Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Resilient Environment Division: Housing Finance Division
Information
Requested Action
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MOTION TO APPROVE Funding Agreement between Broward County and 1055 N Federal, LLC (“Owner”), providing funding to Owner in the total aggregate amount not to exceed $5,450,000 to facilitate the development of a minimum of 365 mixed-income dwelling units in the City of Fort Lauderdale (“Agreement”); to authorize the County Administrator to execute the Agreement; and to authorize the County Administrator to take all necessary administrative and budgetary actions to implement same. (Commission District 4)
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Why Action is Necessary
Approval by the Board of County Commissioners is required to enter into the Agreement.
What Action Accomplishes
Approves a Funding Agreement to provide funding up to $5,450,000 for the construction of the Cove Project, a housing development comprising a minimum of 365 dwelling units, of which 55% of the units will be income restricted to households earning up to 120% Area Median Income (“AMI”) for a period of 30 years following the project completion date.
Goal Related Icon(s)
☒County Commission
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Previous Action Taken
None taken.
Summary Explanation/Background
THE RESILIENT ENVIRONMENT DEPARTMENT AND THE HOUSING FINANCE DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
This item supports the Board’s Value of “Ensuring residents have an affordable place to live by offering sustainable, compatible, innovative, accessible, affordable housing options for all income levels, including integrated, permanent supportive housing and zoning that helps residents build equity."
The Cove Project is proposed to be an eight-story mixed use multi-family development with 376 residential one, two and three bedroom units (which number of units may be reduced if required by applicable federal, state, county, municipal or other applicable governmental authorities; provided, however, in no event shall the total number of rental units be less than 365 units) with an attached parking structure containing approximately 540 spaces and a 1,370 square foot ground floor retail space and other amenities. The Cove Project is generally located at the Northwest intersection of East Sunrise Boulevard and North Federal Highway (Exhibit 2).
To facilitate the construction of the Cove Project and to provide affordable/workforce rental units, the City of Fort Lauderdale (“City”) has agreed to provide tax incentives to the Owner to develop the Cove Project. On November 19, 2024, the City adopted Resolution #24-1101 authorizing contribution to Owner of 100% of the City’s portion of the collected tax revenues generated by the Cove Project to the City for 15 years for a total amount not to exceed $8,832,340.
The Funding Agreement (“Agreement”) (Exhibit 1) provides for a similar funding structure as the City’s. Under the Agreement, the County will provide funding to the Owner, on an annual basis for a period of 30 years, equal to 50% of the County’s real property ad valorem annual tax increment revenue from the Cove Project paid to the County, not to exceed an aggregate amount of $5,450,000. This funding is derived from future tax revenue that will be generated by the project at completion and therefore represents a no-risk investment for the County. The continuation of the Agreement beyond the end of any County fiscal year is subject to the appropriation and availability of funds. The County’s payment of the funds to Owner is contingent on 1) completion of the Cove Project, and 2) the yearly payment by Owner of all ad valorem taxes on the property. The Agreement authorizes the County Administrator to approve minor technical and specific tax-related amendments that do not materially alter the terms of the Agreement or impose additional material financial risk on the County, subject to review and approval for legal sufficiency by the Office of the County Attorney.
Fifty-five percent of the total 376 anticipated dwelling units in the Cove Project will be affordable for households earning up to 120% of AMI, with a minimum of 200 units set aside for affordable/workforce housing for households earning up to 120% of AMI. These units will remain income restricted for 30 years from the project's completion.
After development, the assessed value is expected to increase by $92,856,190 yielding approximately $509,576 in ad valorem tax revenue to the County in the first year after project completion.
Source of Additional Information
Ralph Stone, Director, Housing Finance Division (954) 357-5320.
Fiscal Impact
Fiscal Impact/Cost Summary
The funding of $5,450,000 will be offset by one half (50%) the County share of taxes generated annually from the Cove Project when placed on the Property Appraiser's tax roll.