SUBJECT/RECOMMENDATION:
Title
Approve the Second Amendment to Contract for Sale of City-Owned Vacant Land between the City of Clearwater and Habitat for Humanity of Pinellas County, Inc./Clearwater Neighborhood Housing Services, Inc. for real property located at 1454 South Martin Luther King Jr. Avenue and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City of Clearwater posted RFP/Q #43-22 as an opportunity for a developer to acquire and develop city-owned property located at 1454 South Martin Luther King Jr. Avenue for use as affordable and workforce housing (Pinellas County Property I.D. #22-29-15-00000-320-1300). On December 1, 2022, Council authorized staff to negotiate a contract for the sale of real property to Habitat for Humanity of Pinellas County, Inc. and Clearwater Neighborhood Housing Services, Inc., together, as the selected Developer of the real property located at 1454 South Martin Luther King Jr. Avenue. On June 13, 2023, Council approved a contract for sale of city-owned vacant land.
Per the contract, the development shall be consistent with Buyer’s response to City of Clearwater RFP/Q 43-22. The Buyer shall construct 24 units of mixed-income, owner-occupied townhomes with 50% of the units reserved for households with total household income up to 80% of the Area Median Income (AMI) as determined by the United States Department of Housing and Urban Development, and the remaining 50% will be reserved for household with total household income up to 120% of AMI.
The Buyers response to RFP 43-22 identified a $1,240,170 cash gap in addition to the requested donation of the property, therefore Exhibit B of the contract specifies the City agrees to commit to the donation of the parcel, valued at $525,000 and a contribution of an additional $357,585 for a total direct subsidy of $882,585 (half of the total direct subsidy identified as required in the response). The Buyer will seek funding from Pinellas County for the remaining gap (presumably $882,585).
Additional requirements provided by Exhibit B establishes terms and conditions that Buyer must meet prior to and after closing. Per the exhibit, all pre-development activities must be completed prior to closing including, but not limited to, funding commitments, site approval and building permits.
Unforeseen development challenges had pushed the original proposed timeline and required a contract closing date extension to December 31, 2024. Due to Hurricane Helene and Hurricane Milton, the Buyer has not procured funding approval from Pinellas County, which is a requirement for closing. The Buyer has informed city staff that their request will be presented to the Pinellas County Board of County Commissioners in January 2025. The Buyer has requested an extension to on or before April 30, 2025. Staff recommends an extension of the amended contract’s closing date to on or before April 30, 2025, to allow the Buyer more time to complete the pre-development activities indicated in Exhibit B of the Contract.
APPROPRIATION CODE AND AMOUNT:
Funding is to be provided by State Housing Initiatives Partnership (SHIP) Program and Revenue Recovery Funds provided by the American Rescue Plan Act - Local Fiscal Recovery Funds. No General Fund monies will be appropriated.
USE OF RESERVE FUNDS:
N/A
STRATEGIC PRIORITY:
Objective 2.4 - Supports equitable housing programs that promote household stability and reduces the incidence of Homelessness within Clearwater.
