Item I2
LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: October 20, 2004
Department: Land Authority
Agenda Item Wording: Approval to add the Seacrest Apartments located at 204 9151 Street Ocean in
Marathon to the Acquisition List
Bulk Item: Yes No X
Item Background: The subject property is a 14-unit apartment complex consisting of 9 one-bedroom
and 5 studio apartments on a half-acre of land. The apartments are a concrete block design built in
1967. The property is zoned Urban Residential Mobile Home and Suburban Commercial.
The Middle Keys Community Land Trust currently has a contract to purchase the property for
$1,460,000. MKCL T proposes that the Land Authority purchase the site and convey the property to
MKCL T for use as 13-units of affordable rental housing, with the remaining unit serving as a MKCL T
office. Mayor Jeff Pinkus has indicated a nominating resolution from the City of Marathon will be
forthcoming.
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 acquiring the property.
Advisory Committee Action: On September 30, 2004 the Committee voted 3/0 to approve this item.
Previous Governing Board Action: On September 21, 2004 the Board addressed a non-compliance
issue with MKCL T property on 73rd Street by authorizing the release of affordable housing deed
restrictions upon the repayment of the Land Authority's acquisition costs.
Contract/Agreement Changes: N/A
Staff Recommendation: Approval.
Total Cost: To be determined
Budgeted: Yes
No
Cost to Land Authority: To be determined
Source of Funds:
Approved By: Attorney ~ County Land Steward
Executive Director Approval:
~., ,fL-
. [Mark J. Rosch
Documentation: Included: X
To Follow:
Not Required:
Disposition:
Agenda Item LA #2
CONFIDENTIAL
This proposal has been prepared exclusively for consider~lion by the Mid?le Keys Communi~ Land Trust, Inc. Information contained in this
proposal is confidential and for use only by the Board of Directors of the MIddle Keys Community Land Trust, Inc
MIDDLE KEYS COMMUNITY LAND TRUST
RENTAL ACQUISITION PROJECT
NARRATIVE
Acquisition Proposal
It is proposed the Middle Keys Community Land Trust, Inc. (MKCL n purchase, in partnership
with the Monroe County Land Authority (MCLA), an existing fourteen (14) unit apartment
complex in Marathon. The property would be owned and op~rated by MKCL T as affordable
rental housing. The property is currently listed on MLS and is offered at $1,500,000. The listing
agent is Karen Cooper of Exit Realty, Marathon.
Property Address
2600 91 st Street (Ocean), Marathon, Florida (photographs attached)
Property Description
The subject property located at 2600 91 st Street (Ocean), Marathon and located across from the
Marathon Airport Terminal between All Keys Glass and Marathon Dry Cleaning. The current
zoning is URM, with one structure zoned SC. The zoning is in conformance to its present use.
The property contains five structures. Three buildings which are zoned URM and contain
thirteen (13) existing rental units. These include, nine (9) one-bedroom apartments and four (4)
efficiency apartments. A separate structure with SC zoning contains one (1) studio apartment.
The buildings are all concrete block construction and was initially constructed in 1967. In
addition, the property contains an accessory structure of approximately 220 square feet. This
building is wood frame and is presently used as a workshop/storage. .
Initial observation indicated the buildings and property are well-maintained and no immediate
deferred maintenance evident. Each unit is in good interior condition with tile floors, updated
kitchens and baths and fresWy painted. The average unit size is 288 square feet. Each unit is
individually metered for electric service. Two coin operated washer/dryers are located on site
for tenant use. The property is served by three septic systems that the realtor indicates have
recently been inspected.
Current rents range from $575-$675. The current owner is anticipating 2005 rents of $675-$775.
This proposal provides for rental to low-income families and rents shall increase no more that
that amount published annually by the u.s. Department of Housing and Urban Development for
low-income households and bedroom size. The current rent structure, and that proposed under
MKCL T ownership are as follows:
Page I 01'2
CONFIDENTIAL
This proposal has been prepared exclusively for consider~tion by the Mid~le Keys Communi~ Land Trust, Inc. Infonnation contained in this
proposal is confidential and for use only by the Board of Directors of the Middle Keys Commumty Land Trust, Inc.
Current Rent Structure:
One Bedroom $675.00
Efficiency $575.00
Studio Owner Occupied
Proposed Rent Structure:
One Bedroom $633.00
Efficiency $588.00
Studio MKCL T Office
All units are currently occupied, The studio with SC zoning is currentlyo~upied by the owner
and it is contemplated that this unit could serve as office space for MKCL T operations. An
occupational analysis of current tenants shows it is 100% occupied by local workers, including
two commercial fisherman, several retail sales and maintenance people, and clerical support
workers.
Financing
It is proposed that MKCL T immediately negotiate a contract on the property and authorize some
amount of MKCL T funds to pledge as a deposit to be held in escrow by a third party entity. The
contract would be assignable and contingent upon participation of the Monroe County Land
Authority. It is proposed to initially request the MCLA to finance up to $1,000,000 of the
purchase price and for the MKCL T to obtain conventional bank financing for the balance. The
participation of the MKCL T in obtaining bank financing for a portion of the project serves to
demonstrate to our partners, our commitment to the project, reduces the per unit public subsidy
to a obtainable amount and provide MKCL T the incentive to properly mange the property. The
risk is mitigated by the fact the project should generate more than sufficient incom,e to offset
operating expenses and debt service. It is anticipated that as proposed, the property could
generate approximately $50,000 in excess cash during the first year of operations. See attached
financial analysis.
Timeline
MKCL T should negotiate and execute a contract as quickly as possible and begin due diligence.
Share our proposal/contract with the Monroe County Land Authority staff, governing body and
the City of Marathon staff. Next, request the City of Marathon endorse the project by resolution
at the October 12th City Council meeting. The project could then be considered by the Monroe
County Land Authority Advisory Board on October 28th and the Governing Board (BOCC) on
November 17th. It is anticipated that the contract would be assigned to MCLA and could be
eligible to close prior to year-end. To facilitate this timeline, it is recommended that MKCL T
authorize paying the cost of an appraisal to be conducted for MCLA by an appraiser selected by
the MCLA.
Page 2 of2
MIDDLE KEYS COMMUNITY LAND TRUST
PROJECT: 911t STREET, OCEAN, MARATHON, FLORIDA
DUE DILIGENCE
Zoning
Permit History
Wastewater System
Property Inspection
Rehabilitation Scope of Work
Financial Performance Analysis
Insurance Coverage/Costs
CITY OF MARATHON
CITY OF MARATHON
INSPECTION
INSPECTION
INSPECTION
MKCLTTEAM
MKCLTTEAM
CONTRACT PROVISIONS
Assignable (MCLA)
Deposit
Deadlines
Contingent upon MCLA participation
TIMELINE (Deadlines)
Contract
Due Diligence
Marathon City Council - Nominate for Acquisition
MCLA Advisory Board
MCLA Governing Board (BOCC)
Assignment of Contract
Closing
ASAP
OCTOBER 7th
OCTOBER 12th
OCTOBER 28th
NOVEMBER 17th
NOVEMBER 18th
DECEMBER
NOTES:
. To avoid delay in MCLA appraisal completed AFTER contract assignment, MKCL T agrees to
pay for the cost of appraisal to be conducted for MCLA by appraiser selected by MCLA.
. Upon acquisition, MKCL T will conduct income certifications at time of existing lease
expiration. Existing eligible tenants will be offered first opportunity to renew their lease.
z
o
E
(f)
~
a
()
<
....J
<
I-
Z
LLJ
a:
01 co O;-co , co co 0 r::. ...,. co co co , , ~ r::. 01 co 0;-,... ,... men
....- 01 co u)N N C") u) .... C") co C") co N COItl Itl ,...,...
<1l ,- co N C")CO C") co <C!. co co .... .... en ...
Q) !5 <15 ~csi W:SU; .0 ":pf
::.......
~ ~
00 00000000000000 000 000
"<t
o
o
~
"-
~
0)
01 0 ii)...,. , ~gfflfil~g~g , . OlN.... ~ ... C") ~~ ...,. ...,.
~ u) u) co...,. ....U)U) u) 01 01 ,...
N 0 co co 00l....,...C")0lC")0l CO,... N N M MCO <0 ~
.... ,..: <15 a:i ~ ai";"; N ,...- ...,.- <15 "$'4 eO a:i ,.... 0 ...,.
<1l co ~ <0 .... ...,. ... ....NOl
~ .... .... ....~ ... ....
co...,. ~ Itl . ~~O~I:::~f6~ , , ...COol l20;- <0 com,... ,...
N,... ~ ,...N...,. M ....01.... N
:! co co M LOOl~ItlMOlNOl OlLO 0 M;; MCO <0 ....
.... g.o a:i eO a:i ri"; N <15"; ..; ffi~ ~ ..;,..: uS <<i
<1l ~Itl .... ...,. ... .... NCO
~ .... ... ... ~... ....
*MF:" , 01 CO ....001 co LOCO . , co - ~8l <0
<0 f60'" ....Itl u)
~ 0.... N com I:::....LO 01 LOOl ....Itl N U)"" ,... CO
""0 M ...CO C")M CO .... CO ....M 01. M 01. M M<O <0 01
.... ~.oa:i N' a:i ri"; N <15"; ~ N .... 0 0"': N' M
<1l u) ~Itl .... U)...,.... ....NCO
~ .... ... .... ~... ....
C') ,...~CO . Olltl Nu)N LO NU) , , ~:g;:li CO ;:Ii Itl l28l l2 ,...
~ 01 C')........ olu) 010...,. LO U)U) LO <0 ~
co U),... Itl ,...CO LO....C") CO OCO M.... 01 01 Itl U)CO co
a:i LO- ,..: uS ,..: ri"; N .0"; 01- <15 ai uS <15"': eO M
.... ...,. ~ ...,. .... M ""'C") 0 ON ,...
~ .... .... ....~ .... ....
...,.co F:" N . CO...,. ....olCO ...,. LO...,. . , gOl ~ - .... 01 N ...,.
LO .... ....
,...,... .... M N.... ~g~ a; LO.... U) ~ com co r::.
- enM ...,. en ...,.co qco <og 0 eno coco ....
- N.o ,..: 0 ,..: riri .... ~ri a:i ~~ N' N"': ~ M
.... ...,. ~ ...,. .... C") 0 ON
~ .... ... ....~ ... ....
~~~ en . ...,.<o:gMOCO~CO . . ~~ ~ ~~ a ~8l N co
~ ""'0 t\!. ..... ~ ~1:::t\!.~.MI::: .1::: N C")CO <0. :g
.... {;;LOC ~ ,... C")C") ... riri <15 ~~ g ai"': ... M
<1l .... M enN ,...
~ .... ... ....~
,... ~~ N . ~.~Qo~~~~.~ . , Sico C") ~~ Ie ~8l ~ ~
~ ~ N~ ....
Q) U) co co <0 ...
.... N' ~e ~ <0 M M .... riri ~ g~ .n- .0"': co. M
<1l C") .... CJl OlN co
~ .... ... ....-
M en - N . ~;;:2I:::a; ...,. en;; , "$1::: 0 N 0' N NOl N ....
0 0; 0 N 0 180 ,... ,... N,... Itl u)ol Itl ~
<0 .... co ...,. ...,.,...enC")N ,... COM co ...,.co Itl U)CO co
.... ,..: ~ ~ ~ <15 Nri .... N'ri NO .oN N' N"': 'i M
<1l N .... C") NC') en OlN
~ .... .... ....~
LOCO~ . ~~~ ~ ~~ , . ....co ~ - {;; ~m ,... Itl
~ ...0 ....Itl
C\il::: ....1"- 8.... CZ~ la ~
to... ...CO CONN CO ot\!. M
.... ~..;~ 0 uS NO ri .... NC") c;; g~ ar ar,..: ... M
~ C'\oI ... CO CON CO
.... .... ....~
z
o
I-
CJ)
::l
o
U
<
..J
~
W
a:
*,*,*,*,.0
~1t)(')O
01
c:
:::>
c: c: e!
~O-
@:::>
ClI ~ e
..: E l5
&GlC:
~iE
of .....:
c: 01 \l?
o .s t=-
.ca.B
~ B .
Gl II) -
~ -g .1:
8. ~ _
X II) 01
: -g .~
.Sol 8 al
5Ciu
....
Gl
II)
.. III al 5J E
~~ ~!~ ~
.iiijj i~
!UiU uiH
u
z
<
z
ii:
8
ci
It)
C'l
~
....
~ re~
~ 0)
a: lii
0
~
< ~~~
Q
S ~~m -j
~ Su
~ ~:E
::l ~J
0 c:-
u 91i) ::):5
w 5l::E8 Q) ~
0 a..Q.
a: ~~:5
z
0 ~~O
::E a..::E::E
~
o
o
~
in~ ~
iH3
in!
jn~
ln~
Jn~
in!
iH!
in!
888
~ ~g~
Q
~ tI'HI. ....
~
a:
::l
o
UJ
~ t/) c:
~s:5~
~o5
::E::Em
8
ci
~-
~
....
8 . ,
~
~
............
~~
5J8:lll
~I~ ii
~croa:
_I
RESIDENTIAL INCOME
PROPERTY
;~\:
~.
(
~td{~.~,.:.:.,~
~'.'. . .,__. 4"
,,.,.,.. -- .. .
. ~ ~
\....
~~ .
... , 1'-1"'...
v''!.'''#' .
. .-
'<t'#'
'~r
,~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
14 UNIT APARTMENT COMPLEX
GREAT RENTAL HISTORY
RECENTLY UPDATED
_Sll@
EXIT REALTY FLORIDA KEYS
Gulfside Village - Suite 17
5800 Overseas 111ghway
Marathon, FlollCld 330~)O
KAREN COOPER
Office (305) 743-9292
Res. (305) 743-6710
Cell (305) 304-2209
www.exitfloridakeys.com
SEACREST APARTMENTS
MARKETING SHEET
. 14 Air Conditioned Rental Units
9 1 Bedroom 1 Bath Apartments
5 Studio Apartments
. All Units Include AlC, Ceiling Fans, Refrigerator and Oven/Stoves
. All Units are Tiled Throughout (Most are Ceramic)
. Parking Lot Includes 19 Spaces
. Common Area Laundry Room
2 Coin Operated Washers
2 Coin Operated Dryers
. Common Area Brick Barbeque & Picnic Tables
. 14 Electric Meters
. Maintenance Workshop/Shed
Includes Replacement tiles for all units
Paint and some tools
I'
, ,
l
. Easy Access Location
. .50-Plus Acres with +/- 200 Feet of Street Frontage
. Open Areas for Recreation and Additional Amenities
. Water Tight Automatic Lock Doors with Schlage Locks
_ ...."........_....~__"...,__............_.-...w_......... -.._.....__, ...------.. .--- -~ ~---..-..
i
[',
SEACRESTAPARTMENTS
Profit & Loss
Projected 2005 With Rent Increase
Income
SINGLE BEDROOM 1 BATH RENTAL (9 UNITS@ 775.00)
LARGE EFFICIENCY ( 4 UNITS @ 725.00)
STUDIO APARTMENT (600.00)
LAUNDRY FACILITY INCOME (250.00 PER MONTH)
T otallncome
83,700.00
34,800.00
7,200.00
3,000.00
128,700.00
Expense
ADVERTISING ( Keynoter as needed) ESTIMATED
INSURANCE
LAUNDRY LICENSE
STATE LICENSE
CITY/COUNTY LICENSE
MONTHLY PEST CONTROL
REAL ESTATE TAX (includes Annual Trash Pick Up-$3,500.00)
MGS MAINTENANCE ($ 27 .18 MONTHLY)
UTILITIES
FKEC (Street Lights & Laundry Room)
FKAA (Average $300.00 monthly)
Total Expense
142.50
9,000.00
6.00
280.00
150.00
1,068.00
12,500.00
326.16
960.00
3,600.00
28,032.66
Net Income
100,667.34
Infonnalion, while not warranted, has been secumd from sources deemed to be reliable,
l '
!
I
l
I';
l.
[,
SEACRESTAPARTMENTS
Profit & Loss
Estimated 2004
Income
SINGLE BEDROOM 1 BATH RENTAL (9 UNITS@675.00)
LARGE EFFICIENCY ( 4 UNITS) (1 Unit Owner Occupied)
STUDIO APARTMENT (Owner Occupied)
LAUNDRY FACILITY INCOME (250.00 PER MONTH)
Total Income
72,900.00
28,800.00
00.00
3.000.00
111,300.00
Expense
ADVERTISING ( Keynoter as needed) ESTIMATED
INSURANCE
LAUNDRY LICENSE
STATE LICENSE
CITY/COUNTY LICENSE
MONTHLY PEST CONTROL
REAL ESTATE TAX (includes Annual Trash Pick Up-$3,500.00)
MGS MAINTENANCE ($ 27.18 MONTHLY)
UTILITIES
FKEC (Street lights & Laundry Room)
FKAA (Average $300.00 monthly)
Total Expense
142.50
9,000.00
6.00
280.00
150.00
1,068.00
12,500.00
326.16
960.00
3,600.00
26,832.66
Net Income
84,467.34
InfolTfl8lion. while not wafT8nted. has been secumd from sources deemed to be mliable.
Note: No rental income booked for the 2 owner/manager units.
[,
t'"
I
I
I
\ &~i J
I .. I
~ I III ill
0 L> IiI Illi I
~ <{
0 w
y" lD
~Jj il
&1 ..I!.~ i ..(~ I
I&.
r. ~i J
~
~
"l
~ ...
..
~ 0::
.., g >-
~ o::u Z
:J f.. 0 :r
.... .J..Jo
\ . oOe(
['- 1$\. "Uw
? >-CD
. 1&1
>< ~
WE-<
E-tcL
[ a:w
~o..
HO
XP: ~
00..
cL >-
0.. (-i W
o..u ~ ~ ~
.:cw V
t") ') 0
Wctl
:r:~ \10-
8Ul u-~ ~
(l)W o~~
:.G:I:
cLE-t
.:c
::E:t... ~ ..)
0
~ A
OZ ft. ~
cLO ~
cLH
.:cE-t
.:c
wu
:cO
8....:l
i
\ 0::
W
t-
\>- 4/)
l ~: lUJ Vi
;~
J
~.. t-
.-' ' 0
0
m
I!' f>J
~ ...
.J g
i ~ -
Z- CD ..
W '"' G>
l- >
:;J d
l- :1 ~
..c:
t; x C>
Vi x:
~
.....
'" 0
. -
0 t
Infonnation, while not warranted, has been S8CUI8d from sources doomed to be reliable.
:!!!U')
:=CD
<(
0>-
~<(
01:0
-I
Ii..
:!:U')
:!:~
Oz
~<(
Zw
:So
~O
:eo
:e~
AD
~
<€K
A KEY
p..\~~"\
~"\#
v
/'
'/
,~vc
~o,~' V I!! ~
1 ... ,rr- 1lQ)
.\at-"''' ~D ~~ ~
O~... T ......-:~I.. · n
~..e." _----1'/" .~ I'W . ~
'\ I ~~, ~L'
o. ,,0. ~~~~~ --- I! U ,
-",~~I~~~p ~ ~V ~~ ~~~
~~(~~ 1 ~ . ~ _~ ~ V ~ l~
~ .~.,'~,. ~ '-;- '- ~ V' .~~~
.4 U-:-... ~ ~ ~ yV ~ L
,....,....- ~ ,. ~~ i~'" · I _~~ ~~ ~ ~, 4 ~ ~~:-
~ I ~~ 4 :~~[d1I~~~ ~:,.~'.Ar.,;5 _ ~ ~ ' ~o~~~
II 1 · r. t3l'i' lJf.W . ~ 10"'. · V V ~ ;-
r ~ 11 . Vi" 1
_ I _\, ,_, _ .:; ~ .. : - I "_. ~ ~.,;:~tM
~ h · ll" fl ~., · till!! ~
~ ~ ~ ~ : =:: .. ~ M V ----... ~ ~
~ ~ ~ : ...~ ~ ~ l;; ~ ~ /)
: ~~ ~ i~ i 'I~ :: .Lf2.--;t~~l~ (
1 U. . u. _'I ,c--- r:r."I~~ I
f---- I-- r-- ~ ~ I ~ ~ ~4!'!l1 - - /
. 1 1 . <i ~ <i ~ t- .1. .J _1- L .1. ~ / -
,- 7 ~.~ ~~ I
10 'to U ~U 10 I
~ ~ ~ f-- ~..I~~~ 11 'tt 1
"-- 11 ~~~ '"~ ~ ~ ,,")
@\ ~~ ~E ,. ~ - / "
~~ \F~!1 ~ ~ ,,/
r 11 11
I
I
,
1
I
1
I
'""""
I
Mile Marker
51.75
Island Vaca Key
Property Seacrest Heights Subdivision (Seacrest Apartments)
, . :1
",fl. \'.11- i~O ~ fl.\ \'. ~O \'.