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Item G09 G9 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 ' David Rice,District 4 Board of County Commissioners Meeting October 16, 2024 Agenda Item Number: G9 2023-2549 BULK ITEM: No DEPARTMENT: Land Authority Governing Board TIME APPROXIMATE: STAFF CONTACT: Cynthia Guerra 9:25 AM AGENDA ITEM WORDING: Approval of a Resolution of the Monroe County Comprehensive Plan Land Authority approving $2,000,000 for construction funding upon Key West Housing Authority receiving a loan commitment for funding for entire project and $8,000,000 for construction funding upon receipt of building permits from the City of Key West for the Key West Housing Authority for between 45 and 54 affordable rental units on property legally described as a Tract of land lying on the Island of Key West, Monroe County, Florida and being known as a portion of Lot 5, Lots 6 through 12, Block 17, and Lots 1 through 8, a portion of Lots 9 through 12, Block 18 and land lying North of said Blocks and being more particularly described as shown in Exhibit A with ID# 00054250-000000 subject to a Land Use Restriction Agreement (LURA); and authorizing the Chairman to execute documents in support of the project. ITEM BACKGROUND: The Key West Housing Authority (KWHA) is developing between 45 and 54 new units at Poinciana Plaza in the City of Key West. The number of units depends on whether they are able to obtain variances for setbacks, etc. The City of Key West requested $10,000,000 through Resolution 24-137 (attached) of construction funding from the Land Authority Key West fund. The resolution also includes a request for another project. However, we are just including background on the KWHA request. MCLA will disburse $2,000,000 when KWHA receives and provides to the MCLA Executive Director, a written loan commitment from a lender for the entire project cost and a proforma showing the entire project cost, certified by a licensed design engineer or architect. MCLA will disburse the remaining $8,000,000 when KWHA provides MCLA with written confirmation from the City of Key West indicating permits are ready for issuance for between 45 and 54 new units. Upon acceptance of$2,000,000, the KWHA shall sign and record a Land Use Restriction Agreement (LURA) shown in Exhibit A, restricting use of the subject property to affordable housing in accordance 2756 with section 380.0666(3)(a), Florida Statutes in perpetuity. Attached are DRAFT site plans showing the two options (45 or 54 units). We have also attached the memorandum from Albert P. Childress,previous City Manager at the time to the Key West Commissioners explaining the request. The City Commission's request for $10,000,000 is within the proposed FY25 budgeted amount. ADVISORY COMMITTEE ACTION: On September 25, 2024 the Committee voted 510 to recommend approval. PREVIOUS RELEVANT BOCC ACTION: N/A INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: USANavyPoincianaAptsKWHA4I MCLAResolAuthorizing$I OMFunding-GB.pdf.pdf USANavyPoincianaAptsKWHA3 9 S Overlay45Units.pdf U ANavyPoi cia aAptsKW A39 Overlay5 U its.pdf USANavyPoincianaAptsKWHA40KWMe oToKWCo issionRequesting$1 OMFundingForPoinciana USANavyPoincianaAptsKWHA40KWResol24-137Requesting$1 OM&$2.8M.pdf FINANCIAL IMPACT: N/A 2757 RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY APPROVING $2,000,000 FOR CONSTRUCTION FUNDING UPON KEY WEST HOUSING AUTHORITY RECEIVING A LOAN COMMITMENT FOR FUNDING FOR ENTIRE PROJECT AND $8,000,000 FOR CONSTRUCTION FUNDING UPON RECEIPT OF BUILDING PERMITS FROM THE CITY OF KEY WEST FOR THE KEY WEST HOUSING AUTHORITY FOR BETWEEN 45 AND 54 AFFORDABLE RENTAL UNITS ON PROPERTY LEGALLY DESCRIBED AS A TRACT OF LAND LYING ON THE ISLAND OF KEY WEST, MONROE COUNTY, FLORIDA AND BEING KNOWN AS A PORTION OF LOT 5, LOTS 6 THROUGH 12, BLOCK 17, AND LOTS 1 THROUGH 8, A PORTION OF LOTS 9 THROUGH 12, BLOCK 18 AND LAND LYING NORTH OF SAID BLOCKS AND BEING MORE PARTICULARLY DESCRIBED AS SHOWN IN EXHIBIT A WITH ID# 00054250-000000 SUBJECT TO A LAND USE RESTRICTION AGREEMENT (LURA); AND AUTHORIZING THE CHAIRMAN TO EXECUTE DOCUMENTS IN SUPPORT OF THE PROJECT. WHEREAS, as evidenced by Resolution 24-137, the City of Key West (hereinafter KW) has requested the Monroe County Comprehensive Plan Land Authority (hereinafter MCLA) provide $10,000,000 to the Housing Authority of the City of Key West (hereinafter KWHA) to develop between 45 and 54 new affordable housing units, known as the Poinciana Housing Project, on land described in Exhibit A, in Key West at Poinciana Plaza (subject property); and WHEREAS, KW has requested $8,000,000 be disbursed upon passage of this resolution and the remaining $2,000,000 be disbursed upon the passage of the FY25 MCLA Budget; and WHEREAS, Section 380.0666(3)(a), Florida Statues, empowers MCLA to utilize tourist impact tax revenue in the KW fund toward the construction of affordable housing in Key West; and WHEREAS, the KWHA has plans to develop between 45 and 54 affordable new housing units for income eligible households whose income does not exceed 160 percent of the Area Median Income in accordance with section 380.0666(3)(a), Florida Statues. The amount of units is to be determined after KWHA seeks development approval from the City of Key West; and WHEREAS, the Land Authority Advisory Committee considered this resolution at a meeting held on September 25, 2024 and voted 5/0 to recommend approval; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1. The above recitals are true and correct and incorporated herein. Section 2. MCLA hereby commits $10,000,000 in FY25 for construction funding for the Subject Property to KWHA. 2758 Section 3. MCLA will disburse $2,000,000 when KWHA receives and provides to the MCLA Executive Director, a written loan commitment from a lender for the entire project cost and a proforma showing the entire project cost, certified by a licensed design engineer or architect. Section 4. MCLA will disburse the remaining $8,000,000 when KWHA provides MLCA with written confirmation from the City of Key West indicating permits are ready for issuance for between 45 and 54 new units. Section 5. Upon acceptance of $2,000,000, the KWHA shall sign and record a Land Use Restriction Agreement (LURA) shown in Exhibit A, restricting use of the subject property to affordable housing in accordance with section 380.0666(3)(a), Florida Statutes in perpetuity. Section 6. The Land Authority Chairman and Executive Director are hereby authorized to execute documents in support of KWHA's funding. Section 7. This resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this day of 12024. Commissioner Craig Cates Vice Chairwoman Michelle Lincoln Commissioner James Scholl Commissioner Holly Raschein Chairman David Rice (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Cynthia Guerra David P. Rice Acting Executive Director Chairman Approved as to form and legality Gregory S. Oropeza, Esquire 2759 EXHIBIT "A" THIS INSTRUMENT PREPARED BY AND RETURN TO: Gregory S.Oropeza,Esq. Oropeza,Stones,&Cardenas,PLLC 221 Simonton Street Key West,FL 33040 LAND USE RESTRICTION AGREEMENT POINCIANA APARTMENTS KEY WEST, FLORIDA PARCEL IDENTIFICATION NUMBERS 00054250-000000 THIS LAND USE RESTRICTION AGREEMENT (hereinafter "Agreement") is made and entered into as of the day of , 2024, between the HOUSING AUTHORITY OF THE CITY OF KEY WEST (hereinafter "Grantor") and the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY,a land authority pursuant to section 380.0663(1), Florida Statutes and Monroe County Ordinance No. 031-1986 (hereinafter "Land Authority"), and their respective successors and assigns. RECITALS A. This Agreement pertains to the real property located on Key West, Florida bearing Parcel Identification Number 00054250-000000 as more particularly described in Exhibit "A" attached hereto and incorporated herein(the "Property"). B. In accordance with Land Authority Resolution No the Land Authority approved financing in the amount of Ten Million and 00/100 Dollars ($10,000,000.00) for the purpose of development of affordable housing on the Property. C. As a condition of extending a loan to Grantor for development of affordable housing on the Property,Grantor has agreed that the Property shall comply with the affordable housing requirements specified herein. NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor and Land Authority do hereby contract and agree as follows: ARTICLE I COMPLIANCE WITH LAND AUTHORITY REOUIREMENTS In order to comply with the Land Authority's requirements pursuant to Section 380.0663(1), et seq., Florida Statutes and Monroe County Ordinance No. 031-1986, Grantor hereby covenants and agrees as follows: Page 1 of 8 2760 1.01 The restrictions contained in this Article I shall not expire, shall run with the Property in perpetuity and shall be binding upon Grantor, its successors, or assigns. 1.02 Use of the Property shall be restricted to the provision of affordable housing for families or households whose income does not exceed 160% of the Area Median Income. Nothing herein shall preclude Monroe County or any other entity providing affordable housing on the Property from setting more restrictive income limits than those imposed by this Agreement. 1.03 The Grantor is responsible for ensuring compliance with the restrictions in this Article I and expressly agrees to furnish, upon the Land Authority's request, written certification thereof. ARTICLE II CONSIDERATION In addition to other purposes, the Land Authority has extended a loan to Grantor for the Property as an inducement to the Grantor to restrict use of the Property to affordable housing in perpetuity. In consideration of said Land Authority extension of a loan for the foregoing purposes, the Grantor and the Land Authority have entered into this Agreement. ARTICLE III RELIANCE In performing its duties hereunder, the Land Authority may rely upon statements and certificates of the Grantor, its tenants, and the residents of the Property believed to be genuine and to have been executed by the proper person or persons, and upon audits of the books and records of Grantor pertaining to occupancy of the Property. ARTICLE IV TERM This Agreement shall become effective upon its execution and delivery and shall remain in full force and effect without expiration,unless modified by mutual written consent of the parties. ARTICLE V ENFORCEMENT If Grantor defaults in the performance of its obligations under this Agreement or breaches any material covenant, agreement or warranty of Grantor set forth in this Agreement, and if such default remains uncured for a period of thirty(30) days after written notice thereof shall have been given by the Land Authority to Grantor, then the Land Authority may take any action at law or in equity or otherwise to address said default(s). However, if the default stated in such notice can be corrected,but not within the thirty (30) day period, and if Grantor adopts a plan to correct or cure the default and commences the correction within the thirty (30) day period (subject to any rights Page 2 of 8 2761 of tenants in possession of units under a valid lease agreement), and thereafter diligently pursues the same to completion within such extended period,the Land Authority shall not have waived its right of enforcement if the default remains uncured after the expiration of the extended cure period. ARTICLE VI RECORDING AND FILING; COVENANTS TO RUN WITH THE LAND 6.01. Upon execution Grantor shall cause this Agreement and all amendments and supplements hereto to be recorded and filed in the official public records of Monroe County and shall pay all fees and charges incurred in connection therewith. 6.02 This Agreement and the covenants contained herein shall run with the land and shall bind, and the benefits shall inure to, respectively, Grantor and Land Authority and their respective successors and assigns during the term of this Agreement. ARTICLE VII GOVERNING LAW This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, with respect to both substantive rights and with respect to procedures and remedies. ARTICLE VIII NOTICE AND EFFECT All notices and other communications to be made or permitted to be made hereunder shall be in writing and shall be delivered to the addresses shown below or to such other addresses that the parties may provide to one another in accordance herewith. Such notices and other communications shall be given by any of the following means: (a)personal service or(b)national express air courier, provided such courier maintains written verification of actual delivery. Any notice or other communication given by the means described in subsection (a) or (b) above shall be deemed effective upon the date of receipt or the date of refusal to accept delivery by the party to whom such notice or other communication has been sent. Land Authority: Monroe County Land Authority 1200 Truman Avenue, Suite 207 Key West, FL 33040 Attention: Executive Director Grantor: Housing Authority of the City of Key West 1400 Kennedy Drive Key West, Florida 33040 Attention: Executive Director Page 3 of 8 2762 Any party may change said address by giving the other parties hereto notice of such change of address in accordance with the foregoing provisions. ARTICLE IX MISCELLANEOUS 9.01. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions shall not in any way be affected or impaired. 9.02. This Agreement may be simultaneously executed in multiple counterparts, all of which shall constitute one and the same instrument and each of which shall be deemed to be an original. Signature Pages Immediately Following Page 4 of 8 2763 COUNTERPART SIGNATURE PAGE TO LAND USE RESTRICTION AGREEMENT IN WITNESS WHEREOF, Grantor and Land Authority have caused this Agreement to be signed, sealed and attested on their behalf by duly authorized representatives, all as of the date first set forth above. WITNESSES: Grantor: HOUSING AUTHORITY OF THE CITY OF KEY WEST, FLORIDA Print: Address: By: Randall Sterling, Executive Director Print: Address: STATE OF FLORIDA COUNTY OF MONROE The foregoing instrument was acknowledged before me by means of physical presence this day of , 2024 by Randy Sterling as Executive Director of the Housing Authority of the City of Key West,Florida. Said person is personally known to me or has produced a valid driver's license as identification. Notary Public; State of Florida Print Name: My Commission Expires: My Commission No.: Page 5 of 8 2764 COUNTERPART SIGNATURE PAGE TO LAND USE RESTRICTION AGREEMENT IN WITNESS WHEREOF, Grantor and Land Authority have caused this Agreement to be signed, sealed and attested on their behalf by duly authorized representatives, all as of the date first set forth above. WITNESSES: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Print: Address: By: David P. Rice, Chairman Print: Address: Address: 1200 Truman Avenue, Suite 207 Key West, FL 33040 Approved as to form and legality [SEAL] Gregory S. Oropeza, Esq. STATE OF FLORIDA COUNTY OF MONROE The foregoing instrument was acknowledged before me by means of physical presence this day of , 2024, by David P. Rice, as Chairman of the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY,a land authority pursuant to section 380.0663(1), Florida Statutes and Monroe County Ordinance No. 031-1986, on behalf of the Land Authority. Said person is personally known to me or has produced a valid driver's license as identification. 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Lr-�r �NA L.PF -lal C;C-ra l.com uNl 5 v. T. sr�o ap oa c, TE:%%/x%/x%%x DRF LE'. 1' 20 CHECKED 91 SHEET 1 OF 2767 r Z 0 O z z S o S m_, m.., CL '^ m [� mmm3 mmm3 r� mmm3 r mmm3 r r, Rv A 40/0 /A/ 5 �� (O� h �y� ae�rvna i I/r�i /�4�//� IltOf lf/A �l/ice ���/ 9 rx �i r Mol \ �w= �wa �s3wa �swa awa - awa Ewa Ewa Ewa � wa J �^ 7 ry gly m m ly ljjjjjjjj fill ✓ — — — — r.� -- � w i in o in co inm " n a. as m � mmm3 LL mmm3 m mmm3 r mmm3 r ON ' Ana r d�� $I a, 1 I ' E r � ilk o , /!/t O / to IM/ Illl ill��f/* ����/ j / �/% i/ r 4�1 tit r 00 �Qa 1 MEMORANDUM Date: June 6,2024 To: Honorable Mayor and Commissioners Via: Albert P. Childress " City Manager From: Tina Housing .... �) munity Development Director Subject. Approval or the Monroe County Comprehensive Plan LandAuthority o Allocate i in the amount of TenMillion Dollars ( ) for the purpose of construction costs for the Key WestHousing Authority Poinciana Housing Project and requesting o Million Eightre o saDollars 2, d ) be allocated for FY 25/26 forte City-owned Homeless ssisa ce Project at Poinciana; pursuant to Section 3 ( )(A), Florida Statues; Authorizing the City Manager to execute all documents consistent ere i o consent of the City Attorney, rovi i or an effective date, Introduction This resolution is to request fimding allocations from the Monroe County Land Authority ( CL,A) for two (2) housing projects to be developed at Poinciana Plaza. The Housing Authority of Key West is constructing 54 units of Work Force Housing units on the property located 3400 Duck Avenue, known as the Poinciana Plaza Housing Complex, and the City of Key West is also requesting funding for 16 units of affordable permanent supportive housing to e constructed on the City owned property located at 301 Duck Avenue. Upon the approval of the Land Authority, the ten million dollars ( 10,000,000.00) requested for the Housing Authority of Key West project shall be allocated as follows: eight million dollars ( ,000,000.00) upon the effective date of the resolution approving the allocation by the Land Authority, and provided that there is at least two million dollars ( 2,000, 00.00) allocated to the City of Ivey West fund in the Y2 /2S MCLA budget, two million dollars ( 2,000,000°00) upon the passage of the F'Y2 /25 MCLA budget. 2770 Additionally, upon the approval of the Land Authority, two million eight hundred thousand dollars ($2,800,000.00), for the City owned housing project located at 3401 Duck Avenue, is requested to be allocated for FY 25/26. Background The Housing Authority of the City of Key West owns the property at 3400 Duck Avenue, commonly known as Poinciana Plaza Community, located in the single-family district. This housing development consists of 153 deed restricted apartments that were part of a surplus housing for the Navy and deeded to the Housing Authority through the Naval Base closure. When the property was transferred to the Housing Authority,it was restricted so that the property and existing units are to be used for affordable housing in perpetuity. The identified area on the property is currently used for overflow parking and unimproved passive recreational use. The original Housing Authority development project was slated to be used for transitional housing for residents of the Lang B. Milan community to avoid displacement while that project is being rebuilt. During recent discussions with the Housing Authority Executive Director, the project has now changed and will no longer be used for those purposes,but instead will create 54 units that will be Work Force Housing units for persons employed in the local economy and not currently housed by Housing Authority residents. The 54 affordable units will consist of 13 units to assist households up to 100% of the Median County Income and another 41unit that can house household up to 120% of the County Median. The project is still pending approval of the BPAS units to initiate the start of the project and will be reviewed by the Planning Board at their June 2024 meeting. The City of Key West owns property at 3400 Duck Avenue, commonly known as Poinciana Plaza, which currently consists of 13 buildings of affordable, permanent, supportive housing. This property was part of surplus housing from the Navy and deeded to the City of Key West, as legally appropriate under the Base Plan / Homeless Assistance submission, which was approved by the Key West Local Redevelopment Agency (LRA) on September 16, 1997. The LRA signed into a Master development / Long Term Lease Agreement with the Housing Authority of the City of Key West to serve as the master developer and Lessee of the Poinciana site. This project will consist of the demolition of existing units and construction of 16 newly constructed units. BPAS units already exist on the property. Procurement Approval of the requested disbursements will reduce the available funds in the Monroe County Land Authority monies that are allocated for the City of Key West. Recommendation Respectfully request the City Commission approve the request to the Monroe County Comprehensive Plan Land Authority to allocate funding in the amount of ten million dollars ($10,000,000.00) for the purpose of construction costs for the Housing Authority of Key West's Poinciana Housing Project and an additional two million eight hundred thousand dollars ($2,800,000.00) in FY 25/26 for the City owned Homeless Assistance Project at Poinciana Plaza; pursuant to Section 380.0666 (3)(A), Florida Statues. 2771 RESOLUTION NO. 24-137 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF KEY WEST, FLORIDA, REQUESTING THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY TO ALLOCATE FUNDING IN THE AMOUNT OF UP TO $10,000,000. 00, FOR THE PURPOSE OF CONSTRUCTION COSTS FOR THE KEY WEST HOUSING AUTHORITY POINCIANA HOUSING PROJECT AND REQUESTING THAT $2,800,000.00 BE ALLOCATED FOR FY 25/26 FOR THE CITY-OWNED HOMELESS ASSISTANCE PROJECT AT POINCIANA; AUTHORIZING THE CITY MANAGER TO EXECUTE NECESSARY DOCUMENTS, UPON CONSENT OF THE CITY ATTORNEY; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City Commission has determined that there exists a shortage of workforce, affordable and special needs housing available in the City of Key West; and WHEREAS, the City finds that Key West Housing Authority Poinciana Housing Project does and will provide essential housing for residents; and WHEREAS, the Monroe County Comprehensive Plan Land Authority (hereinafter referred to as "Land Authority") holds funds on behalf of the City of Key West that may be dedicated to the purchase of land or costs of construction for the purpose of providing workforce housing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF KEY WEST, FLORIDA, AS FOLLOWS: Page 1 of 4 2772 Section 1 : That funds held by the Land Authority are requested for the construction/renovation of housing known as the Poinciana Housing project, more particularly described as : Parcel ID# 00054250-000000 Legal Description: KW FWDN SUB PLAT 2 PB1-189 PT LTS 1 THRU 5 & ALL LTS 6 THRU 12 BLK 17 & LTS 1 THRU 8 & PT LTS 9 THRU 12 BLK 18 & LAND LYING N OF SAID BLKS (21 . 61AC) (A/K/A POINCIANA HOUSING COMPLEX - MISC HOUSING AREA) Gll-147/148 OR1697-84/91E OR1965-971/975AFFD OR1965-912/970Q/C which will contain 54 proposed dwelling units, which property is hereby nominated to the Land Authority for partial funding in the amount of up to ten million dollars ($10, 000, 000 . 00) Section 2 : That upon approval by the Land Authority, the funds contained in Section 1 above shall be allocated as follows: eight million dollars ($8, 000, 000 . 00) upon the effective date of the Resolution approving the allocation by the Land Authority; two million dollars ($2, 000, 000 . 00) upon the passage of the FY24/25 Land Authority budget will be allocated, provided that there is at least two million dollars ($2, 000, 000. 00) allocated to the Key West fund in the FY24/25 Land Authority budget. Section 3 : That upon approval by the Land Authority, two million, eight hundred thousand dollars ($2, 800, 000 . 00) will be Page 2 of 4 2773 allocated to the city-owned housing for FY 2025/2026 for the 16 units at the Poinciana Affordable Permanent Supportive Housing Project more particularly described as: parcel ID# 00064740- 000000; Legal Description: BK 19 LTS 2 THRU 10 AND PT LT 11 AND PT OF LAND LYING N OF SAID BLK KW KW FWDN SUB PLAT 2 PB1-189 ( 6 . 45 AC) (A/K/A POINCIANA HOUSING COMPLEX - HOMELESS HOUSING) Gll- 147/148 OR1655-1771/1845Q/C OR2410-271 OR2410-272/75ESMT as legally appropriate under the Base Reuse Plan/Homeless Assistance Submission that was approved by the Key West Local Redevelopment Agency on September 16, 1997 . Section 4 : That the City Manager is authorized to execute any necessary documents upon review and consent of the City Attorney. Section 5: That this Resolution shall go into effect immediately upon its passage and adoption and authentication by the signature of the presiding officer and the Clerk of the Commission. Page 3 of 4 2774 Passed and adopted by the City Commission at a meeting held this day , 2024 . .�... _t Y of June....................... ............-..—. Authenticated by the Presiding Officer and Clerk of the Commission on 6th.�.. �. day of June...........................�._�W...�...� 2024 . Filed with the Clerk on June 6 2024 . Mayor Teri Johnston No Vice Mayor Sam Kaufman Yes Commissioner Lissette Carey Yes Commissioner Mary Lou Hoover Yes Commissioner Clayton Lopez Yes Commissioner Billy Wardlow Yes Commissioner Jimmy 1,y Yes ' RI JOHNSTO, �; MAYOR r ,r ATTEST: &L KER IB R I EN ....... .T......Y...............�.�.................� ..eeeeee _.. CLERK Page 4 of 4 2775 r �a rxim rm MEMORANDUM Date: June 6,2024 To: Honorable Mayor and Commissioners Via: Albert P.Childress r `' City Managers From: Tina Bum Housing& ommunity Development Director Subject: 24-5991 Approval for the Monroe County Comprehensive Plan Land Authority to Allocate funding in the amount of Ten Million Dollars ($10,000,000.00) for the purpose of construction costs for the Key West Housing Authority Poinciana Housing Project and requesting that Two Million Eight Hundred Thousand Dollars ($2,800,000.00) be allocated for FY 25/26 for the City-owned Homeless Assistance Project at Poinciana; pursuant to Section 380.0666 (3)(A), Florida Statues; Authorizing the City Manager to execute all documents consistent therewith upon consent of the City Attorney,providing for an effective date, Introduction This resolution is to request funding allocations from the Monroe County Land Authority (MCLA) for two (2) housing projects to be developed at Poinciana Plaza. The Housing Authority of Key West is constructing 54 units of Work Force Housing units on the property located 3400 Duck Avenue, known as the Poinciana Plaza Housing Complex, and the City of Key West is also requesting funding for 16 units of affordable permanent supportive housing to be constructed on the City owned property located at 3401 Duck Avenue. Upon the approval of the Land Authority, the ten million dollars ($10,000,000.00) requested for the Housing Authority of Key West project shall be allocated as follows: eight million dollars ($8,000,000.00)upon the effective date of the resolution approving the allocation by the Land Authority, and provided that there is at least two million dollars ($2,000,000.00) allocated to the City of Key West fund in the FY24/25 MCLA budget, two million dollars ($2,000,000.00) upon the passage of the FY24/25 MCLA budget. 2776 Additionally, upon the approval of the Land Authority, two million eight hundred thousand dollars ($2,800,000.00), for the City owned housing project located at 3401 Duck Avenue, is requested to be allocated for FY 25/26. Background The Housing Authority of the City of Key West owns the property at 3400 Duck Avenue, commonly known as Poinciana. Plaza Community, located in the single-family district. This housing development consists of 153 deed restricted apartments that were part of a surplus housing for the Navy and deeded tote Housing Authority through the Naval Base closure. When the property was transferred tote Housing Authority,it was restricted so that the property and existing units are to be used for affordable housing in perpetuity. The identified area on the property is currently used for overflow parking and unimproved passive recreational use. The original Housing Authority development project was slated to be used for transitional housing for residents of the Lang B. Milan community to avoid displacement while that project is being rebuilt. During recent discussions with the Housing Authority Executive Director, the project has now changed and will no longer be used for those purposes,but instead will create 54 units that will be or Force Housing units for persons employed in the local economy and not currently housed by Housing Authority residents. The 54 affordable its will consist of 13 its to assist households up to 100% of the Median County Income and another 4 1 it that can house household up to 120% of the County Median. The project is still pending approval of the BPAS units to initiate the start of the project and will be reviewed by the Planning Board at their June 2024 meeting. The City of Key West owns property at 3400 Duck Avenue, commonly known as Poinciana Plaza, which currently consists of 13 buildings of affordable, permanent, supportive housing. This property was part of surplus housing from the Navy and deeded to the City of Key West, as legally appropriate under the Base Plan / Homeless Assistance submission, which was approved by the Key West Local Redevelopment Agency(LRA) on September 16, 1997. The LRA signed into a Master development / Long Term Lease Agreement with the Housing Authority of the City of Key West to serve as the master developer and Lessee of the Poinciana site. This project will consist of the demolition of existing units and construction of 16 newly constructed units. BPAS units already exist on the property. Procurement Approval of the requested disbursements will reduce the available funds in the Monroe County an Authority monies that are allocated for the City of Key West. Recommendation Respectfully request the City Commission approve the request tote Monroe County Comprehensive Plan Land Authority to allocate funding in the amount of ten million dollars ($10,000,000.00) forte purpose of construction costs for the Housing Authority of Key West's Poinciana Housing Project and an additional two million eight hundred thousand dollars ($2,800,000.00)in FY 25/26 for the City owned Homeless Assistance Project at Poinciana Plaza; pursuant to Section 380.0666 (3)(A), Florida Statues. 2777