SUBJECT/RECOMMENDATION:
Title
Provide recommendation on proposal received by Tampa Bay Neighborhood Housing Services in response to the LOI # 10-25
Body
SUMMARY:
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.
Staff is looking for a recommendation from the North Greenwood Citizen Advisory Committee to bring forward to the CRA Trustees an agenda item to authorize the CRA executive Director to enter into negotiations with TBNHS.
STRATEGIC PRIORITY:
2.1 Strengthen public-private initiatives that attract, develop, and retain diversified business sectors.
3.2 Preserve community livability through responsible development standards, proactive code compliance, and targeted revitalization.
