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Summary:
The majority of the development site (Site) was acquired by the City of Orlando in 2004 for the purpose of eliminating slum and blight and stimulating redevelopment in the surrounding area through the provision of housing. In late 2015, the City and CRA issued a solicitation inviting proposals to redevelop the Site into housing. On May 9, 2016, City Council and the CRA approved the ranking of the proposals and authorized negotiation of a contract for sale and purchase (Contracts) and development agreement (Agreement) with top-ranked InVictus Development, Inc (“InVictus”). The Contracts and Agreement provide the terms for InVictus’s acquisition of the Site and subsequent development thereof into approximately 211 residential units, with 120 units in Phase 1 and 91 units in phase 2 (Project). Seventy-five percent of the units are being dedicated as affordable, twenty percent as market rate and five percent as permanent supportive housing. The Contracts provide for the CRA and City to convey the Site to InVictus at a price of $1.74 per square foot, or approximately $474,143 total, which is less than the appraised value. Although disposition of the Site is at less than fair value, this Project will provide long-term benefits to the City and CRA contemplated within the Downtown Orlando Community Redevelopment Area Plan (Plan) of providing affordable housing, thereby strengthening the residential fabric in the Parramore community, and construction of a catalytic project for the Parramore community, all further aiding in preventing the spread of slum and blight and furthering the intent of the Plan and the Community Redevelopment Act. In addition, the Site will be conveyed with use restrictions (25% affordable housing and 5% permanent supportive housing set-asides) and a prohibition of the sale, lease or transfer of the Site without the prior written consent of the City and CRA until construction of all improvements is completed. The Development Agreement contemplates the provision of up to $648,000 in an affordable housing incentive for Phase I of the Project and requires commencement of development of Phase 1 within 6 months of obtaining construction financing, which is anticipated to include Low Income Housing Tax Credits obtained through Florida Housing Finance Corporation (FHFC), and completion of construction within 18 months after commencement. |
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Fiscal & Efficiency Data:
None.
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Recommended Action:
Approval of the disposition of the Site to be developed by InVictus Development, LLC pursuant to the Development Agreement and the Purchase and Sale Agreements; approval of the Development Agreement and Purchase and Sale Agreements for Phase I and II between the City of Orlando, Community Redevelopment Agency and InVictus Development, LLC, in substantially the form attached hereto, all subject to review and approval of the City Attorney’s office; authorization for the Real Estate Division Manager to execute the Purchase and Sale Agreements (Phase 1 and 2) and other related closing documents and extend the time frames referenced therein, the Mayor/Pro Tem and City Clerk to execute the the deed(s) and Development Agreement and other related closing documents, and authorization for the Mayor to sign the FHFC contribution grant form and any other necessary documents acknowledging the grant amount contemplated by the Development Agreement. |
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Agenda Item attachment(s) on file in the City Clerks Office.
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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.
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Contact:
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Approved By:
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Department
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Date and Time
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| Budget Outside Routing Approval |
12/2/2016 11:51 AM |
| Real Estate and Finance Attorney |
12/2/2016 10:09 AM |
| Budget Outside Routing Approval |
12/2/2016 11:51 AM |
| City Clerk |
12/2/2016 12:29 PM |
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