Item F3LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date:Department:
February 10, 2016Land Authority
Bulk Item:Staff Contact / Phone #:
Yes No XMark Rosch / 295-5180
__________________________________________________________________________________
Agenda Item Wording:
Approval of a resolution adding a portion of PearyCourt in Key West to the
Acquisition List and authorizing funding toward the City of Key West’s purchase of said property for
affordable housing.
__________________________________________________________________________________
Item Background:
The Key West City Commission is considering purchasing a portion of Peary Court
in Key West for affordable workforce housing. The proposed transaction calls for the City to purchase
157 existing units and the rights to build 3 additional units (for a total of 160units) together with a
perpetual affordable housing deed restriction encumbering 48 units the Seller is preparing to build. The
proposed purchase price is $55 million, of which the City proposes to pay using $10 million of Land
Authority funds and $45 million from the sale of revenue bonds. Both the acquisition of the property
and the issuance of the bonds are subject to approval by Key West voterson March 15, 2016.The
Southeast Florida Regional Climate Change Compact 50-year sea level rise projectionis 14 to 26
inches by the year 2060. In the event of a 24-inch increase in sea level, estimates provided by the
South Florida Water Management District indicate approximately 11% of Peary Court will have a 25.1%
to 100% probability of being inundated.
The Key West City Commission has nominated the subject property and requested $10 million via
Resolution 16-041. The requested funds would come from the $12.2 million the Land Authorityhas
budgeted for acquisitions in Key West. These funds consist of tourist impact tax collected in Key West
andstatutorily restricted for use in Key West.
__________________________________________________________________________________
Advisory Committee Action:
On January 21, 2016the Committee voted 5/0toapprove this
resolution.
__________________________________________________________________________________
Previous Governing Board Action:
None.
__________________________________________________________________________________
Contract/Agreement Changes:
N/A
__________________________________________________________________________________
Staff Recommendation:
Approval
__________________________________________________________________________________
Total Cost:Indirect Cost:Budgeted:
$10,000,000$______Yes X No .
Cost to Land Authority:Source of Funds:
$10,000,000Land Authority
(Tourist Impact Tax collected in Key West)
Revenue Producing:Amount per Month:Year:
Yes No X________ ________
Approved By:
Attorney XCounty Land Steward .
Documentation:
Included: XNot Required: .
Disposition:
Agenda Item ____
Aerial Photograph of Subject Property
Peary Court
Key West
RESOLUTION NO. ___________
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY ADDING A
PORTION OF PEARY COURT IN KEY WEST TO THE
ACQUSITION LIST AND AUTHORIZING FUNDING TOWARD
THE CITY OF KEY WEST’S PURCHASE OF SAID PROPERTY
FOR AFFORDABLE HOUSING.
______________________________________________
WHEREAS, section 380.0666(3), Florida Statutes and section 2-398Monroe County Code
empower the Monroe County Comprehensive Plan Land Authority (hereinafter “Land Authority”)
to acquire and disposeof interests in real property for the purpose of providing affordable
housing; and
WHEREAS, on December 10, 2015, Key West City Commission approved Ordinance No. 15-
15, which calls for a referendum to be placed on the ballot for the March 15, 2016 election
regarding whether the City of Key West (hereinafter “City”) should acquire that portion of Peary
Court containing 157 existing dwelling units (hereinafter “Subject Property”) for the purpose of
providing workforce housing;and
WHEREAS, the City has nominated the Subject Property for inclusion on the Land Authority
Acquisition List and requests $10,000,000toward the purchase of the Subject Property via
Resolution 16-041; and
WHEREAS, the Land Authority Advisory Committee considered this resolution at ameeting
held on January 21, 2016and voted 5/0to recommend approval;NOW, THEREFORE,
BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND
AUTHORITY:
Section 1. The Subject Property is hereby added to the Land Authority AcquisitionListas an
affordable housing site.
Section 2.At closing, the Land Authority Executive Director is authorized to disburse
$10,000,000 toward the City of Key West’s purchase of the Subject Property provided the City’s
title to the Subject Property is restricted by the affordability covenants in Exhibit A.
Page 1of 2
Section 3. This authorization of funding shall expire on January 21, 2017, unless extended by
the Land Authority.
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a
regular meeting on this _____day of _______________, 2016.
MayorHeather Carruthers_____
Vice ChairmanDanny Kolhage_____
CommissionerSylvia Murphy_____
CommissionerGeorge Neugent_____
ChairmanDavid Rice_____
(Seal)
ATTEST:MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
________________________________________________
Mark J. RoschDavid P. Rice
Executive DirectorChairman
Approved as to form and legality:
________________________
Adele V. Stones, Esquire
Page 2of 2
EXHIBIT A
AFFORDABILITY COVENENTS
Subject to the following restrictions imposed by and which run in favor of the Monroe County
Comprehensive Plan Land Authority, a land authority under Section 380.0663(1), Florida
Statutes and Monroe County OrdinanceNo.031-1986.
1.Term. These affordability covenants are perpetual, run with the land, and are binding on all
present and subsequent owners and mortgagees.
2.Property Use. Use of the property shall be restricted to the provision of affordable housing
as definedin section 380.0666(3), Florida Statutes.
APPRAISALREPORT
PropertyType:
157UNITRESIDENTIALMULTI-FAMILYAPARTMENTCOMPLEX
CommonlyKnownAs:
PearyCourtAtKeyWest
541WS
HITETREET
KeyWest,Florida33040
PreparedFor:
Mr.JamesK.Scholl,CityManager
CityofKeyWest
P.O.Box1409
KeyWest,FL33041-1409
ValuationDate:
September18,2015
PreparedBy:
JamesE.Wilson,MRICS,President
State-certifiedgeneralappraiser
RZ2164
APPRAISALCOMPANYOFKEYWEST
3144NorthsideDrive,Suite201
KeyWest,Florida33040
OURFILENO.:
220-15
October28,2015
Mr.JamesK.Scholl,CityManager
CityofKeyWest
P.O.Box1409
KeyWest,FL33040
Subject:AppraisalReportof:
PearyCourtAtKeyWest
541WhiteStreet
KeyWest,MonroeCounty,Florida33040
OurFileNo.:220-15
DearMr.Scholl:
IhaveperformedanAppraisalReportandformedmyopinionofthe“AsIs”MarketValueofthe
abovereferencedpropertyasofSeptember18,2015.Theassumptionsandtherealestatereferenced
abovearemoreclearlydefinedintheGeneralandExtraordinaryAssumptionsandLimiting
ConditionsplusinthePropertyDescriptionsectionofthisreport.TheattachedAppraisalReport
hasbeenpreparedtocomplywithmyunderstandingoftherequirementsoftheUniformStandards
ofProfessionalAppraisalPractice.
Thesubjectpropertyislocatedinthe“OldTown”sectionofKeyWest,specificallyonthesoutherly
sideofPalmAvenue,thesoutheasterlysideofEatonStreet,theeasterlysideofWhiteStreet,the
northwesterlyborderoftheCityofKeyWestCemetery,thenorthwesterlysideofAngelaStreetand
thesouthwesterlysideofEisenhowerDrive.Thesubjectpropertyissurroundedmostlyby
residentialuseswithsomecommercialusesnearbyonWhiteStreetandtheGarrisonBightMarina
onPalmAvenueandEisenhowerDrivetotheSoutheast.Thesubjectimprovementsarelocatedon
apolygon,irregular-shaped,cornerparcelfrontingalongthesoutherlysideofPalmAvenue,the
southeasterlysideofEatonStreet,theeasterlysideofStreetandthesouthwesterlysideof
EisenhowerDriveforatotalsitesizeof1,053,434squarefeetor24.1835acres.Thesubjectsite,
however,doesnotinclude2+acresinthemiddleofthesite,whichwillberetainedbythesellerfor
developmentof48affordablehousingunits.Asaresult,thenetsubjectsiteareaisapproximately
22acres,or958,320squarefeet.Asurvey,performedbyF.H.Hildebrandt,IslandSurveying3152
NorthsideDrive,KeyWest,FL33040datedJanuary31,2012andasiteplanperformedbyAllen
E.Perez,P.E.,PerezEngineeringandDevelopment,1010EastKennedyDriveSuite201,KeyWest,
FL33040,datedJuly29,2015,wereutilizedforsitesize,dimensionsandbuildingmeasurements.
Anydeviationsfromthesesizeswouldcouldresultinachangeinvalue.
Mr.JamesK.Scholl,CityManager
CityofKeyWest
October28,2015
PageNo.2
Thesubjectpropertyconsistsof49,2-storywoodframetownhousebuildingscontaining157,2-
bedroomnontransientresidential,units.Thetotalgrossrentablebuildingareaoftheentirecomplex
is200,382squarefeet.Eachunithasaonecarportwithenclosedstorageareameasuring351square
feet.Themulti-familydwellingswereconstructedin1996,accordingtotheMonroeCountyTax
Appraiser’srecords.Onthetablebelow,asummaryofthesubjectbuildings,unitmixandgrossing
buildingareasaredepicted:
PearyCourtatKeyWest
GrossLivingAreaCalculationsandUnitMix
BuildingandNo.ofNo.ofNo.ofBldg.Gross
Building#Bed/BathDescriptionBldgs.StoriesUnitsG.B.A.Rentable
Bldg.TypeA4UnitTownhouse-2/1.51024051,44051,440
Bldg.TypeB3UnitTownhouse-2/1.528284108,024108,024
Bldg.TypeC2UnitTownhouse-2/1.53267,7167,716
Bldg.TypeD4UnitTownhousew/1H.C.-2/1.5,2/1321214,86214,862
Bldg.TypeE3UnitTownhousew/1H.C.-2/1.5,2/1521518,34018,340
Totals:49157200,382200,382
MarketValueisdefinedasthemostprobablepriceincash(oritsequivalency)forwhichthe
appraisedpropertywillsellinacompetitivemarketunderallconditionsrequisitetoafairsale.
Marketvalueassumesanormalorreasonabletimeforexposureontheopenmarket.
Thisreportcontainstheresultsofmyinvestigationandanalysismadeinordertofurnishanestimate
oftheMarketValueoftheFeeSimpleInterestofthepropertydescribedherein.TheFeeSimple
Interestistheunencumberedvalueofthesubjectproperty;basically,marketrentsandtermsare
consideredwithnoregardtoexistingleasesandterms.Sincetherearenolong-termleases
encumberingthesubjectproperty,andasthetenantsarerentingonanannualbasisorless,aLeased
Feevaluationwasnotapplicableinthecaseathand.Forty-eightoftheexisting157unitsaredeed
restrictedasmoderateaffordablehousingunits;however,theserestrictionswillberemovedonce
thenew48affordableunitsareconstructed(notpartofthisassignment).PertheCity’srequest,I
havevaluedthesubjectasanapartmentcomplexwith157marketrateunitsandalsoas157units
leasedasmoderateaffordable(work-force)housing.Thereaderiscautionedthatatitlesearchwas
notmade;thus,nootherencumbrancesareconsideredherein.
Mr.JamesK.Scholl,CityManager
CityofKeyWest
October28,2015
PageNo.3
Basedonanalysisofmarketdata,inspection,andresearch,itismyopinionthatthe“AsIs”Market
ValueoftheFeeSimpleInterestofSubjectPropertycommonlyknownasthePearyCourtAtKey
West,541WhiteStreet,KeyWest,MonroeCounty,Florida,subjecttomoderateaffordablehousing
rentalrestrictionsforall157units,andalsosubjecttodefinitions,assumptionsandlimiting
conditions,asofSeptember18,2015is:
FIFTYTHREEMILLIONDOLLARS
($53,000,000)
Inaddition,basedonanalysisofmarketdata,inspection,andresearch,itismyopinionthatthe“As
Is”MarketValueoftheFeeSimpleInterestofSubjectPropertycommonlyknownasthePeary
CourtAtKeyWest,541WhiteStreet,KeyWest,MonroeCounty,Florida,subjecttomarketrate
rentalsall157units,andalsosubjecttodefinitions,assumptionsandlimitingconditions,asof
September18,2015is:
FIFTYSEVENMILLIONDOLLARS
($57,000,000)
Finally,basedonresearchanalysisofmarketdata,sitevisitandresearch,itismyopinionthatthe
“AsIs”MarketValue(DiscountedSellout/BulkSale)oftheSubjectPropertyknownasPearyCourt
AtKeyWest,541WhiteStreet,subjecttodefinitions,assumptionsandlimitingconditions,asof
September18,2015is:
FIFTYSEVENMILLIONDOLLARS
($57,000,000)
Thevaluationhereindoesnotconsideranyfixturesandequipmentotherthanthetypicalresidential
kitchenapplianceswithintheapartments,whichIhaveestimatedtohaveacontributoryvalueof
$120,000.
Mr.JamesK.Scholl,CityManager
CityofKeyWest
October28,2015
PageNo.4
ASummaryofFactsandConclusionsisprovidedinthefrontofthisreportinPartI.The
AssumptionsandLimitingConditions,aswellastheCertificationofValuemayalsobefoundin
PartI.Ifyouhaveanyquestionsregardingthisappraisalreport,feelfreetocontactme.Thankyou
forgivingmetheopportunitytoprovidethisserviceforyou.
Respectfullysubmitted,
JamesE.Wilson,MRICS,President
State-certifiedgeneralappraiser
RZ2164
AN APPRAISAL REPORT OF
THE PEARY COURT APARTMENTS, A MIXED-INCOME
APARTMENT COMPLEX LOCATED AT
541 WHITE STREET, KEY WEST, FLORIDA 33040
PREPARED FOR
CITY OF KEY WEST
3132 FLAGLER AVENUE
KEY WEST, FLORIDA 33040
ATTN: MR. JIM SCHOLL, CITY MANAGER
LOCATION COORDINATES
LONGITUDE: -81.79319 LATITUDE: 24.56086
DATE OF VALUATION
SEPTEMBER 14, 2015
DATE OF REPORT
OCTOBER 12, 2015
PREPARED BY
MERIDIAN APPRAISAL GROUP, INC.
ROBERT VON, PRESIDENT
STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ 1604
ERICA A. ERNST, ASSOCIATE APPRAISER
STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ 3560
1331 Sundial Point
Winter Springs, Florida 32708
Tel 407.875.6933
Fax 407.875.1061
October 12, 2015
Mr. Jim Scholl, City Manager
City of Key West
3132 Flagler Avenue
Key West, Florida 33040
Re: Appraisal of the 157 unit mixed income apartment complex located at 541 White Street, Key West,
.
Florida 33040
Meridian File No: 15-PNI
Dear Mr. Scholl:
As requested, we have made the necessary investigations and analyses to appraise the Peary Court apartment
complex built in 1996 and 95% occupied. The improvements consist of a 157 unit complex situated on a 24.18
acre site. The property is about 19 years old and appears to be in Average condition. As of the date of our
inspection, all units were reportedly rentable. The property is considered a Class B improvement in the local
area.
Currently, the subject property sets aside 48 units designated as Work Force affordabOHKRXVLQJ7KHVXEMHFW·V
Work Force Housing designation is designed to create moderate rents for the subject property, with each tenant
required to have their income fall within a certain range (please see Addenda for Work Force Housing Rent
and Income Limits). The current Work Force Housing rental rates vary per unit but average $2,325 per month.
The City of Key West Housing Authority has proposed to operate the subject property as a 100% Work Force
Housing project.
The subject property is further described and identified by both legal and narrative descriptions within the text
of the following appraisal report.
The purpose of this appraisal was to estimate the market value of the Leased Fee interest in the subject property,
as if an un-restricted market rate property and as proposed to be restricted as 100% Work Force Housing. Since
the subject property is already at stabilization, we have provided the values of the property as is. We also valued
the subject property as if it were a for-sale condominium project. The date of valuation is September 14, 2015.
The intended use of this appraisal is for internal decision making. The intended user of this report is City of Key
West to the attention of Jim Scholl, City Manager. No other use or users are intended.
Market value, leased fee interest and other appraisal terms are defined within the text of the following appraisal
report.
General Assumptions and Limiting Conditions concerning the valuation of the subject property can be found
following this section of the report. This is an Appraisal Report prepared under Standards Rule 2-2(a) and
performed under Standard Rule 1 of the Uniform Standards of Professional Appraisal Practice (USPAP).
We have formed the opinion that the hypothetical market value of the Leased Fee interest in the subject property
DVDQXQUHVWULFWHGPDUNHWUHQWSURSHUW\LQLW·VDVLV condition, assuming any deferred maintenance is cured,
including $157,000 in personal property, based on market conditions prevailing on September 14, 2015, was:
M.JS
R IM CHOLL
O12,2015
CTOBER
P2
AGE
FIFTY SEVEN MILLION SEVENTY THOUSAND DOLLARS
($57,070,000)*
We have formed the opinion that the hypothetical market value of the Leased Fee interest in the subject
SURSHUW\DVSURSRVHGWREHUHVWULFWHGDV:RUNIRUFH+RXVLQJLQLW·VDVLVFRQGLWLRQDVVXPLQJDQ\GHIHUUHG
maintenance is cured, including $157,000 in personal property, and with market financing, based on market
conditions prevailing on September 14, 2015, was:
FIFTY FOUR MILLION TWO HUNDRED TEN THOUSAND DOLLARS
($54,210,000)*
We have formed the opinion that the hypothetical market value of the Leased Fee interest in the subject
SURSHUW\DVDIRUVDOHFRQGRPLQLXPSURSHUW\LQLW·VDVLVFRQGLWLRQDVVXPLQJDQ\GHIHUUHGPDLQWHQDQFHLV
cured, including $157,000 in personal property, based on market conditions prevailing on September 14, 2015,
was:
FIFTY THREE MILLION TWO HUNDRED TWENTY THOUSAND DOLLARS
($53,220,000) *
The following report was prepared in conformity with the Code of Professional Ethics and Standards of
Professional Practice of the Appraisal Institute. As such, it conforms to the Uniform Standards of Professional
Appraisal Practice (USPAP) that became effective January 1, 2015. This report meets or exceeds the guidelines
of Federal, Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI of FIRREA) and
subsequent updates, as issued by the Office of the Comptroller of Currency.
Based upon the steps and investigations taken to appraise the subject property, we are of the opinion we have
complied with the Competency Provision of USPAP, as required by the FIRREA Act of 1989 and subsequent
updates. This letter of transmittal precedes the appraisal report, further describing the subject property and
containing the reasoning and pertinent data leading to the final value estimates.
Respectfully submitted,
Meridian Appraisal Group, Inc.
Robert Von, President
State-Certified General Real Estate Appraiser RZ 1604
Erica A. Ernst, Associate Appraiser
State-Certified General Real Estate Appraiser RZ 3560
RV:EAE:dmh