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Item Q10 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date. July 19 2006 - KW Division: County Attorney Bulk Item: Y es ~ '\Jo Department: ----.C.OUI1Jy Attorney S1aff Contact Person. Suzanne A Hutton AGENDA ITEM WORDING: Approval of rel';.wJ development Agreement proposed under Section 380, Florida Statutes, for the purchase of land located on Stock Island by Monroc County from Overseas Redevelopment ('ompany, LLe.. at the request of the Florida Department (?f('omnllllJity Affairs. ITEl\-l RACKGROU~D: On June 2], 2006, the Hoard approved a development agreement betv.,'cen Overseas Redt!l'e/opment Company, fIe., Monroe County and the F/or;da j)epartment f?f COmnl1IlU',), Affa;rs for transmittal to DCA for tinal approval and execution. DCA subsequently requested onc change to Item 2Ad, beginning on Line 9, Page 4 (replacing t\\'o (2) commas with semi-colons and deleting three words "'.vithin either description" The revision to the Agreement requires Board approval prior to its execution by DCA PREVIOUS RELEVANT ROCC ACTION: On June 21, 2006, the Board approved a proposed 380 Development Agreement between O\'erseas Redevelopment Company, lIe., A10/1rot' ('olln~}' and the rlorida Department ofComnnmilY A.ffairs. CONTflA.CT lAG RE EM ENT CHAN G ~S: '\J/A STAFF RECOI\lMEN DATIONS: Approval of the revised Agreement. TOTAL COST: ~/A BLDGETED: Yes No COST TO COUNTY: NiA. SOURCE OF FUNDS: REVENUE PRODUCIl\G: Yes \10 AMOUNT PER MONTH Year APPROVED BY: County Atty ~ OMBlPurchasing d Risk Managemcnt --LYJ //",/? ~(// L' DIVISION DIRECTOR APPROVAL: ~_ __ _ _ {~ ~/ -- /~,SQZA NE AlHlITON, COLNTY ATTORNEY / c' DOCUMENTATION: Inc~(( " X Not Required DlsrOSITION: AGENDA IlL\'1 # Rcviscd :? /05 Page 1 of 1 Peters-Katheri ne From: H utton-Suzan n e Sent: Friday, July 07, 2006 229 PM To: Peters-Katherine Subject: FW: ORC 380 Attachments: ORC 380 clean version 6-29.doc; ORC 380 w strikethru underlin 6-29 doc from: Hutton-Suzanne Sent: Thursday, June 29, 2006 5:03 PM To: Sanders-Jerry; 'Richard.5hine@dca.state.fl.us' Cc: koeni g@fkhlaw.com; ma rston@fkhlaw.com; Speha r-Dixie Subject: RE: ORC 380 This is wh'lt will go on the next agenda, if OK with everyone, The only change is on paqc 4, in item 24.d From: Sanders-Jerry Sent: Thursday, June 29, 2006 4:22 PM To: Hutton-Suzanne Subject: RE: ORC 380 Suzanne. Here it is. Let me know ifyol! want me to do anything, Jerry From: Hutton~SUlanne Sent: Thursday, June 29, 20063:39 PM To: Sanders-Jerry; 'Richard.5hine@dca.state.f1.us' Cc: Peters-Katherine; Spehar-Dixie Subject: ORC 380 Jerry The item that went on the 6/21 agenda under Dixie's add-on item NB was sent to DCA. They want one more change. It is significant enough, although very little in the way Of actual changIng (2 semi-colons, adding back an 'or," and the deletion of three words) that it needs to go back. yet again, to the SOCC. Please email me the final version (fer 6/21) word document, and I will make the changes & place on next agenda I have talked to John Marsten, and the developer agrees thaI: 1) The parties always intended that the units could not be transferred off~site into a Tier 1 zoning district, which the qualifier language later in the sentence negates: and that 2,1 the change actually provides greater environmental protection, so everyone should theoretieally be happy to agree to the change. S";:a-e ,..;' ';Ji<<tt- County Attorney MOllroe Counly 1-'0 tlox 1026 Ke\( We5t. FI 33041-1026 :.m-iiOii:-J470 7/7/2006 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 DepartmenC), Overseas Redevelopment Campau)', LLC (hcreinal1er 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 9 380 032(3). Florida S'/atules. 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, Norida 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 3RO, Florida ,)'fa/llles, the Environmental Land and Water Management Act (the" AcC), which includes provisions relating to areas of critical state concern; and WHEREAS, DCA is authorized by g 380_032(3), Florida ,)'tatu/es, 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 rcal property located on Stock Island, Florida comprising approximately 3 56 acres, as is morc fully described in Appendix "A'", also knO\\ill Overseas Trailer Park (the "PropeI1y"), 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 3 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 \VHEREAS, 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 bet\veen the County and ORC; and May 3, 2006 Page lof6 \VHFRFAS, the goal oC the partics was to seek a means to preserve atl'ordable housing by idcntifving a plan that \\ould create workforce housing units and rccognize certain remaining market ratc units on the Property; and WHEREAS, it is in the public interest and consistent with current County ordinances and planning iniliatives 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 O\vnership w'hen possible~ and WHEREAS, the County recognizes that to achieve this public purpose it is necessary to provide Rate of Gro\\1h Ordinance rights (ROGO units) as part of the purchase price incentive to private landowners in the position afORe NOW, THEREFORE, in consideration of the mutual covenants and the terms and conditions set f<.mh hereafter, the County, ORC and DCA agree as follows. I. incorporation of Recitals. All of the t()regoing recitals are incorporated into this Agreement "'l Developmt."lIt A2,reements 1.1 The parties agrec that thc Property that is subject of this agreement, based on the most accuratc historical inCormation available, has sixty-three (63) ROGO units allocated to the Property. "'l ! The parties agree that ORC 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 fi'om ORC pursuant to the follO\ving terms and conditions a Thc County will pay TO ORe the sum of Two Million Five Hundred Thousand Dollars ($2,500,000.00) in cash in exchange for the transfer of ORe s fee simple ownership in the Property' b. The County "viIl lease the Propeny back to ORC in a lease format approved by the County and ORC for a term of ninety-nine 1\1ay 3, 2006 Page 2 of6 May 3,2006 (99) years for a rental rate of Ten Dollars ($1 (00) per year, As tenant, ORC shall assume all expenses and obligations of ownership of the Property, As set forth below, ORC will redevelop the Property into a workforce housing community, which ORC will operate and manage consistent 'vvith the County's workforce housing regulations, as amended from time to time, including oversighl: by the County Housing Authority. c, The County will allocate eighteen (18) of its atTordable ROGO units in its inventory to ORC for the redevelopment project, and ORC will provide thirty-one (31) of its ROGO units to the project. Said eighteen (18) Count)' units and thirty-one (31) ORC units shall be used by ORe to redevelop the Property into a forty-nine (49) unit \vorkforce housing community, The County may substitute thirty-one (3 I) of its affordable housing ROGO allocations for the 31 ORC units and in which event ORC will assign the 31 ORC market rate ROGO allocations to the County for its use, Therea::'ter, ORC shall O\vn 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 ORC shall have tbe greatest possible latitude under the workforce housing guideline:,; 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 c1assi fication. d. The remaining thirty-two (32) market rate ROGO units retained by aRC may be sold by ORC upon such terms and conditions as it in its sole and absolute discretion deems appropriate, and sueh units may be tramferred 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 Page 3 of6 the redevelopment of tbe Property' as sct 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 transferrcd beyond the Lovver Keys District boundaries unless and until the nutrient reduction system is officially dispcnsed with as a result of official state action or judicial decree. The units being transferred ofl-site may not be transferred in a Tier 1 zoning district or a special protection area if the construction of the units 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. r Until such tinw as Monroe County shall adopt .'workforce housing" regulations ORC shall comply in all respects with the definition of "affordable housing" in thc Monroe County Code and shall additionally require each unit purchaser or adult occupant to be a member of the !\1onroe County w'Ofkforce, i.e to be gainfully employed, full time, in Monroe County at the time of purchase or occupancy and 10 remain so employed for not less than five ycars thereaftcr. 3, Construction of the Ae:reem-ent. 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 40f6 4 General Provisions. The County will not take any oiTlcial action through its agents or employees which would contravene, interfere with or alter an)' provision in this agreement. S Authorized Shmatures. The Board of County Commissioners of Monroe County, or its authorized designee, shall execute this Section 380.032 Agreement on behalf of the County follo\ving 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 ollicer. 6. Entirety of A2reement, 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 Coumy, DCA and ORC 7 DUDlicated 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 Agreemenl pursuant to 99380,05 and 380,11, Norida ,\'taflltes. or as othetwise provided by law. 9 Scone of Authoritv. This St~ction 380.032 Agreement affects the rights and obligations of the County, DCA and ORC as provided under the terms herein and Chapter 380, Norida Staluti!.\'. 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 slate law or local ordinance for any development authorized by this Agreement except as othcrvvisc provided herein. 10. Effective Date. This Agreement shall take effect upon signature of the last of the parries to sign this Agreement May 3, 2006 Page Sof6 IN \VIT1\'FSS WHEREOF, the parties by" and through their rcspectiv'e undersigned duly authorized representat,ves have executed this Agreement on the dates and year below written COUNTY OF MONROE: OVERSEAS REDt<:VELOPMENT COMPANY, LLC DCA M ayor/Chairman by: Joe Cleghorn, its Manager Director ()ivision of Community Planning, DCA Date signed Date signed Date signed 'Y c;~; Date ANN . HUn UN co UNT~TO ')f(El- 1 }/ tJ May 3, 2006 Page60f6