SUBJECT/RECOMMENDATION:
Title
Provide a recommendation to the City Council regarding the proposed disposition and development of City-owned property located at 1532 Smallwood Circle.
Body
SUMMARY:
The City of Clearwater released a Request for Letters of Interest (LOI) seeking proposals for the development of the City-owned property located at 1532 Smallwood Circle, Clearwater, Florida 33755 (Parcel ID No. 11-29-15-31194-000-0990).
The City received one response, submitted by C.I.M.H.Z Management LLC, proposing to develop the property with a new single-family home to be sold to an income-qualified buyer earning no more than 120% of the Area Median Income (AMI).
The purpose of this agenda item is for the Neighborhood and Affordable Housing Advisory Board to review the proposal and provide a recommendation to City Council regarding whether the City should proceed with negotiations and disposition of the property to the respondent.
PROPOSAL SUMMARY: C.I.M.H.Z Management LLC proposes to construct an approximately 1,350-square-foot single-family home. The proposed design includes a first-floor garage, storage area and open patio, with the primary living area located on the second floor. Upon completion, the home would be sold exclusively to an income-qualified household earning no more than 120% AMI.
The respondent estimates the total development cost at approximately $244,000 to $260,000, including design, site preparation and utilities, construction, mechanical systems, interior finishes, appliances, permits, insurance, landscaping and other soft costs.
The respondent states that it intends to finance 100% of the development using its own funds, without outside financing. The proposal anticipates submitting permit applications within 30 to 45 days following acquisition of the property and completing construction within 12 months of the transfer of the property.
The respondent is requesting that the City donate the property for the development. According to the LOI, the donation of the land would assist in reducing the overall development cost and support the sale of the completed home to an income-qualified buyer.
PROPOSED CONTRACT REQUIREMENTS: Should the NAHAB recommend proceeding and City Council subsequently approve the disposition, staff anticipates negotiating an agreement that includes appropriate performance requirements and protections for the City. At a minimum, the agreement would include:
A requirement that the developer provide satisfactory proof of funds prior to closing demonstrating the financial capacity to complete the proposed development;
A requirement that the developer complete construction of the proposed home within 12 months of the transfer/closing of the property;
A requirement that the completed home be sold to an income-qualified household at or below 120% AMI, consistent with the proposal; and
Appropriate contractual remedies and/or reversion provisions should the developer fail to meet the required development timeline or other material requirements of the agreement.
The NAHAB is requested to review the Letter of Interest submitted by C.I.M.H.Z Management LLC and provide a recommendation to City Council as to whether the City should proceed with the proposed disposition and development of 1532 Smallwood Circle, subject to successful negotiation of an agreement containing the City's required development conditions and protections.
APPROPRIATION CODE AND AMOUNT:
N/A
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.
