SUBJECT/RECOMMENDATION:
Title
Approve the Fourth Amendment (Amendment) to Agreement for Development and Purchase and Sale of Property between the Community Redevelopment Agency of the City of Clearwater (CRA), the City of Clearwater (City), and Archway Clearwater Gardens, LLC (Archway); and authorize the appropriate officials to execute same.
Body
SUMMARY:
Archway Clearwater Gardens, LLC has requested a modified schedule of various milestones in the Agreement for Purchase and Sale of Property, as amended (Agreement), between the CRA, the City and Archway. Archway has been awarded project-based vouchers for this project from the Clearwater Housing Authority. For consistency with the voucher program, Archway is required to complete a subsidy analysis with the United States Department of Housing and Urban Development (HUD). While Archway has submitted all required documentation, the timing of HUD’s response may require a later closing date which will require a shift in other milestones as well.
Clearwater Gardens affordable housing development, located at 1250 Cleveland Street, was selected by Florida Housing Finance Corporation (FHFC) for a 9% Tax Credit award. The project will provide for 52 one-bedroom and 29 two-bedroom units for a total of 81 units. 30 units will be reserved for households earning up to 80% of Area Median Income (AMI) as determined by HUD, 31 units will be reserved for households earning up to 60% AMI, and 20 units will be reserved for households earning up to 30% AMI. Archway is coordinating with the Clearwater Housing Authority to receive 20 project-base vouchers. The developer will continue the operation of the community garden located on the property.
The First Amendment to the Agreement dated February 14, 2022, provided Archway additional time to apply for tax credit funding under multiple Florida Housing Finance Corporation’s housing development programs. The Second Amendment dated September 19, 2022, provided for an additional $3,000,000 loan from the CRA and it increased the City’s local government contribution from $75,000 to $610,000, also in the form of a loan. Other accommodations were made in the Second Amendment assuming Archway would secure 4% tax credit financing, but this did not occur. The Third Amendment extended several milestones in the Agreement.
With the Fourth Amendment, staff is recommending many of the same milestones modified with the Third Amendment to be extended further. Proposed modifications are outlined below. Archway is optimistic that they will achieve the modified milestones in advance of what has been proposed and no further extensions will be necessary.
|
Section |
Category |
Current |
Proposed |
|
4.05(b) |
Building Permits |
3/1/2024 |
6/1/2024 |
|
4.05(c) |
Commence Construction |
4/1/2024 |
7/1/2024 |
|
4.05(d) |
50% Construction Completion |
1/1/2025 |
4/1/2025 |
|
4.05(e) |
100% Construction Completion |
10/1/2025 |
1/1/2026 |
|
4.05(f) |
Begin Pre-Leasing |
8/1/2025 |
11/1/2025 |
|
4.05(g) |
Lease Up Complete |
1/1/2025 |
4/1/2026 |
|
6.10 |
Closing Date |
3/15/2024 |
6/15/2024 |
|
7.02(a) |
Commence Construction |
4/1/2024 |
7/1/2024 |
|
7.02(b) |
Commence Vertical Construction |
10/1/24 |
1/1/2025 |
The City is a party to the agreement only as it relates to sections 3.07 and 15.18 of the Agreement. Section 3.07 of the Agreement required Archway to grant and deliver to the City, its heirs, successors, licensees, or assigns, a perpetual exclusive easement over the area existing as a community garden, solely for use as a community garden. The Amendment requires Archway to execute a declaration of restrictive covenant, instead of a perpetual easement, restricting the use to a community garden for the benefit, use, and enjoyment of the public. This change eliminates the need for the City to procure, manage, or contract with future operators and users of the community garden. Archway will take on this responsibility. Section 15.18 commits the City to a contribution of $610,000 to the project in the form of a deferred loan. This amount is considered the Local Government Areas of Opportunity funding commitment and is required for a project application to receive the maximum amount of basis points. Section 15.18 is not affected by the amendment.
APPROPRIATION CODE AND AMOUNT:
Funds are available and allocated in R2010 Housing- County
STRATEGIC PRIORITY:
