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Agenda 10/22/2024 Item #16A15 (Approve Collier County Standard Form Long-Term Ground Lease and a Collier County Standard Form Developer Agreement with MHP Collier II, LLC to build affordable housing)10/22/2024 Item # 16.A.15 ID# 2024-1166 Executive Summary *** This item continued from the October 8, 2024, BCC Meeting. *** Recommendation to approve a Collier County Standard Form Long-Term Ground Lease and a Collier County Standard Form Developer Agreement with MHP Collier II, LLC, to build housing that is affordable at 6360 Collier Boulevard in a development known as Ekos on Collier. OBJECTIVE: To increase the supply of housing that is affordable in Collier County CONSIDERATIONS: On May 23, 2023, MHP Collier II, LLC (also known as McDowell Housing Partners) applied for Surtax Funding for a development known as Ekos on Collier. On January 11, 2024, the Infrastructure Surtax Citizen Oversight Committee validated using Surtax funds to purchase the land. On January 23, 2024, the Board of County Commissioners approved the use of surtax funds for the development (agenda item 11B), and after reconsideration, the Board again approved the development on February 27, 2024 (agenda item 10B). The Collier County Standard Form Long-Term Ground Lease ("Lease") is consistent with the Developer Agreement ("Agreement"). Two appraisals support the Property's purchase price of $3,750,000. Notable terms: 1. 99-year term lease of 7.43 acres at 6360 Collier Boulevard. 2. The County will not be required to close on the purchase of the Property until after the Developer receives Site Development Plan (SDP) approval (Collier County to assume purchase contract or purchase from McDowell, depending on timing). 3. The Property will only include the housing development and not any commercial development, public outdoor storage, or public access to Henderson Creek from within the site. 4. McDowell shall cover all closing costs. 5. Construction is to commence after closing on financing and be completed within 24 months thereafter. 6. Ekos Collier will waive pet deposit fees for tenants adopting pets from Collier Domestic Animal Services (DAS). 7. 100% Surety Bond (or equivalent) is required to ensure development completion. 8. $50,000 Penalty buy-out fee due to the County should McDowell choose not to proceed in partnership with the County. 9. McDowell to maintain general liability and property liability insurance of at least $5,000,000 during the entire term of the Ground Lease. 10. Initial income targeting of the 160 residential units is as follows: • Sixteen units (10%) at 30% Area Median Income (AMI). • Eighty units (50%) at 50%AMI. • Sixty-four units (40%) at 80% AMI. FISCAL IMPACT: The recommended long-term ground lease with MHP Collier II, LLC involves 7.43 acres at 6360 Collier Boulevard for a nominal annual rent of $10 (to be deposited in the Affordable Housing Incentive Fund 1075). This project has been validated by the Infrastructure Surtax Citizen Oversight Committee and funding for the county’s purchase of the property is available within the Infrastructure Sales Tax Fund (3018), Workforce Housing Project No. 50267. 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. LEGAL CONSIDERATIONS: The Long-Term Ground Lease will be executed when the County purchases the subject property, per Section 3 of the Developer Agreement. This item has been reviewed by the County Attorney's Office, is Page 1953 of 7162 10/22/2024 Item # 16.A.15 ID# 2024-1166 approved as to form and legality and requires a majority vote for Board action. -DDP RECOMMENDATIONS: To approve a Collier County Standard Form Long-Term Ground Lease and a Collier County Standard Form Developer Agreement with MHP Collier II, LLC, to build housing that is affordable at 6360 Collier Boulevard in a development known as Ekos on Collier. PREPARED BY: Cormac Giblin, Division Director, Housing Policy and Economic Development Division ATTACHMENTS: 1. Ekos Collier Developer Agreement FINAL w-Exhibits 10-01-24 2. 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