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Agenda 10/22/2019 Item #11I (Bembridge PUD Affordable Housing Developer Agreement)10/22/2019 EXECUTIVE SUMMARY Recommendation to approve a developer agreement with McDowell Housing Partners, LLC, for Invitation to Negotiate No. 19-7556, “Bembridge PUD Affordable Housing Land Development”. (No Fiscal Impact) OBJECTIVE: To increase the supply of housing that is affordable by making available surplus Collier County-owned land for the development of housing. CONSIDERATIONS: On February 6, 2019, the Procurement Services Division issued a notice of Invitation to Negotiate (ITN) No. 19-7556 “Bembridge PUD Affordable Housing Land Development.” The County notified 23,864 firms, 114 firms downloaded the bid information and staff received eight (8) proposals by the April 10, 2019 submission deadline. Staff found all the following eight (8) firms to be responsive and responsible. On June 12, 2019, the Selection Committee reconvened for the oral presentations and arrived at the below listed final recommended ranking. Company Name Final Ranking McDowell Housing Partners, LLC 1 JHM/RHD Naples, LLC 2 Habitat for Humanity of Collier County, Inc. 3 On July 9, 2019, each of the three (3) firms made a presentation to the Board of County Commissioners (Board) and the Board directed staff to begin negotiations with the top -ranked firm (McDowell Housing Partners, LLC), in order to bring back a developer agreement for Board approval. McDowell Housing Partners, LLC has developed, owned and operated over 45,000 apartment units across the Country and 2,000 units in Florida since 2004; the majority are workforce and affordable housing. McDowell proposes an 82-unit rental development serving clients with incomes between 30%-80% AMI ($25,750-$62,650 for a family of four (4)). The apartment buildings will be three (3) stories and contain amenities such as a pool, clubhouse, shuffleboard, and playground. McDowell has additionally agreed to a minimum 10% set aside for seniors, veterans, and/or special needs population. The developer will seek funding as a 9% or 4% tax credit project, using State of Florida SAIL funds, a nd has been successful in securing sixteen (16) deals in the past with Florida Housing Finance Corporation, six (6) for SAIL funding. McDowell is a Select Sponsor with Freddie Mac, a coveted designation identifying firms with effective housing financing strategies. As a prerequisite for funding applications, the County executed a Long-Term Ground Lease with McDowell Housing Partners, LLC for the Bembridge parcel on August 13, 2019, and was ratified by the Board on September 10, 2019. Funding and land use restrictions will also ensure the long-term affordability of the units. The Long-Term Ground Lease as referenced in the development agreement contains the following schedule of milestones: 11.I Packet Pg. 844 10/22/2019 Milestone Deadline Secure Project Funding Allocation Up to 24 Months from Effective date of Developer Agreement Commence Building Construction Up to 24 Months from Funding Allocation Complete Construction Up to 30 Months from Commencement of Construction This agreement contains an Early Termination clause allowing the County to replace the developer should the developer fail to proceed toward project completion in good faith. A performance bond is required to be posed by Developer. Before exercising early termination County is required to give Developer an opportunity to cure. Staff is recommending approval of the developer agreement awarding Invitation to Negotiate No. 19 - 7556 to McDowell Housing Partners, LLC. FISCAL IMPACT: The Bembridge PUD has been declared surplus property by the Board. This developer agreement requires no additional funding from Collier County. On Sept 12, 2000 agenda item 16.F.2., the Board approved the purchase of 7 acres in the Bembridge PUD for $565,479 (includes closing costs) using EMS Impact Fees (closing was on April 19, 2001); EMS Station #19 was subsequently constructed on 1.89 acres. On December 2001, the Transportation Division purchased approx. 6 acres just north of the EMS’s property, within the Bembridge PUD. In 2002, Transportation traded properties (non-cash transaction) with EMS to construct a stormwater lake for the Santa Barbara Road expansion. The Board has now declared this as surplus property and it is being repurposed to a non-EMS use. Since EMS Impact Fees can only be used for growth related EMS needs, the EMS Impact Fee Fund (350) needs to be reimbursed for that portion of the land that is now planned for Affordable Housing and a future pumping station for Public Utilities. 7.00 acres - Original purchase was for 7 acres for $565,479 ($80,782.71/acre). (1.89 acres) - EMS station #19 5.11 acres - Remaining 0.00 acres - Transportation property (north) was traded with the EMS property (south) 1.33 acres - Future pumping station (PUD to reimburse EMS - a separate item on this agenda) 3.78 acres - Re-purposed for Affordable Housing General Fund will reimburse the EMS Impact Fee Fund $305,358.64 ($80,782.71 x 3.78 acres) plus interest ($65,431.36) from April 2001 to Sept 2007. Starting in FY 2007, the General Fund (001) and the County Wide Capital Projects Fund (301) have loaned the EMS Impact Fee Fund $8.3 million to help pay debt service payments and to also assist in the construction of new EMS stations and ambulances. Had the EMS Impact Fee never purchased this land, it would have had enough cash in 2007 to pay debt and purchase an ambulance. The loans from 001 and 301 are interest free therefore no interest will be calculated on the $305,358.64 reimbursement from Oct 2007 through today. A budget amendment is needed reducing General Fund reserves in t he amount of $370,790 to reimburse the EMS impact fee fund (350) for the cost of the property (3.78 acres) plus interest. LEGAL CONSIDERATIONS: This Item is approved for form and legality and requires a majority vote for Board approval. - JAB GROWTH MANAGEMENT IMPACT: Providing land for the development of housing that is affordable assists the County in addressing some of the goals and objectives of the Housing Element in the Growth Management Plan. 11.I Packet Pg. 845 10/22/2019 RECOMMENDATION: To approve a developer agreement with McDowell Housing Partners, LLC, for Invitation to Negotiate No. 19-7556, “Bembridge PUD Affordable Housing Land Development” and authorize the necessary budget amendment. Prepared By: Cormac Giblin, Housing, Grant Development, and Operations Manager. Commu nity and Human Services Division ATTACHMENT(S) 1. Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (PDF) 11.I Packet Pg. 846 10/22/2019 COLLIER COUNTY Board of County Commissioners Item Number: 11.I Doc ID: 10343 Item Summary: Recommendation to approve a developer agreement with McDowell Housing Partners, LLC, for Invitation to Negotiate No. 19-7556, “Bembridge PUD Affordable Housing Land Development”. (Cormac Giblin, Community and Human Services Manager) Meeting Date: 10/22/2019 Prepared by: Title: – Community & Human Services Name: Cormac Giblin 09/27/2019 4:06 PM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 09/27/2019 4:06 PM Approved By: Review: Community & Human Services Maggie Lopez Additional Reviewer Completed 10/01/2019 1:20 PM Procurement Services Opal Vann Level 1 Purchasing Gatekeeper Completed 10/09/2019 9:38 AM Community & Human Services Kristi Sonntag CHS Review Completed 10/09/2019 11:54 AM Public Services Department Kimberley Grant Level 1 Reviewer Completed 10/09/2019 4:23 PM Procurement Services Ted Coyman Additional Reviewer Completed 10/09/2019 4:55 PM Procurement Services Evelyn Colon Additional Reviewer Completed 10/10/2019 8:49 AM Public Services Department Todd Henry Level 1 Division Reviewer Completed 10/10/2019 9:56 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 10/10/2019 10:49 AM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 10/10/2019 2:09 PM Office of Management and Budget Laura Wells Level 3 OMB Gatekeeper Review Completed 10/10/2019 2:51 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 10/11/2019 10:08 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 10/14/2019 9:39 AM Budget and Management Office Mark Isackson Additional Reviewer Completed 10/14/2019 11:23 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 10/14/2019 11:33 AM Board of County Commissioners MaryJo Brock Meeting Pending 10/22/2019 9:00 AM 11.I Packet Pg. 847 11.I.1Packet Pg. 848Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 849Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 850Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 851Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 852Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 853Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 854Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1 Packet Pg. 855 Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 856Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 857Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 858Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 859Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 860Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 861Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 862Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 863Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 864Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 865Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 866Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 867Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 868Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 869Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 870Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement) 11.I.1Packet Pg. 871Attachment: Signed CAO APPROVED BEMBRIDGE AGREEMENT FINAL 100909-0832 (10343 : Bembridge Developer Agreement)