Submitted By: James Haynes
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Presentation By: James Haynes
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Department: Community Development Services
STAFF RECOMMENDATION (Motion Ready):
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Approve an Affordable Housing Agreement with Next Dimension Builders to construct and sell an affordable housing unit on surplus property (parcel number 2260-149-015) located in West Ocala
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place
PROOF OF PUBLICATION:
Made available to the public on August 29, 2024
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BACKGROUND:
In April 2023, at its annual strategic planning session, Ocala’s City Council established addressing the affordable housing shortage as one of its major strategic initiatives. In response to this initiative, City staff formed an Affordable Housing Initiative Team to develop ideas and implement strategies to engage for-profit and not-for-profit developers in developing single-family and multi-family affordable housing projects. The initial “surplus lots” list was established, and an infill strategy was initiated to build single-family structures on scattered sites.
By and through Resolution 2023-40, adopted by City Council on September 19, 2023, the City currently holds an inventory of vacant lots located throughout the city it intends to offer for sale to qualified for-profit and non-profit developers, builders, partnerships, and/or agencies to develop and construct new affordable housing units.
FINDINGS AND CONCLUSIONS:
• On August 29, 2024, the City’s Procurement Department issued an Invitation to Negotiate (ITN) # GRM/240228. The solicitation invited the submission of proposals from qualified residential builders to purchase parcel number 2260-149-015 and construct an affordable housing unit.
• The ITN closed on September 30, 2024. One proposal was received from Next Dimension Builders (Next Dimension) of Summerfield, FL.
• On October 30, 2024, the proposal from Next Dimension was deemed responsive by the City’s Procurement Department. The proposal made by Next Dimension included plans for three of the available solicitations at the time.
• The Selection Committee met on or about November 7, 2024, to review the proposal. During the review, it was determined that the submitted proposal would only fit one of the three parcels bid on by Next Dimension. The Committee instructed the developer to resubmit proposals that would fit each of the three parcels.
• On January 22, 205, the City’s Procurement Department received Next Dimension’s resubmittal.
• On February 4, 2025, the Selection Committee met with Next Dimension. The developer made a 10-minute presentation to the Committee and afterward fielded questions from the Committee concerning the project.
• On February 5, 2025, the Committee was informed that the project was scored for approval and that the developer would be contacted to begin negotiations.
• Next Dimension will build a 1,009 SF two-bedroom, two-bathroom, one-car garage unit on lot 2260-149-015 with a targeted sales price of $180,000.
• The City will provide Next Dimension with a City Incentive of $3,255 in the form of a property donation. This amount represents the fair market value of the property ($4,760) less the monetary portion of the purchase price ($1,505).
• The attached agreement outlines the requirements and deadlines for Next Dimension and the City and the City’s right of reverter.
Staff recommends the approval of the affordable housing agreement and the sale of 2260-149-015 to Next Dimension for the assessed value of $1,505 to construct an affordable housing unit for a family unit whose annual household income does not exceed 120 percent of the Marion County Area Median Income (AMI).
FISCAL IMPACT:
The $1,505 generated from the property sale will be added to the Affordable Housing Incentive account (112-345-000-000-02-34105) to support future affordable housing initiatives. This property will also be added back to the tax roll and connected to City electric, water, and sewer services.
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny