is a beneficiary to the Land Use Restriction Agreement and is required to sign the termination agreement.
Fiscal Impact:
HFA fees: $8,500.00; Property holding and maintenance 12-month cost estimate: $9,600.00; Total $18,100.00. Source: Penny for Pinellas
Staff Member Responsible:
Carol Stricklin, Director, Housing and Community Development Department
Partners:
Housing Finance Authority of Pinellas County
Contemporary Housing Alternates of Florida, Inc.
Attachments:
HFA Greenway Lofts Termination of Land Use Restriction Agreement
HFA Greenway Lofts Termination of Memorandum of Ground Lease
HFA Greenway Lofts Termination of Land Trust Ground Lease Agreement
HFA Greenway Lofts Quit Claim Deed
Greenway Lofts Termination of Agreements Direction Letter, July 21, 2021
Greenway Lofts Term Extension Direction Letter, June 10, 2021
Greenway Lofts Ground Lease, July 10, 2018
Greenway Lofts Land Trust Agreement, March 28, 2018