SUBJECT/RECOMMENDATION:
Title
Provide recommendation for Negotiation and Funding Request 1105 Carlton Street, Reuse Project
Body
SUMMARY:
In October 2023, the Community Redevelopment Agency purchased the property located at the southeast corner of North Martin Luther King, Jr. Avenue and Carlton Street for $350,000 using American Rescue Plan Act funds. Although the purchase price exceeded independent appraisals, the acquisition was made as a strategic investment to encourage redevelopment along the Martin Luther King, Jr. Avenue Corridor.
Following the purchase, the CRA issued a Request for Letters of Interest seeking proposals to acquire and rehabilitate the mixed-use structure at 1105 Carlton Street-a 2,440-square-foot commercial building in need of significant rehabilitation. Preference was given to proposals that would preserve the existing structure, incorporate a mixed-use component, and include income-restricted residential units.
The CRA received one response, submitted by Tampa Bay Neighborhood Housing Services (TBNHS). The CRA has budgeted $500,000 for this project. Council previously approved staff to negotiate with TBNHS, and after a review and revision period, TBNHS submitted an updated development package (attached).
Because the City intends to utilize HOME Program funds to support this project, the maximum federal subsidy allowable is $468,348 for two units. This limitation would require the CRA to contribute an estimated $701,852 in local funding to complete the development.
Given the potential catalytic impact of this project on the surrounding community and the increase in funding request beyond the originally budgeted amount, staff is requesting guidance from the Advisory Board on how to proceed. Specifically, staff seeks direction on whether to:
Support the project with the revised funding structure; or
Recommend an alternate level of CRA participation if the current funding request is deemed unacceptable.
Staff recommends that the Advisory Board review the proposal and provide a recommendation regarding the CRA’s level of financial participation and negotiation terms with TBNHS
STRATEGIC PRIORITY:
3.2 Preserve community livability through responsible development standards, proactive code compliance, and targeted revitalization.
