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 ADOPT First Amendment to the Interlocal Agreement among Broward County, the City of Oakland Park, and the Oakland Park Community Redevelopment Agency for the Oakland Park Square Redevelopment Project (“ILA”), to extend the ILA term by three years to terminate on September 30, 2032; and authorize the Mayor and Clerk to execute same. (Commission District 4)
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Why Action is Necessary
Board approval is required to amend interlocal agreements.
What Action Accomplishes
Approves the First Amendment to an ILA between the County, the City of Oakland Park, and (“City”) the Oakland Park Community Redevelopment Agency (“CRA”), extending the term by three years to terminate on September 30, 2032.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
The Board originally approved the ILA at the May 21, 2019, meeting (Agenda Item No. 52).
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 economic opportunities and a sustainable economy, with an emphasis on Broward's lower and middle class."
On May 21, 2019, the Board approved an ILA to provide $1,100,000 in funding in connection with the City’s mixed-use redevelopment project known as the Sky Building Project (f/k/a, the Oakland Park Square Redevelopment Project, the “Project”), which includes 87 residential units, 11 live-work units, 34,600 square feet of retail/commercial uses, 29,000 square feet of office space to house the relocated Oakland Park City Hall, and 343 structured parking spaces, in the area depicted in Exhibit 3. The ILA gave a six-year deadline for project completion, or no funds would be transferred to the City.
Housing Finance Division (“HFD”) staff received a letter dated May 31, 2024, with a Project update and requesting a three-year extension of the ILA with a new termination date of September 30, 2032 (Exhibit 2). The letter confirms that the Project has made significant development progress but has encountered several setbacks due to COVID-19, rising construction costs and interest rates, developer agreement negotiations, and supply chain issues that have negatively impacted the Project timeline. The Project is currently under construction with a Temporary Certificate of Occupancy anticipated in December of 2024. The extension request would give adequate time for Project completion and to preserve the City’s ability to realize the full value of the $1,100,000 in financial contribution from the County, to be paid in annual installments equal to the County’s share of ad valorem taxes each year. The estimated time period to pay off the funding commitment is five years from the project being placed on the property tax rolls.
Based on the City’s request, the County Attorney’s office prepared an ILA amendment (Exhibit 1), that was approved by the City’s Commission on July 17, 2024.
Approval of the motion would approve the ILA Amendment and establish a termination date of September 30, 2032.
Source of Additional Information
Ralph Stone, Director, Housing Finance Division, (954) 357-5320.
Fiscal Impact
Fiscal Impact/Cost Summary
The funding of $1,100,000 will be offset by the County share of taxes generated from the Project when the entire Project is placed on the Property Appraiser's tax roll.