SUBJECT/RECOMMENDATION:
Title
Authorize the City of Clearwater Community Redevelopment Agency (CRA) Executive Director to enter into negotiations with Tampa Bay Neighborhood Housing Services to acquire and rehabilitate the mixed-use property owned by the CRA located at 1105 Carlton Street.
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SUMMARY:
October 2023 the CRA purchased property at the southeast corner of North Martin Luther King, Jr. Avenue and Calton Street, in the amount of $350,000 using American Rescue Plan Act fund (ARPA) related funding. Prior to purchase there were two appraisals that were completed, James Millspaugh and Associates, Inc. valued the property at $224,000 and Tobias Realty Advisors, LLC valued the property at $297,000. After the second appraisal was completed, staff conducted an appraisal using more recent sales data and valued the property at $323,400. At the time of purchase, staff and leadership understood that the acquisition price was over market value, according to the appraisals received by the city, however the decision was made to acquire the property in order to stimulate development on the MLK Corridor.
The CRA issued a request for Letters of Interest (LOI) for any interested party to acquire and rehabilitate the mixed-use property located at 1105 Carlton Street. The mixed-use structure is concrete block construction, approximately 2,440 SF and requires significant rehabilitation. The property has a total land area of .08 acres and is zoned Commercial. Preference will be given to proposals that include restoration of the present structure, income restricted rental units, and a mixed-use component.
The CRA received one response to the LOI being the proposal from Tampa Bay Neighborhood Housing Services (TBNHS). The LOI review committee (Committee) read the proposal and evaluated the project budget, a financial strategy, and a plan of redevelopment.
TBNHS is proposing to redevelop 1105 Carlton Street into a small mixed-use project with one ground floor commercial rental space and one apartment rental unit above the commercial space. The 3-bedroom apartment would be approximately 900 square feet and be available to families earning below 80% of the area median income. TBNHS intends to make the rental apartment available to families that participate in the Housing Choice Voucher Program from Clearwater Housing Authority.
The estimated total development costs for the project are $1,345,200. This includes a $144,000 developer fee. The proposed financing structure includes a conventional 1st mortgage from one of TBNHS’ commercial lending partners. TBNHS proposes that the CRA provide a cash flow loan for $350,000. Based on the proposed operating proforma, TBNHS would make annual payments of $8,279. The balance of funds required for the development of this project ($633,000) would be secured by a Land Use Restriction Agreement.
Certain points to be discussed with TBNHS during the negotiations include:
• Terms for the property will be a donation or sale
• Terms for closing conditions
• Terms for the $350,000 in increment funds that TBNHS is requesting
• The CRA’s participation in vetting the business for commercial space on the first floor
This item was presented to the North Greenwood Citizens Advisory Committee. They approved moving forward with bringing this item before the CRA Trustees for approval to negotiate, but asked they there be a term for TBNHS to partner and work with Clearwater Urban Leadership Coalition on their project which is at the adjacent parcel.
Meets North Greenwood CRA Goal for Area Wide Recommended and Use Change and Redevelopment Opportunities by partnering with an organization(s) to redevelopment lots in single family neighborhoods as affordable units.
APPROPRIATION CODE AND AMOUNT: N/A
STRATEGIC PRIORITY:
2.1 Strengthen public-provide intitatives that attract, develop, and retain diversifed busiess sectors.
3.2 Preserce community livablty through responsible development standards, proactive code compliance, and targeted revitalization.
