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Item G10BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: _March 19, 2008 Division: Growth Management and Housing and Community Development Bulk Item: Yes X No — Department: AGENDA ITEM WORDING: Staff Contact Person: Lisa Tennyson/292-4462 Approval of resolution to reserve 16 affordable allocations for Caya Place, LLC to construct 16 employee/workforce housing units in Big Pine Key. ITEM BACKGROUND: Mr. Richard Beal is the owner of a parcel of land, located at 30641 US Highway 1 on Big Pine Key, at approximate Mile Marker 31. Mr. Beal has expressed his intention to develop sixteen (16) units of workforce housing to be known as the Caya Place LLC project on the eastern parcel of the subject property. The contiguous western parcel of the property currently houses Skeeter's Marine. The subject parcel is scarified Tier III and is zoned Suburban Commercial (SC) allowing for the development of 16 units of employee housing as a minor conditional use. Mr. Beal is requesting to reserve 6 current affordable allocations for Big Pine Key and to borrow forward 10 affordable allocations for Big Pine Key for a total of 16 affordable allocations. The project also faces outstanding and unresolved mitigation issues related to the Big Pine Key HCP and US Fish and Wildlife Service's Incidental Take Permit. This ROGO reservation, if approved, does not absolve him from complying with the mitigation requirements. PREVIOUS RELEVANT BOCC ACTION: On March 15, 2006, the Board adopted Ordinance 009-2006 allowing for, upon BOCC approval, the reservation and borrowing forward of affordable dwelling unit allocations for affordable and employee housing projects. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Approval TOTAL COST: N/A BUDGETED: Yes No COST TO COUNTY: N/A SOURCE OF FUNDS: REVENUE PRODUCING: Yes — No _ AMOUNT PER MONTH Year APPROVED BY: County Atty X OMB/Purchasing _ Risk Management DOCUMENTATION: Included X Not Required DISPOSITION: AGENDA ITEM # Revised 8/06 RESOLUTION NO. -2008 A RESOLUTION OF THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS DIRECTING RESERVATION FOR AWARD OF SIXTEEN AFFORDABLE DWELLING UNIT ALLOCATIONS FOR CAYA PLACE LLC WORKFORCE HOUSING UNITS ON THE EASTERN PARCEL (RE 00111078.000000) OF PROPERTY LOCATED AT 30641 US HIGHWAY 1 (COMMONLY KNOWN AS SKEETER'S MARINE) AND SETTING TERMS AND CONDITIONS WHEREAS, the State of Florida and all local governments in the Florida Keys (each subject to Area of Critical State Concern mandates relating to housing affordability) recognize the need for affordable housing throughout the state and particularly in the Florida Keys where developable land for housing is extremely limited and expensive; and WHEREAS, the challenge of providing affordable housing opportunities in the Florida Keys is one requiring sensible and responsive use of residential unit allocations, including implementation of effective long-term preservation mechanisms; and WHEREAS, the owner of the property has expressed his intention to develop sixteen (16) units of workforce housing for the Caya Place LLC project (the "Project"), and has submitted a request to reserve allocations for this project (see attached Exhibit A) and has agreed to comply with the conditions set forth; and WHEREAS, due consideration should be given to relevant factors such as the capacity for allocation recipients to promptly transform allocation awards/reservations into finished and occupied affordable/workforce housing units; and WHEREAS, consideration must be given to factors such as individual developers' investments and commitments to embarking upon affordable/workforce housing projects, in the face of the time it takes to fully permit and finance a project; and WHEREAS, the developers have legitimate needs for some assurance that allocations are in fact and will remain available and or reserved for a reasonable time so that follow-through on initial commitments will in fact be justified; and WHEREAS, in accordance with Strategy 3.3 of the Master Plan for Future Development of Big Pine Key and No Name Key, the county shall retain and expand availability of affordable housing within the planning area to the greatest extent possible; and WHEREAS, Action Item 3.2.4 of the Master Plan for Future Development of Big Pine Key and No Name Key directs staff to allocate residential units within the Planning Area at the rate of no greater than ten (10) in any given year. More than ten (10) residential awards may be allocated if the excess consists of affordable units that may be accumulated and issued in any allocation period or "borrowed forward" from future allocations; and WHEREAS, two (2) affordable housing allocations are allowed per year on Big Pine Key and No Name Key, which can be borrowed forward five years as authorized by Ordinance No. 009-2006, for a total of ten (10) affordable allocations to be reserved for this Project; and WHEREAS, there are presently eight (8) affordable housing allocations currently available for Big Pine Key and No Name Key from which this Project will draw six (6) affordable allocations, so that two (2) affordable allocations remain available; and WHEREAS, the Incidental Take Permit in conjunction with the Big Pine Key Habitat Conservation Plan was issued by the USFWS on June 9, 2006 requiring the purchase of mitigated land to preserve a 3:1 H-value ratio for any development or redevelopment; and WHEREAS, the BOCC finds that the Project identified herein is in the County's interests and will not be built with any direct financial outlay from the county. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: Section 1: The Monroe County Planning Department shall direct and approve the reservation and set aside of sixteen (16) affordable ROGO allocations for sixteen units of workforce housing for the Caya Place LLC project on Big Pine. Section 2: If building permits for the related units are not issued within one (1) year from the date of this resolution the allocations shall automatically without further County action revert to the County. Section 2: The developer, Caya Place LLC, has committed, as per his correspondence to Growth Management dated February 22, 2008 (Exhibit A), to abide by Monroe County Code Affordable Housing guidelines and requirements, all applicable Building Code requirements, and requirements of the Planning Department. Section 3: The developer, Caya Place LLC, has further committed in the same correspondence (Exhibit A) to abide by the requirements of all other appropriate regulatory agencies of the County, State, or Federal Government, including but not 2 limited to US Fish and Wildlife Service and the mitigation requirements of the Incidental Take Permit and the Big Pine Key Habitat Conservation Plan. Section 4: The Planning Staff is hereby authorized to process expeditiously permit related applications for the above -referenced project. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida at a regular meeting held on the day of 2008. Mayor Charles "Sonny" McCoy Mayor Pro Tem Mario Di Gennaro Commissioner Dixie Spehar Commissioner Sylvia Murphy Commissioner George Neugent BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA Mayor Charles "Sonny" McCoy (SEAL) ATTEST: DANNY L. KOLHAGE, CLERK Deputy Clerk APPROVE S TO FORM: County orney _ D0Cf Exhibit "All GayaPlace V:) 305-H72-9040 — wvv place. et)nj Place PO BOX 430273 LLC Big Pine Key, F1 33043 2/22/2008 Morro, County (3roh,-, kjanagerr,,_ 4 1 Andrew Trivette, Plr��Ise find b�-Jo�6, thy, SCOPCIOIF the Gay3 'lace pr,)^t and the , oricli PIS Jc(-,ept 6 �111,flerstand and I'E-Jeferlce to P11, -1 Place r)ro(Jost'd Project, i re resqLjest that PAo nrOe coonty award by ()lUl;or1 of the )CC th�-' available 16 ROGO aftor0abte hosm, alio(�at�o -rjy Big p1ne Key P(OMAy RE# c)o I I 178-f)00000 before n,,,; r re Incurred -nroe county Code laws 3,3d Prevision of afto dar) 0 2 1 Wit, aL��Je 4v(th all the tvin torther eVe0ditUres a hc'�Isfrlg aS .Ivrttten 11) the Monroe Count Code at tti,e of ROGO -31focation !S,-;k1a1rCe l 3 t wilt 60uses at no cost tf-) 4 Monroe County Monroe that the MCP & ITP for Biq Pine Kay I`Pqmfes CIO not offer to tray any rnitigatior either tn moneys or any, (311je , type or P; m-s ij wjttlr�q. of such Costs, if any and I *erand costs'tthe arm . gifeseotc-cl I understand that the bank, it the buticlir)g Permits are not , ns awarded wjfj revert 'n bark ro th , 0 R G Issued vv;thjn oneraters Tar gear FFcn_i rhi. award by re!,jc);Ljfo(1 from the 8(7(,C of said ajjoCat,,,,n, ask that the reqtjesf for the 'ab";Ve 16 ROGO aj!rcatjons agendaCt the BOCC for Prj,,Srbie ap proval and award wili be on the march Place LLC 91 TO: Monroe County Board of County Commissioners FROM: Lisa Tennyson, Affordable Housing Coordin THROUGH: Reggie Paros, Division Director of Housing and Community Development Townsley Schwab, Acting, Sr., Director of Planning & Environmental Resources DATE: February 28, 2008 SUBJECT: Reservation and Borrow Forward of affordable dwelling unit allocations for Caya Place LLC Workforce Housing project to be developed on the eastern parcel (RE 00111078.000000) of property located at 30641 US Highway (Commonly known as Skeeter's Marine) MEETING DATE: March 19, 2008 I. Summary Mr. Richard Beal is requesting that 16 affordable allocations be reserved from existing and future allocations for Big Pine Key for his proposed workforce housing project. Mr. Beal has expressed his intention to develop 16 single family homes for purchase, each deed -restricted as per the employee/affordable housing guidelines in the code of workforce housing Mr. Beal is the owner of the subject parcel, located at 30641 US Hi approximate Mile Marker 31. The property 1 on Big Pine Key, at cts tosts of two iguous p be known as the Caya Place arcels, an eastern e and a western parcel e that currently houses a commercial/ light industrial boat repair and storage enterprise, Skeeter's Marine. intends to build the 16 employee housing The subject parcel is zoned Suburban Commercial (SC) and is scarified Tier III. The proposed redevelopment for 16 units of workforce housing is consistent with this zoning and may be permitted with minor conditional use approval. However, the project faces outstanding and unresolved mitigation issues related to the Big Pine Key HCP and US Fish and Wildlife Service's Incidental Take Permit. The owner is working to resolve this requirement and acknowledges that the granting of the ROGO reservation, if approved, does not absolve him from complying with the mitigation requirements. 2. Background Mr. Beal has had several meetings with the Planning and Affordable Housing staff to discuss various approaches to the redevelopment of this property beginning in the early part of last year. His initial proposal, for which he was issued a Letter of Understanding in March 2007, included the aggregation of the eastern and western parcels and a mixed -use redevelopment including 35 new workforce housing units and the redevelopment of his commercial building. Previously, in January 2007, the Planning Department issued to Mr. Beal a Letter of Development Rights Determination stating the lawful establishment of 1,750 of non-residential floor area on the western parcel. Currently however, Mr. Beal is proposing only to focus on the vacant eastern parcel, and to construct 16 workforce housing units. His proposal to build workforce housing on the site is a permissible use. He has provided staff with a preliminary site plan, but has not submitted a conditional use application. Mr. Beal acknowledges that he will be required to submit a minor conditional use application and to adhere to all development requirements as per the Monroe County code as well as all Affordable Housing requirements. 3. Reserving existing allocations and borrowing future allocations Mr. Beal would like a commitment from the County that there will be available the necessary allocations for his workforce housing project on Big Pine Key before he commits the financial resources to the Caya Place project's design and development. He has submitted a written request to have 16 affordable ROGOs reserved for this project. This will require that we reserve Big Pine Key's current allocations and borrow forward from BPK's future allocations. Specifically, Mr. Beal is asking to receive 6 of the 8 currently available affordable allocations for BPK (leaving 2 allocations remaining for other potential users) and to borrow forward 10 allocations, which represents BPK's yearly allocations of 2 per year for the next five years. Six current allocations plus 10 borrowed forward allocations totals the 16 allocations required by the proposed project. Pursuant to MCC Section 9.5-122, the Board of County Commissioners may approve the reservation of housing allocations and the borrowing forward of affordable housing allocations available over the next five annual allocations. In previous approvals for ROGO reservations, the County has recognized that developers of affordable and workforce housing need some assurance that upon investing time and financial resources in the design and approval of their projects, that allocations will then be available to them. Additionally, in consideration that county subsidies for future affordable housing projects are not likely to be forthcoming due to severe budget constraints, projects such as this that can provide workforce housing with no direct subsidies may merit extra consideration. 4. Consistency with Livable Communikeys Plan for Big Pine Key and No Name Key Mr. Beal's proposal for workforce housing on his site, as well as his request to reserve and borrow from future allocations, is consistent with The Master Plan for Future Development of Big Pine Key and No Name Key: 2 • Strategy 3.3 of the plan: retain and expand availability of affordable housing within the planning area to the greatest extent possible; • Action Item 3.2.4: allocate residential units within the Planning Area at the rate of no greater than ten (10) in any given year. More than ten (10) residential awards may be allocated if the excess consists of affordable units that may be accumulated and issued in any allocation period or "borrowed forward" from future allocations • Action Item 3.3.4: consider provision of incentives for businesses to build affordable housing, including employee housing in conjunction with their businesses on US 1. 5. Habitat Mitigation Requirements Mr. Beal also faces significant habitat mitigation requirements that currently make his project financially unfeasible. The Incidental Take Permit in conjunction with the Big Pine Key Habitat Conservation Plan was issued by the US Fish and Wildlife Service (USFWS) on June 9, 2006 requires the purchase of mitigated land to maintain a 3 to 1 H-value ratio for any development or redevelopment. Mr. Beal has addressed this issue with the Planning Department and has taken the matter before the Monroe County Planning Commission. Mr. Beal also reports that he has discussed and is challenging the matter directly with the USFWS. It is staff s position that it is Mr. Beal's obligation to comply with the mitigation requirements or to resolve the issue in one way or another to the satisfaction of USFWS. 6. Conditions for Approval of ROGO Reservations Mr. Beal has submitted a request to reserve allocations for this project and agrees to comply with the conditions set forth (see attached Exhibit A, dated February 22, 2008): • If building permits for the related units are not issued within one (1) year from the date of the resolution the allocations shall automatically without further County action revert to the County. • Mr. Beal, aka Caya Place LLC, has committed, as per his correspondence to Growth Management (Exhibit A), to abide by Monroe County Code Affordable Housing guidelines and requirements, all applicable Building Code requirements, and requirements of the Planning Department. • Mr. Beal, aka Caya Place LLC, has further committed in the same correspondence (Exhibit A) to abide by the requirements of all other appropriate regulatory agencies of the County, State, or Federal Government, including but not limited to US Fish and Wildlife Service and the mitigation requirements of the Incidental Take Permit and the Big Pine Key Habitat Conservation Plan. 7. Staff Recommendation Provided that Mr. Beal comply with all conditions set forth, staff recommends approval. 3