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Item N8 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY ADD-ON ITEM Division: Comm. Dixie Snehar Department: Corom. Dixie Spehar Staff Contact Person: Jerrv D. Sanders. ESQ. AGENDA ITEM WORDING: Approval of revised development agreement proposed under Section 380, Florida Statutes, for the purchase of land located on Stock Island by Monroe County from Overseas Redevelopment Company, LLC. Meeting Date: June 21. 2006 Bulk Item: Yes -1L- No DOCUMENTATION: DISPOSITION: ITEM BACKGROUND: To preserve workforce housing in Monroe County, steps must be taken to preserve existing workforce housing in existing trailer parks. To meet the needs of Overseas Redevelopment Company, UC, the County plans to agree to pay $2.5 million for the purchase of the property (formerly owned by BOl/nty Fisheries, fne. and known as Oversea1i Trailer Park), which is less than 65% of appraised fair market value, and allocate 18 affordable ROGa credits to the seller. Overseas Redevelopment Company. LLC may then transfer oftSite 18 market rate ROGO pemlits and it's over density market rate ROGO permits (approximately 14) to off site locations. The County will lease the property to the developer for 99 years. Seller will build on County land 49 workforce housing units to sell to qualified buyers over the next two years. The Planning Commission considered the proposed 380 agreement on May 10, 2006 and recommended approval with some minor changes which have been incorporated. The site plan will require hearings by the Planning Commission. Subsequenlto the BOCC approval at meeting on May 16, 2006 DCA requested the changes indicated on attached mark-up version of the 380 Agreement. PREVIOUS RELEVANT BOCC ACTION: 05/1612006 BOCC approval of Development Agreement under Section 380, Florida Statues, for the purchase of land located on Stock Island by Monroe County from Overseas Redevelopment Company. 4/19/2006 HOCC approval of Letter of Understanding with FL Department of Community Affairs concerning affordable ROGa allocations. 4/19/2006 HaCC approval of Ordinance 017-2006 amending Sections 9.5-4 and 9.5-266, Monroe County Land Development Regulations, regarding multi-unit development and redevelopment for affordable honsing. 3/15/2006 enacted Ordinance No. 005-2006 implementing an Affordable and Employee Housing purchase and development program. 3/15/2006 BOCC directed staff to continue to negotiate an Agreement with Oversells RedeveJopme11l Company, LLC (formerly known as BOl/my Fisheries. fllc.). 2/15/06 HOCC approval to advertise for one public hearing to be held March 15, 2006 in Marathon to consider adoption of County Ordinance establishing Affordable Housing Purchase and Development Program. 1/18/2006 HOCC directed staff to work with BOl/nty Fisheries. fne. to draft the proposed Development Agreement with Mooroe Connty and the FL Department of Community Affairs under Chapters 163 and 380. 1/18/2006 BOCC approval of Request for Proposals for the purchase of land by the County and its development for affordable housing and advertisement for the opening of sealed proposals to be received on April), 1006 for this purpose. CONTRACT/AGREEMENT CHANGES:N/A STAFF RECOMMENDATIONS: Approval TOTAL COST: $2.5 Million BUDGETED: Yes No COST TO COUNTY: $2.5 Million SOURCE OF FUNDS:Previouslvbude.eted and as otherwise directed by BOCC REVENUE PRODUCING: Yes No AMOUNT PER MONTH_ Year_ APPROVED BY: County Atty -1L- OMB/Purchasing _ Risk Management_ DIVISION DIRECTOR APPROVAL: A.~:. 'n1. \-If, l_. ~ issioner Dixie Spehar Included X Not Reqllired_ ^^ J I V>' 0'. AGENDA ITEM #J.'oJ.il- FINAL VERSION OF 380 AGREEMENT WITH OVERSEAS REDEVELOPMENT COMPANY, LLC .j AGREEMENT Pursuant to Section 380.032(3), Florida Statutes THIS SECTION 380.032 AGREEMENT is entered into between the Department of Community Affairs, an agency of the State of Florida (hereinafter referred to as "DCA" or Department"), Overseas Redevelopment Company, LLC (hereinafter referred to as "ORC"), and Monroe County, a political subdivision of the State of Florida (hereinafter referred to as "County"), pursuant to the terms and conditions herein and S 380.032(3), Florida Statutes. WHEREAS, Monroe County, Florida includes within its boundaries all of the Florida Keys and is known as an Area of Critical State Concern, as designated under Sections 380.05, Florida Statutes, and Chapter 28-36, F.A.C.; and WHEREAS, the DCA is the state land planning agency having the power and duty to exercise general supervision of the administration and enforcement of Chapter 380, Florida Statutes, the Environmental Land and Water Management Act (the "Act"), which includes provisions relating to areas of critical state concern; and WHEREAS, DCA is authorized by S 380.032(3), Florida Statutes, to enter into an agreement with any landowner, developer or other governmental agency as may be necessary to effectuate the provisions and purposes of the Act, or any related rule; and WHEREAS, in March, 2005 ORC entered into a contract to purchase a parcel of real property located on Stock Island, Florida comprising approximately 3.56 acres, as is more fully described in Appendix "A", also known Overseas Trailer Park (the "Property"), pursuant to which contract ORC, as contract vendee, is entitled to seek and obtain government approvals for the development of the Property; and WHEREAS, after acquiring the Property, ORC presented an application for an amendment to a conditional use to the County to convert sixty-three (63) mobile home sites to forty-nine (49) market rate housing units on the property; and WHEREAS, ORC negotiated with the County the terms of an agreement to resolve vested rights and other development issues that were the subject of protracted discussions between the County and ORC; and May 3, 2006 Page I of6 WHEREAS, the goal of the parties f$olill of ~ liisetlssi9fl!l was to seek a means to preserve affordable housing by identifying a plan that would create workforce housing units and recognize certain remaining market rate units on the Property; and WHEREAS, it is in the public interest and consistent with current County / " , . ordinances and planning lH.i,til1tives that Overseas Trailer Park be developed as workforce housing, rather than market!~. units; and I WHEREAS, it is in the public interest and consistent with County planning initiatives that private lands capable of supporting workforce housing developments be purchased and brought into public ownership when possible; and WHEREAS, the County recognizes that to achieve this public purpose it is necessary to provide Rate of Growth Ordinance rights (ROGO units) as part of the purchase price incentive to private landowners in the position ofORC. NOW, THEREFORE, in consideration of the mutual covenants and the terms and conditions set forth hereafter, the County, aRC and DCA agree as follows: ]. Incorporation of Recitals. All of the foregoing recitals are incorporated into this Agreement. ( 2. Development Ae:reements. 2.]. The parties agree that the Property that is subject of this agreement, based on the most accurate historical information available, has sixty-three (63) ROGO units allocated to the Property. 2.2. The parties agree that aRC currently has the lawful right to construct forty-nine (49) market rate units on the Property. 2.3. The parties agree that there presently are an additional fourteen (14) market rate ROGO units on the Property that may be transferred off site by ORC. 2.4. The County will purchase the Property from aRC pursuant to the following terns and conditions: ,.-_.- \ i. a.1 The County will pay to ORC the sum of Two Million Five Hundred Thousand Dollars ($2,500,000.00) in cash in exchange for the transfer of ORC's fee simple ownership in the Property. r--.\ ! bl The County will lease the Property back to ORC in a lease L_ format approved by the County and ORC for a term of ninety-nine May 3, 2006 Page 2 of6 (99) years for a rental rate of Ten Dollars ($10.00) per year. As tenant, aRC shall assume all expenses and obligations of ownership of the Property. As set forth below, aRC will redevelop the Property into a workforce housing community, which aRC will operate and manage consistent with the County's workforce housing regulations, as amended from time to time, including oversight by the County Housing Authority. fClThe County will allocate eighteen (18) of its affordable RaGa units in its inventory to aRC for the redevelopment project, and aRC will provide thirty-one (31) of its RaGa units to the project. Said eighteen (18) County units and thirty-one (31) aRC units shall be used by aRC to redevelop the Property into a forty-nine (49) unit workforce housing community. The County may substitute thirty-one (31) of its affordable housing RaGa allocations for the 31 aRC units and in which event aRC will assign the 31 aRC market rate RaGa allocations to the County for its use. Thereafter, aRC shall own all forty-nine (49) units and shall be able to sell the same to third parties in accordance with the County's workforce housing guidelines. The parties agree that aRC shall have the greatest possible latitude under the workforce housing guidelines in its selling of units in the community, and shall be able to sell such units at the maximum prices permissible under the workforce housing guidelines, including but not limited to those prices chargeable to people in the "moderate" income classification. r-- p.; The remaining thirty-two (32) market rate RaGa units retained by aRC may be sold by aRC upon such terms and conditions as it in its sole and absolute discretion deems appropriate, and such / units may be transferred off the Property singly, in groups or all together to a receiver site or sites. aRC shall be entitled to transfer such units at such time as it has been issued a building permit for May 3, 2006 Page 3 of 6 the redevelopment of the Property as set forth above. Each of the thirty-two (32) ROGO units to be transferred off the Property is deemed to meet the transfer criteria established by County regulations and ordinances and shall be transferable as of right to a receiver site. ' The units transferred off may not be transferred beyond the Lower Keys District boundaries unless and until the nutrient reduction system is officially dispensed with as a result of official state action or judicial decree. The units being transferred j off-site may not be transferred in a Tier I zoning district)a special protection area if the construction of the units within either description would require clearing of natural habitat, or if evaluated under ROGO the site would receive negative points under habitat protection, threatened or endangered species, or critical habitat. ri.i The transfer of affordable units from one owner to another will be monitored by the County in a manner to be determined by the County from time to time. f. Until such time as Monroe County shall adopt "workforce housing" regulations ORC shall comply in all respects with the definition of "affordable housing" in the Monroe County Code and shall additionally require each unit purchaser or adult occupant to be a member of the Monroe County workforce, i.e. to be gainfully employed, full time, in Monroe County at the time of purchase or occupancy and to remain so employed for not less than five years thereafter. 3. Construction of the Al!reement. The parties hereto have entered into this Section 380.032 agreement in recognition of the unique circumstances applicable to the Property, and in consideration of the public benefits to be obtained by preserving workforce housing stock. Accordingly, this Section 380.032 Agreement should not be construed as establishing precedent or procedure for any other development application. May 3, 2006 Page 4 of 6 4. General Provisions. The County will not take any official action through its agents or employees which would contravene, interfere with or alter any provision in this agreement. 5. Authorized Sienatures. The Board of County Commissioners of Monroe County, or its authorized designee, shall execute this Section 380.032 Agreement on behalf of the County following approval of this Agreement by the Board of County Commissioners. The Director of the Division of Community Planning, or his/her authorized designee, shall execute this Agreement on behalf of DCA. ORC shall execute this Agreement by its duly-authorized officer. 6. Entirety of Aereement. The County, DCA and ORC further agree that this Section 380.032 Agreement contains the entire and exclusive understanding and agreement among the parties and may not be modified in any manner except by an instrument in writing and duly signed by the County, DCA and ORC. 7. Dunlicated Orieinals. This Section 380.032 Agreement may be executed in any number of originals, all of which evidence one agreement, and only one of which need be produced for any purpose. 8. Enforcement. In the event of a breach of this Section 380.032 Agreement, or failure to comply with any condition of it, the County, DCA and ORC may enforce this Agreement pursuant to ~~ 380.05 and 380.11, Florida Statutes, or as otherwise provided bylaw. 9. Scone of Authoritv. This Section 380.032 Agreement affects the rights and obligations of the County, DCA and ORC as provided under the terms herein and Chapter 380, Florida Statutes. This Section 380.032 Agreement is not intended to influence or determine the authority or decisions of any other state or local government or agency in issuance of any other permits or approvals that might be required by state law or local ordinance for any development authorized by this Agreement except as otherwise provided herein. 10. Effective Date. This Agreement shall take effect upon signature of the last of the parties to sign this Agreement. May 3, 2006 Page 5 of6 IN WITNESS WHEREOF, the parties by and through their respective undersigned duly authorized representatives have executed this Agreement on the dates and year below written. COUNTY OF MONROE OVERSEAS REDEVELOPMENT COMPANY, LLC DCA County Manager by: Joe Cleghorn, its Manager Director Division of Community Planning, DCA Date signed Date signed Date signed 1=~1 May 3, 2006 Page 6 of6 VERSION OF 380 AGREEMENT INCLUDING UNDERLINE AND STRIKE THROUGHS WITH OVERSEAS REDEVELOPMENT COMPANY, LLC AGREEMENT Pursuant to Section 380.032(3), Florida Statutes THIS SECTION 380.032 AGREEMENT is entered into between the Department of Community Affairs, an agency of the State of Florida (hereinafter referred to as "DCA" or Department"), Overseas Redevelopment Company, LLC (hereinafter referred to as "ORC"), and Monroe County, a political subdivision of the State of Florida (hereinafter referred to as "County"), pursuant to the terms and conditions herein and S 380.032(3), Florida Statutes. WHEREAS, Monroe County, Florida includes within its boundaries all of the Florida Keys and is known as an Area of Critical State Concern, as designated under Sections 380.05, Florida Statutes. and Chapter 28-36, FA.C.; and WHEREAS, the DCA is the state land planning agency having the power and duty to exercise general supervision of the administration and enforcement of Chapter 380, Florida Statutes, the Environmental Land and Water Management Act (the "Act"), which includes provisions relating to areas of critical state concern; and WHEREAS, DCA is authorized by S 380.032(3), Florida Statutes, to enter into an agreement with any landowner, developer or other governmental agency as may be necessary to effectuate the provisions and purposes of the Act, or any related rule; and WHEREAS, in March, 2005 ORC entered into a contract to purchase a parcel of real property located on Stock Island, Florida comprising approximately 3.56 acres, as is more fully described in Appendix "A", also known Overseas Trailer Park (the "Property"), pursuant to which contract ORC, as contract vendee, is entitled to seek and obtain government approvals for the development of the Property; and WHEREAS, after acquiring the Property, ORC presented an application for an amendment to a conditional use to the County to convert sixty-three (63) mobile home sites to forty-nine (49) market rate housing units on the property; and WHEREAS, ORC negotiated with the County the terms of an agreement to resolve vested rights and other development issues that were the subject of protracted discussions between the County and ORC; and May 3, 2006 WHEREAS, the goal of the parties foells of the disellssioas was to seek a means to preserve affordable housing by identifying eh!lllge the develoflmeat pllllls away from aRC's entitlement to Bllild market rate Ilaits and toward a plan that would create workforce housing units and recognize certain remaining market rate units on the Property; and WHERE.^,S, DC^' ia a letter dated Jllae 16, 2905 iadieated that it w('mld Bot llJ3fleal the rezoBing Beeessary for aRC to redeyelop tile Property Bllt indieated in said letter that "additional proteetion is needed to maintain proflerties that were formerly mobile home plHb as part of the affordable [workferee] HOllsing stoel("; and [Delete this paragraph as it is not necessary to the final agreement] WHEREAS, it is in the public interest and consistent with current County ordinances and planning initiatives that Overseas Trailer Park be developed as workforce housing, rather than market rate units; and WHEREAS, it is in the public interest and consistent with County planning initiatives that private lands capable of supporting workforce housing developments be purchased and brought into public ownership when possible; and WHEREAS, the County recognizes that to achieve this public purpose it is necessary to provide Rate of Growth Ordinance rights (ROGO units) as part of the purchase price incentive to private landowners in the position ofORC. NOW, THEREFORE, in consideration of the mutual covenants and the terms and conditions set forth hereafter, the County, aRC and DCA agree as follows: I. Incorporation of Recitals. All of the foregoing recitals are incorporated into this Agreement. 2. Development Al!reements. 2.1. The parties agree that the Property that is subject of this agreement, based on the most accurate historical information available, has sixty-three (63) RaGa units allocated to the Property. 2.2. The parties agree that aRC currently has the lawful right to construct forty-nine (49) market rate units on the Property. 2.3. The parties agree that there presently are an additional fourteen (14) market rate RaGa units on the Property that may be transferred off site by ORC. May 3, 2906 Page 2 of6 2.4. The County will purchase the Property from aRC pursuant to the following terms and conditions: a. The County will pay to aRC the sum of Two Million Five Hundred Thousand Dollars ($2,500,000.00) in cash in exchange for the transfer of aRC's fee simple ownership in the Property. b. The County will lease the Property back to aRC in a lease format approved by the County and aRC for a term of ninety-nine (99) years for a rental rate of Ten Dollars ($10.00) per year. As tenant, aRC shall assume all expenses and obligations of ownership of the Property. As set forth below, aRC will redevelop the Property into a workforce housing community, which aRC will operate and manage consistent with the County's workforce housing regulations, as amended from time to time, including oversight by the County Housing Authority. c. The County will allocate eighteen (18) of its affordable RaGa units in its inventory to aRC for the redevelopment project, and aRC will provide thirty-one (31) of its RaGa units to the project. Said eighteen (18) County units and thirty-one (31) aRC units shall be used by aRC to redevelop the Property into a forty-nine (49) unit workforce housing community. The County may substitute thirty-one (31) of its affordable housing RaGa allocations for the 31 aRC units and in which event aRC will assign the 31 aRC market rate RaGa allocations to the County for its use. Thereafter, aRC shall own all forty-nine (49) units and shall be able to sell the same to third parties in accordance with the County's workforce housing guidelines. The parties agree that aRC shall have the greatest possible latitude under the workforce housing guidelines in its selling of units in the community, and shall be able to sell such units at the maximum prices permissible under the workforce housing guidelines, including but not limited May 3, 2006 Page 3 of6 to those prices chargeable to people in the "moderate" income classification. d. The remaining thirty-two (32) market rate ROGO units retained by ORC may be sold by ORC upon such terms and conditions as it in its sole and absolute discretion deems appropriate, and such units may be transferred off the Property singly, in groups or all together to a receiver site or sites. ORC shall be entitled to transfer such units at such time as it has been issued a building permit for the redevelopment of the Property as set forth above. Each of the thirty-two (32) ROGO units to be transferred off the Property is deemed to meet the transfer criteria established by County regulations and ordinances and shall be transferable as of right to a receiver site. The units transferred off may not be transferred beyond the Lower Keys District boundaries unless and until the nutrient reduction system is officially dispensed with as a result of official state action or judicial decree. The units being transferred off-site may not be transferred in a Tier I zoning district ef a special protection area if the construction of the units within either description would require clearing of natural habitat. or if evaluated under ROGO the site would receive negative points under habitat protection. threatened or endangered species. or critical habitat. e. The transfer of affordable units from one owner to another will be monitored by the County in a manner to be determined by the County from time to time. f. Until such time as Monroe County shall adopt "workforce housing" regulations ORC shall comply in all respects with the definition of "affordable housing" in the Monroe County Code and shall additionally require each unit purchaser or adult occupant to be a member of the Monroe County workforce, i.e. to be gainfully employed, full time, in Monroe County at the time of purchase or May 3, 2006 Page 4 of6 occupancy and to remain so employed for not less than five years thereafter. 3. Construction of the Aereement. The parties hereto have entered into this Section 380.032 agreement in recognition of the unique circumstances applicable to the Property, and in consideration of the public benefits to be obtained by preserving workforce housing stock. Accordingly, this Section 380.032 Agreement should not be construed as establishing precedent or procedure for any other development application. 4. General Provisions. The County will not take any official action through its agents or employees which would contravene, interfere with or alter any provision in this agreement. 5. Authorized Sienatures. The Board of County Commissioners of Monroe County, or its authorized designee, shall execute this Section 380.032 Agreement on behalf of the County following approval of this Agreement by the Board of County Commissioners. The Director of the Division of Community Planning, or hislher authorized designee, shall execute this Agreement on behalf of DCA. aRC shall execute this Agreement by its duly-authorized officer. 6. Entiretv of Aereement. The County, DCA and aRC further agree that this Section 380.032 Agreement contains the entire and exclusive understanding and agreement among the parties and may not be modified in any manner except by an instrument in writing and duly signed by the County, DCA and aRC. 7. Duplicated Orieinals. This Section 380.032 Agreement may be executed in any number of originals, all of which evidence one agreement, and only one of which need be produced for any purpose. 8. Enforcement. In the event of a breach of this Section 380.032 Agreement, or failure to comply with any condition of it, the County, DCA and aRC may enforce this Agreement pursuant to 99 380.05 and 380.11, Florida Statutes, or as otherwise provided bylaw. 9. Scope of Authoritv. This Section 380.032 Agreement affects the rights and obligations of the County, DCA and aRC as provided under the terms herein and Chapter 380, Florida Statutes. This Section 380.032 Agreement is not intended to influence or determine the authority or decisions of any other state or local government or May 3, 2006 Page 5 of6 agency in issuance of any other permits or approvals that might be required by state law or local ordinance for any development authorized by this Agreement except as otherwise provided herein. 10. Effective Date. This Agreement shall take effect upon signature of the last of the parties to sign this Agreement. IN WITNESS WHEREOF, the parties by and through their respective undersigned duly authorized representatives have executed this Agreement on the dates and year below written. COUNTY OF MONROE OVERSEAS REDEVELOPMENT COMPANY, LLC DCA by: Joe Cleghorn, its Manager County Manager Director Division of Community Planning, DCA Date signed Date signed Date signed May 3, 2006 Page 6 of6