Item F5LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date:Department:
September 16, 2015Land Authority
Bulk Item:Staff Contact / Phone #:
Yes No XMark Rosch / 295-5180
__________________________________________________________________________________
Agenda Item Wording:
Approval of a resolution authorizing subordination of the mortgage loan
encumbering a portion of Poinciana Plaza in Key West for an affordable assisted and independent
living facility.
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Item Background:
In 2004 the Key West Housing Authority (KWHA)purchased Poinciana Plaza in
Key West from the US Navy with a $16 millionSection 108 loan and a $2,210,000 mortgage loan from
the Land Authority.ALand Use Restriction Agreement limits use of the property to affordable housing
and runs in favor of theLand Authority and the Department of Economic Opportunity.
KWHA proposes to build a 108-unit Assisted and Independent Living Facility on anundeveloped 2.1
acre portion of Poinciana Plaza.KWHA proposes to finance the cost of construction with a mortgage
loan from Centennial Bank in an amount not to exceed $21,500,000. The lender requiresthe
construction loan to be in first mortgage position and therefore KWHA is requesting the Land Authority
to subordinate its $2,210,000 mortgage.Of the 108 proposed units, 60 will be supported independent
living units, 48 will be assisted living units, and all will be limited to residents whose household income
does not exceed 120% of area median income. The property’s affordability restrictionsare not being
subordinated.
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Advisory Committee Action:
On August 26, 2015the Committee voted 3/0to approve the resolution
and to authorize the Land Authority Attorney to incorporate language to allow future modifications of the
construction mortgage so long as the debt does not exceed $21,500,000.
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Previous Governing Board Action:
On 6/18/03 the Board approved issuing the $2,210,000 mortgage
loan to assist KWHA in purchasing Poinciana Plaza. On 4/16/14 the Board approved subordinating the
$2,210,000 mortgage loan as to the developed portions of Poinciana Plaza to assist KWHA in
refinancing the $16 M Section 108 loan with a $12 M mortgage loan from First State Bank.
__________________________________________________________________________________
Contract/Agreement Changes:
N/A
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Staff Recommendation:
Approval
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Total Cost:Indirect Cost:Budgeted:
$ $______ Yes No .
Cost to Land Authority:Source of Funds:
$ .
Revenue Producing:Amount per Month:Year:
Yes No X ________ ________
Approved By:
Attorney X County Land Steward .
Documentation:
Included: X Not Required: .
Disposition:
Agenda Item ____
RESOLUTION NO. ________
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLANLAND AUTHORITY AUTHORIZING
SUBORDINATION OF THE MORTGAGE LOAN ENCUMBERING
A PORTION OF POINCIANA PLAZA IN KEY WESTFOR AN
AFFORDABLE ASSISTED AND INDEPENDENT LIVING
FACILITY.
______________________________________________
WHEREAS, in 2004 the Land Authority issued a 30-year, zero interest mortgage loan (OR
1965-1039) in the amount of $2,210,000 to the Housing Authority of the City of Key West,
Florida (hereinafter “Key West Housing Authority”)to partially fund the purchase of a 21.6 acre
portion of the affordable housing site known as the Poinciana Plaza on Duck Avenue in Key
West; and
WHEREAS, Key West Housing Authority proposes to construct a 108 unit Assisted and
IndependentLiving Facility (hereinafter “AILF”) on the 2.1 acre portion of Poinciana Plaza
described in Exhibit A(hereinafter “AILF site”);
WHEREAS, in accordance with the Land Use Restriction Agreement (OR 1965-976)
encumbering the AILF site, the facility will belimited to those residents whose household
income does not exceed 120% of area median income;
WHEREAS, the $16,000,000 Section 108 loan issued by the U.S. Department of Housing and
Urban Development and guaranteed by the Florida Department of Economic Opportunity
(formerly the Florida Department of Community Affairs) that formerly encumbered the AILF site
has been satisfied (OR 2683-354);and consequently the Land Authority’s mortgage loan is
currently in first lien positionon the AILF site;however, First State Bank of the Florida Keys
currently holds a mortgage on the Property with an original principal balance of $12,000,000;
and,
WHEREAS, on the AILF site the Key West Housing Authority requests the Land Authority to
subordinate its mortgage loan to afirst mortgage in an amount not to exceed $21,500,000to
provide financing for the development of the AILF, as such mortgage may be modified in the
future so long as the amount of the mortgage does not exceed $21,500,000; and
WHEREAS, the First State Bank of the Florida Keysmortgage will be released from the AILF
site at the time of the above-referenced closing; therefore, the Land Authority’s mortgage loan
will be insecond lien position.
WHEREAS, the Land Authority Advisory Committee considered this Resolution at a meeting
held on August 26, 2015andvoted 3/0to recommendapproval; NOW, THEREFORE,
BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND
AUTHORITY:
TheChairman of the Land Authority Governing Boardis hereby authorized to execute the
necessary documents tosubordinate the Land Authority’s $2,210,000mortgage loan recorded
in Official Records Book 1965at Page 1039to a first mortgage in anamount not to exceed
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$21,500,000,as such mortgage may be modified in the future so long as the amount of the
mortgage does not exceed $21,500,000as to the AILF site described in Exhibit A.
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a
regular meeting on this ______day of ________________,2015.
Vice Chairman Heather Carruthers_____
Mayor Danny Kolhage_____
Commissioner Sylvia Murphy_____
Commissioner George Neugent_____
Chairman David Rice_____
(Seal)
ATTEST:MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
________________________________________________
Mark J. RoschDavid P. Rice
Executive DirectorChairman
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EXHIBIT A
Note: Legal description taken from Island Surveying Inc. drawing No. 15-383 revised 7/22/15.
Drawing shown on following page.