CITY OF ORLANDO
COUNCIL AGENDA ITEM


Items Types:
Hearings
For Meeting of:
February 29, 2016
District: 5 From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No

Subject:
Disposition of Lakeside Village and Bordeaux I & II Apartment Complexes to Ability Mercy, LLC. for redevelopment

Summary:

Pursuant to Chapter 13, Section 7 of the Charter of the City of Orlando, notice was given in the Orlando Sentinel regarding this hearing concerning the proposed disposition by the City of Orlando of Lakeside Village and Bordeaux I & II Apartment complexes located at 1740, 1742, and 1770 Mercy Drive.  See attached Location Map.

FNMA foreclosed and took control of the properties in 2013.  The properties remained unrentable, vacant, and boarded up in varying degrees of uninhabitable condition.  In an effort to alleviate the unprecedented blight in the neighborhood, the City purchased the three apartment complexes from FNMA in 2015 for a negotiated price of $2,627,253.   The three properties were appraised as improved for a total of $2,539,000 with a land value of $1,270,000.  The apartment buildings were in need of considerable attention to deferred maintenance, repairs, upgrades, rehabilitation, replacements, and likely demolition.  

In the summer of 2015, the City solicited proposals from parties interested in redeveloping the properties. Goals included increasing the inventory of safe, affordable housing to serve low and moderate income households; increasing the inventory of permanent supportive housing; and to foster community development that will enhance the surrounding neighborhoods.  Ability Housing "Ability" submitted a proposal that matches the City's goals.  The attached Purchase and Sale Agreement is for acquisition and redevelopment of the property and the price is proposed to be for no less than the underlying land value of $1,270,000.  Ability intends to finance the project with equity from a Low Income Housing Tax Credit allocation that, due to restrictions, limits the purchase price to the value of the land.   

Ability will be responsible for all maintenance, security, insurance, and utilities within 30 days after the effective date of the contract.  Ability will have a 180 day due diligence period, after which time they will continue to be responsible for all maintenance, security, insurance, and utilities. 


Fiscal & Efficiency Data: See attached Fiscal Impact Statement.

Recommended Action:
Approval of Purchase and Sale Agreement in substantially the form attached; authorize the City's Real Estate Manager to execute the Agreement and to execute any extensions of the closing date for the Agreement that may be necessary; and all related closing documents; and authorize the Mayor/Pro Tem and City Clerk to execute a deed; all subject to review and approval by the City Attorney's Office.


Agenda Item attachment(s) on file in the City Clerks Office.

Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.

Contact: Laurie Botts, Wes Powell
Approved By:

Department Date and Time
Budget Outside Routing Approval 2/19/2016 3:21 PM
City Clerk 2/19/2016 4:10 PM

ATTACHMENTS:
Name: Description: Type:
Lakeside_Village_And_Bordeaux_I_and_II_Location_Map.pdf Location Map Backup Material
Purchase_and_Sale_Agreement_02_19_2016.doc Purchase And Sale Agreement Backup Material
Fiscal_Impact_Statement_Mercy_Ability_LLC.doc Fiscal Impact Statement Backup Material

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