Submitted By: Marie Mesadieu
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Presentation By: Aubrey Hale
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve a First Amendment to City Redevelopment Agreement for D&S Development, LLC (GRM/210512) to construct affordable housing units on properties located in the West Ocala Community Redevelopment Area subarea
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND: In September 2021, the City of Ocala (City) issued a notice of intent to dispose of public properties within its West Ocala Community Redevelopment Agency (CRA) Subarea. D&S Development, LLC (Developer) was selected as the qualified residential developer to purchase property and construct affordable housing. On August 15, 2023, the City entered into a Redevelopment Agreement with the Developer.
D&S Development, LLC is required to invest approximately $559,695 to construct four single-family houses and one duplex apartment on five parcels located in the West Ocala CRA subarea. The attached original Redevelopment Agreement sets out the requirements of D&S Development, LLC, and will ensure that the properties are developed in compliance with applicable zoning and land development standards. The maximum time for construction will be 18 months. Upon completion, all six units must remain affordable per Sec. 106-102 of the City of Ocala Land Development Code. If desired, D&S Development can apply for incentives from the Affordable Housing Incentive fund which can offset costs for building permits and impact fees, sidewalks, and more.
The total appraised value of all five parcels is approximately $41,174. During the negotiation process, D&S and the City agreed on a purchase price of $7,000 for all parcels. The City will make a property donation valued at $34,174 as an incentive. A Purchase and Sale contract will be processed to convey the properties through a special warranty deed after the inspection period is completed.
FINDINGS AND CONCLUSIONS: The Original Agreement contained certain deadlines for property closing and commencing development activities. The proposed amendment is required due to title issues identified for one of the five parcels; at the end of the inspection period, the issues were still unresolved. The Parties now desire to amend the Original Agreement to allow the closing of each parcel individually and revise the schedule for Developer and City obligations.
The proposed amendment to the Original Agreement provides for a new closing date tied to the effective date of the first amendment. The closing date may be extended for up to one month at the option of the Developer upon written notice to the City, without the necessity of amending this Agreement. The City and Developer propose to close each parcel as they become ready and available to close. The option to extend the closing date without subsequent amendments is contingent upon no faults from either party of the agreement.
Staff recommends approval of the amendment to proceed with the redevelopment project.
FISCAL IMPACT: The revenue generated from the sale of the properties will be added to the Affordable Housing Incentive Fund account (001-345-000-000-02-34105) to support future affordable housing initiatives.
PROCUREMENT REVIEW: N/A
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