Item L3
LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: August 20, 2003
Bulk Item: Yes No X
Department: Land Authority
Agenda Item Wording: Approval to add two trailer parks on 24th and 25th Streets in Marathon to the
Acquisition List as an affordable housing site in partnership with the Middle Keys Community Land
Trust.
Item Background: The City of Marathon has nominated the subject property for purchase by the Land
Authority and subsequent conveyance to the Middle Keys Community Land Trust (MKCL T). The site
consists of two trailer parks in Sombrero subdivision, a 29-unit park owned by Cases Sisters Creek, Inc.
and the adjoining 9-unit park owned by R. A. Case Trust. MKCL T proposes to re-develop the site as 38
units of moderate income (120% of median income) townhouse-style housing, whereby income-
qualified residents would purchase the structures from the project developer and lease the land from
MKCL T. MKCL T plans on using Key Investment Group (KIG), LLC as the project developer, who, using
private financing, would build 2 and 3 bedroom units and sell them for $145,000 to $185,000 each. KIG
currently has an option to purchase the 29-unit park for $1,800,000 and the 9-unit park for $575,000,
bringing the total price to $2,375,000 or 85% of the proposed FY 04 budget for general acquisitions in
the Florida Keys Area of Critical State Concern.
The addition of property to the Acquisition List is a preliminary, non-binding step indicating the Board's
desire to pursue acquisition. Further Board action is required before entering into a purchase contract.
Advisory Committee Action: On July 24, 2003 the Advisory Committee voted 3/0 to approve adding
the project to the Acquisition List.
Previous Governing Board Action: On April 16, 2003 the Board approved conveying four lots in
Reimanns subdivision to the Middle Keys Community Land Trust.
Contract/Agreement Changes: N/A
Staff Recommendation: Approval, with the understanding that budgetary constraints will likely limit
the Land Authority's participation to significantly less than 100% of the land cost.
Total Cost: To be determined
Budgeted : Yes
No
Cost to Land Authority: To be determined
Source of Funds:
Approved By: Attorney ~
Executive Director Approval:
County Land Steward .
. ~-
^"l ~ark J. Rosch
To Follow:
Not Required:
Documentation: Included: X
Disposition:
Agenda Item LA #3
Rosasco, Reasin & Co.
Certified Public Accountants
Peter Rosasco, CPA
Richard C. Reasin, CPA
Marlene C. Morato, CPA
July 17,2003
Mr. Mark Rosch
Monroe County Land Authority
1200 Truman Avenue, Suite 207
Key West, FL 33040
Re: City of Marathon Florida Resolution 2003-095 / Middle Keys Community
Land Trust (MKCL T) Acquisition
Dear Mark:
It was a pleasure speaking with you yesterday concerning the captioned matter. I am enclosing the
proposed site plan, floor plans, and elevations for the project.
The following shall serve to outline the proposed transaction.
As you are aware, there has been considerable interest recently in protecting affordable housing stock
which is presently contained in mobile home parks in Monroe County. I believe that the following
proposal demonstrates an excellent opportunity and perhaps a model to accomplish this goal. The
acquisition of the two mobile home parks located between 24th and 25th Streets in Marathon will result in
the permanent preservation of 38 units of modem affordable housing. The transaction would contemplate
the following:
· The Monroe County Land Authority would provide funds to acquire the property and deed it to
the MKCLT.
· MKCL T would be responsible for maintaining the residences under its affordable housing
guidelines in perpetuity by approving all subsequent re-sales as well as insuring that the property
is maintained properly.
MKCL T will enter into a development agreement with Key Investment Group LLC (KIG) which will
finance, construct, and sell the units. It is contemplated that the homes will sell for between $165,000 and
$185,000. Purchasers of the homes will be required to meet the income and other requirements of
MKCLT.
P. O. Box 42-/075, 25000 Overseas Highway, Summerland Key, FL 33042-/075
Phone (305) 745-4077 Fax (305) 745-4078
A member 0/ Florida Institute o/Certified Public Accountants
Mr. Mark Rosch
July 17,2003
Page 2
KIG presently has the properties under option with a combined purchase price of$2,375,000. There are
actually two transactions involved. First is the acquisition of approximately 9 units located at 192-330
24th Street. The seller on this transaction is the R. A. Case Trust with an acquisition price of $575,000.
The second parcel consists of 29 mobile home units that are being acquired from Cases Sisters Creek, Inc.
for $1,800,000. These 29 units are presently vacant which eliminates any issues of displacement. The
24th Street site does have existing tenants, however, we plan to handle the displacement issue on this site
via normal attrition,
As you may recall, the 29 unit parcel was evaluated by the county's housing consultant and was
determined to be an excellent site for this type of development. MKCL T and KIG decided that adding the
24 th Street property provided for a much better site plan as well as the opportunity to preserve an
additional 9 or 10 affordable housing units, There are two proposed site plans enclosed. The first
represents the 29 unit site plan and the second represents a 38 unit site plan encompassing both sites.
Both KIG and MCKL T believe the 38 unit site plan works much better.
We are requesting that this matter come before the Land Authority Advisory Board at its July 1 th
meeting for discussion and preliminary approval. There is presently a full price, all cash, backup offer on
the Sisters Creek site and a very short fuse on both contracts. Specifically, the 24th Street site must be
closed by September 15, 2003 and the option on the Sisters Creek site must be exercised on or before
October 17,2003. I realize that the Land Authority may not be in a position to close on the properties this
quickly, however, it will be crucial to know how things look prior to these dates.
Please let me know if you require additional information prior to next week's meeting or if you would
like to get together.
Thank you for your assistance with this matter.
Sincer~
~ /?n~<-i-
Peter Rosasco
Managing Member Keys Investment Group LLC
cc: Debbie Love
Jeff Pinkus
Frank Greenman
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RECEIVED y.}
Sponsored by: Pinkus
CITY OF MARATHON, FLORIDA
RESOLUTION 2003-095
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MARATHON, FLORIDA, NOMINATING PROPERTY FOR
ACQUISITION BY THE MONROE COUNTY LAND AUTHORITY
FOR AFFORDABLE HOUSING USES
WHEREAS, the City Council of the City of Marathon, Florida wishes to provide
additional affordable housing within the City; and
WHEREAS, the Monroe County Land Authority will diligently pursue the
purchase of appropriate properties nominated by the City of Marathon for acquisition for
affordable housing development; and
WHEREAS, the Middle Keys Community Land Trust is a non-profit
organization dedicated to the creation and preservation of affordable housing
opportunities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF MARATHON, FLORIDA, that:
Section 1. The City of Marathon nominates seven properties in Marathon and
further described in "Exhibit A" attached hereto, 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 Middle Keys Community Land Trust, Inc. for development and management as
affordable homeownership units.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Marathon,
Florida, this 8th day of July, 2003.
THE CITY OF MARATHON, FLORIDA
'~/~~;;'~~=~"CO:-=
-
Randy Mearns, Mayor
AYES:
NOES:
Bartus, Pinkus, Repetto, Worthington, Mearns
None
ABSENT: None
ABSTAIN: None
(City Seal)
APPROVED AS TO FORM AND LEGALITY FOR THE USE
AND RELIANCE OF THE CITY OF MARATHON, FLORIDA ONLY:
"EXHIBIT A"
Legal Description
Property 1:
Real Estate Number: 00338720-000000
EDMONDS ACREAGE TRACTS PB2-1 00 KEY V ACA PT TRACT 8 & BAY
BOTTOM SOUTH OF & ADJ TO TR 8 & PT OF DON- ALLEN RD RES NO 15-1973
II DEED 20613 G58-440/441 RE 10379 COMBINED FOR ASSMT PURPOSES 5-25-
88JMH ORI552-1166/67(CW) ORI581-1191(CW)
Properties 2-7:
Real Estate Numbers: 00321180-000000,00321130-000000,00321080-000000,
00321090-000000,00321100-000000,00321110-000000
LOTS 4-9, BLOCK 2, SOMBRERO SUBDIVISION NO.2 ACCORDING TO THE
PLA T THEREOF AS RECORDED IN PLAT BOOK 2, PAGE 32. ALSO LOTS 3,4
AND 5, BLOCK I, SOMBRERO SUBDIVISION NO.3, ACCORDING TO THE PLAT
THEREOF AS RECORDED IN PLAT BOOK 2, PAGE 152, OF THE PUBLIC
RECORDS OF MONROE COUNTY, FLORIDA
Street Address
Property I: 64th Street
Property 2-7: 24th and 25th Streets
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Property
Sombrero Subdivisions