Item J4
LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: Apri/17, 2002
Bulk Item: Yes No X
Department: Land Authority
Agenda Item Wording: Approval of Monroe County Housing Authority's proposal to acquire the
Overseas Motel in Marathon as an affordable housing site for elderly residents.
Item Background: The Overseas Motel is located on a 1.4 acre site at MM 49 on the oceanside of
Marathon. According to a 1999 agreement with the Department of Community Affairs, the property is
vested for 35 units consisting of 24 motel units, 10 mobile homes, and one single-family residence.
Last year the Board approved adding this property to the Acquisition List in partnership with the Monroe
County Housing Authority (MCHA), subject to the City of Marathon nominating the site. However, on
December 18, 2001 the Marathon City Council voted against the nomination. In order to address
concerns raised by the City, MCHA now proposes that the site be redeveloped as affordable housing
for elderly residents. Up to 40% of the units would be available to elderly residents of moderate income.
The City approved this modified proposal on March 12, 2002 and nominated the property for purchase
by the Land Authority.
Staff is requesting confirmation of the Board's desire to pursue this acquisition in light of the modified
approach of providing affordable housing specifically for elderly residents. Approval of this item is a
preliminary, non-binding step and further Board action will be required to purchase the property.
Advisory Committee Action: On 3/27/02 the Advisory Committee voted 5/0 to approve MCHA's
modified proposal.
Previous Governing Board Action: On 11/21/01 the Board approved adding the Overseas Motel to
the Acquisition List subject to the City of Marathon nominating the site.
Contract/Agreement Changes: NIA
Staff Recommendation: Approval
Total Cost: $ To be determined
Budgeted: Yes X
No
Cost to Land Authority: $ To be determined
Approved By: Attorney ~
Executive Director Approval:
OMB/PUrc~
\" ~arkJ. Rosch
Risk Management
Documentation: Included: X
To Follow:
Not Required:
Disposition:
Agenda Item LA #4
O~/19/2002 14:00 3852921162
Pt:.GE 02
RESOLUTION NO. 02- 0]-39
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MARATHON, FLORIDA, NOMINATING PROPERTY FOR
ACQUISITION BY THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY FOR
AFFORDABLE ELDERLY HOUSING USES; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS it is the desire of the City Council of the City of Marathon, Florida to
provide additional affordable elderly housing within the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MARATHON, FLORIDA, AS FOllOWS:
Section 1. The above recital Is true and correct and is incorporated herein by
reference.
Section 2. The City Council nominates the Overseas Motel for acquisition by the
Monroe County Land Authority for the purpose of providing affordable elderly housing.
Following acquisition. the City Council requests that the Monroe County Land Authority
convey the property to the Monroe County Housing Authority for redevelopment and
management as affordable elderly housing rental units.
Section 3. This resolution shalt become effective immediately upon its adoption.
PASSED AND ADOPTED this 12th day of
(Seal)
ATTEST:
~~v:~~
City Clerk
(--
Approved for Legal Sufficiency
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March
,2002.
, ,
CERTIFICATION
I CERTIFY nus TO BB
COpy OP THE ORIGIN~lTRoUoE &: CORRECT
PIlB. CUMENT ON
w~ ~.~~~ AND OFFICiAl. SEAL OF
L~ THB couNtY OF m,a. na... -/--h" ,.., .
fLOIUD"- n >>-1D n n> e..
20 ~/I, ~ liS /'1 fh bA Y OF >>7 d.A l'!L-
~j,(~
CITY CLeRK
)
AFFORDABLE HOUSING
PROPOSAL
)
OVERSEAS MOTEL
MARATHON, FLORIDA
SEPTEMBER,2001
PREPARED By
) SPECIAL PROGRAMS OFFICE
MONROE COUNTY HOUSING AUTHORITY
1t1JM..
SPECIAL PROGRAMS OFFICE
c/o Monroe County Housing Authority
1403 12th Street
Key West, Florida 33040
(305) 292-1221 FAX (305) 292-1162
March 4, 2002
City of Marathon
10045-10055 Overseas Highway
Marathon, Florida 33050
Attention: Craig Wrathell, City Manager
RE: Redevelopment of Overseas Motel as Affordable Housing
Dear Craig:
)
As you are aware, several months ago the Marathon City Council declined to pass a
Resolution nominating the Overseas Motel for acquisition by the Monroe County Land
Authority and conveyance to the Monroe County Housing Authority to rehabilitate as
affordable housing. At that time council members requested more specific information,
expressed a desire to complete the visioning process and how the conversion of transient
units may impact the City's plans for redevelopment.
Please find attached a detailed proposal to rehabilitate the existing buildings to create
twenty-four affordable residential units. In a desire to satisfy the needs of the city and
neighbors, we have amended our proposal to develop the property as affordable housing
for elderly residents. In addition, up to 40% of the units would be available to
moderate-income elderly households.
Our architect and staff have had the OPportunity to review the City's visioning plan and we
are eager to try to incorporate these elements into the proposed rehabilitation.
I was excited to learn that the conversion of transient no longer seemed to be of concern
when the Council recently discussed its support for a very similar project proposed for the
Palms Motel.
Please note we continue to seek the input of the council, your staff, and neighbors in
developing a site that is compatible to the needs, vision and redevelopment plans of the
City of Marathon. We would welcome any feedback that would result in a project that is
supported by the city and its residents.
")
/
As previously requested, we would like to ask that this item be placed on the agenda of
March City Council agenda.
"dedicated to the quality of life through housing and
community initiatives"
Should you have any questions, please feel free to call me directly. I hope to have the
opportunity to meet with members of the City Council, your staff and neighbors in an
effort to address any concerns with the project as proposed. Thank you for your continued
efforts to address the issue of affordable housing in the City of Marathon.
~~e () .
Richard C. Ca~t
Programs Administrator
CC: Henry Haskins, Executive Director, MCHA
1. Manuel Castillo, Director of Planning and Development, MCHA
Marathon City Council
Donnie Lang, Marathon Planning
Mark Rosch, Monroe County Land Authority
)
)
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MARATHON, FLORIDA, NOMINATING PROPERTY FOR
ACQUISITION BY THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY FOR
AFFORDABLE HOUSING USES; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS it is the desire of the City Council of the City of Marathon, Florida to provide
additional affordable housing within the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MARATHON, FLORIDA, AS FOLLOWS:
Section 1. The above recital is true and correct and IS incorporated herein by
reference,
Section 2. The City Council nominates the Overseas Motel for acquisition by the
Monroe County Land Authority for the purpose of providing affordable housing.
Following acquisition, the City Council requests that the Monroe County Land Authority
) convey the property to the Monroe County Housing Authority for redevelopment and
management as affordable housing rental units.
Section 3. This resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this
day of
,2002.
(Seal)
ATTEST:
CITY COUNCIL OF THE CITY OF
MARATHON, FLORIDA
City Clerk
, Mayor
Approved for Legal Sufficiency
J City Attorney
PROPOSED RESOLUTION TO BE CONSIDERED BY THE MARATHON CITY
COUNCIL AT THE MARCH 12,2002 MEETING
)
A PROPOSAL BY THE MONROE COUNTY HOUSING
AUTHORITY TO ACQUIRE, REHABILITATE AND
OPERATE THE OVERSEAS MOTEL AS AFFORDABLE
HOUSING DEDICATED TO THE ELDERLY
SITE
The site is a parcel of land and existing improvements located at 3900 Overseas Highway (MM
49 Bayside), Marathon, Florida. The site is 61,664 sq. ft. or 1.41 acres and zoned Mixed Use
(MU). The site is set back 65' from U.S. Route 1 and located within one mile of a public park, a
hospital, schools, convenience stores and other amenities. Abutting the parcel are Annette's
Steak and Lobster House and a mobile home park to the east, a commercial fishing trap yard to
the west and Louisa Street to the north. The Overseas Lounge is immediately to the south and in
front of the subject property along US 1. Public access to the property is through public right of
way off US I between the subject and Overseas Lounge and via Louisa Road. A site map, site
plans and photographs are provided herein.
CURRENT SITE CONDITIONS
In a 1999 Development Agreement Monroe County and the Florida Department of Community
Affairs recognized the property contained a total of thirty-five units as follows:
)
24 transient/motel units
10 mobile home units
ill. single family residence
35 Total Units
Currently the property contains eleven concrete block structures built in 1938, a single concrete
block and wood frame structure built in 1946 and eight mobile home/trailers, plus five small
storage buildings.
The 1938 structures are six single unit buildings and six duplex unit buildings of concrete block
construction located at ground level. The single 1946 structure contains four concrete block
efficiency units on the ground level and a two bedroom, two bath single family wood frame
residence above. The physical conditions of all these buildings are good to above average. No
evidence of spalling or other structural deterioration is evident. The roofs are reinforced
concrete and show no evidence of leaking. These structures have been well maintained and all
mechanical systems (electric and plumbing) have been updated and are appear to be in good
working order. Each unit contains a single wall mounted air conditioner.
Of the eight existing mobile home/trailer units, one 2BR/IBA (784sq. ft.) units is in good
condition. The remaining seven mobile homes/trailers are small, in poor condition and/or
deteriorating.
)
The five separate storage buildings provide approximately 600 sq. feet of storage space.
The grounds as well maintained and the property is fenced. There is a concrete block wall as
you enter the property from US 1.
Affordable Housing Redevelopment Proposal
Overseas Motel, Marathon
February 2002
EXISTING USE
The property has been operated since 1938 as the Overseas Motel. The property has become
functionally obsolete and has been offered for sale for several years. The price is based on the
development rights associated with the property as much, if not more, than the existing
commercial operation. The City of Marathon does not presently have a mechanism in place for
the transfer of development rights to other sites, though such a mechanism is being
contemplated. Though the units are in above average condition, their age, unit size, location and
market conditions preclude a continued commercial motel operation from generating sufficient
revenues to support the debt service associated with its continued operation.
PROPOSED REDEVELOPMENT
ACQUISITION:
The Monroe County Housing Authority would request the Monroe County Land Authority to
acquire the property and convey it to the Monroe County Housing Authority for the purpose of
creating new affordable housing for Marathon residents. The property would be owned and
managed by the Monroe County Housing Authority as affordable rental units subject to an
affordability deed restriction of the Monroe County Land Authority. The deed restriction would
maintain the property's affordability in perpetuity.
) OCCUPANCY:
Occupancy would be subject to the Affordability Policy of the Monroe County Housing
Authority, which provides housing dedicated to very low, low and moderate-income tenants. Up
to 40% of the units (12) would be available for moderate-income households.
REHABILITATION:
· Rehabilitation of the existing 14 buildings containing 24 transient units into 15 residential
apartments. Unit mix of9 one bedroom units and 6 efficiencies units.
· Rehabilitation of the existing 2 bedrooml2 bath residence.
· Rehabilitation of the existing 2 bedroomll bath mobile home
· Removal of the six accessory storage buildings
· Site improvements:
Landscaping, lighting, security, access
· Maintain existing historic character of buildings while incorporating elements of Marathon's
vIsIOnmg process.
Affordable Housing Redevelopment Proposal
Overseas Motel, Marathon
February 2002
AFFORDABILITY
)
INCOME MAXIMUMS:
I Person
2 Persons
3 Persons
4 Persons
Very Low
$19,300
$22,050
$24,800
$27,550
Low
$30,850
$35,250
$39,650
$44, 100
RENTAL MAXIMUMS:
Efficiency
One Bedroom
Two Bedroom
Very Low
$482
$771
$1,158
Low
$516
$826
$1,240
Moderate
$46,320
$52,920
$59,520
$66,120
Moderate
$620
$991
$1,488
The U.S. Department of Housing and Urban Development and the Florida Housing Finance
Corporation establish income limits annually for Monroe County. Rental maximums are the
maximum amount a unit may be rented for. Actual rental amounts are often less than the
maximum based on operation and maintenance costs.
FUTURE DEVELOPMENT
The site is recognized to have development rights of thirty-five units (see above). We have
proposed to convert the existing structures into seventeen units. The Housing Authority would at
some point in the future build additional new units on the location of the existing mobile home
units. It is estimated that the property may suitable accommodate up to an additional 6-8 units.
Future plans for new units are dependent on the availability of funding. Any new units would be
designed to maintain the historic character of the site.
)
The proposed 17 affordable units and up to 8 future affordable units will result in the availability
of 10 development rights for affordable housing. At this time the mechanism to transfer any
development rights of site does not exist.
MANAGEMENT
Monroe County Housing Authority currently maintains a staff of lOin the City of Marathon
performing management, maintenance and security functions at existing properties.
NOTES
.)
Affordable Housing Redevelopment Proposal
Overseas Motel, Marathon
February 2002
OVERSEAS !\'IOTEL
Nlarathon. Florida
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Typical Existing Duplex Units
OVERSEAS MOTEL
Marathon, Florida
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Typical Existing Single Units
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OVERSEAS MOTEL
Marathon, Florida
F our existing ground level efficiency units and a two
bedroom/two bath single family residence.
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