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HomeMy WebLinkAbout02282003 1225 Main Street [] Sebastian, Florida 32958 Telephone (772) 589-5330 El Fax (772) 589-5570 City Council Information Letter February 28, 2003 TRIAD Multiple Family Housing Development Proposal Several days ago, my office and various interdepartmental staff members hosted a telephone conference with representatives from TRIAD Housing Partners relative to potential benefits of initiating an affordable multiple family housing development in the Louisiana Avenue Area of Sebastian. An initial concern regarding this proposal was the issue of direct egress and ingress into the property and the necessity to appropriately facilitate traffic flow dynamics that would result (i.e. Louisiana Avenue is not anticipated to be improved to accommodate such an increase in traffic). This issue is potentially resolvable via incorporating the construction and extension of Powerline Road into the site plan for what will be known as Pelican Isles Apartments. Representatives from TRIAD agreed to making this adjustment to their proposal, as they will offer a second presentation to you during your March 12th meeting respectively. In addition, the attached correspondence was delivered by TRIAD, per my request, in an effort to address some of your inquiries raised during your February 12th session (i.e. anticipated revenue stream to the City, etc.). As the application to the Florida Housing Finance Corporation is not due in Tallahassee until April, the City Council has a few weeks to offer direction regarding this proposal. Request for Proposal Solicitation Process Commercial/Industrial Development Marketinq As efforts to implement projects and programs governed in the Sebastian Municipal Airport Master Plan are well underway, please be advised that administration is currently working to initiate a Request for Proposal process to solicit interests from various economic development-marketing firms to recruit commercial and industrial tenants to SMA. As referenced in the plan, approximately 140+ ares will become available for development after City Council Information Letter February 28, 2003 Page 2 Runway 9-27 reopens. Positive impacts from such an arrangement will also help sustain economic self-sufficiency of SMA operations and futures improvements, as well as greater long-term financial stability of the respective enterprise fund. In addition, as the City of Sebastian will continue to enjoy substantive residential growth as a result of its current build out status, applicable marketing efforts may also assist opportunities in other commercial and industrially zoned areas of the community, most notably Sebastian Boulevard (including areas in the anticipated expanded Community Redevelopment Agency) and United States Highway One. As such, respective recommendations will soon be offered publicly. Pelican Island Centennial Celebration Program of Events As staff from the City of Sebastian, the Sebastian River Area Chamber of Commerce and the United States Fish and Wildlife Services are all working diligently to ensure a successful Pelican Island Centennial Celebration during the weekend of March 14th, I wish to provide each of you with an advanced copy of the official event program as delivered to my office earlier this week. As referenced on one of the attached maps at the end of the document, stages and exhibit booths will all be positioned in both Riverview Park and in recently acquired property currently being developed for additional recreational use. In addition, as a tremendous number of people are expected to visit our community during this weekend, arrangements have been made to offer public parking at Sebastian Municipal Airport, with transport shuttle services being provided via partnership with the School District of Indian River County. Other details regarding preparation and security may change within a few days prior to the celebration, as federal officials are expected to provide updates relative to the possibility of key dignitaries joining the celebration. I will therefore be able to update you relative to any necessary adjustments during week of March 10th. National League of Cities Conference As most of you will be attending this year's National League of Cities Conference, I will not deliver an information letter next week. In addition to the immense educational and networking opportunities you will enjoy as a result of attending this session, each of you should be able to also have fun via other opportunities available during the conference. Have a great time and please have a safe trip! Enclosure(s): Correspondence from TRIAD; Pelican Island Celebration Program of Events My Documents/InfoLetter167 'TiE I A D ~E)IN~ PARTNERS February 14, 2003 Mr. terrence Moore, City Manager City of Sebasti an 1225 Main Street Sebastian, FL 32958 Re: Pelican IsiesApartment& Louisiana Avenue, Sebastian, FL Dear Mr. Moore: I appreciate your taking the time to schedule me in front of the City Commission the other night. I was very pleased to hear detailed and intuitive questions form the Mayor and Commissioners. I would like to take an opportunity to provide you with an analysis that we have performed with regard to the revenue stream generated by our development. I have assumed, for this analysis that the option to defer the entire Recreational Impact Fee for a period of 11 years is chosen by the City. During that 11 year period., the deferred fee will bear an intere~ rate of 0%. At that time, the entire deferred I~npact fee amount ($148,200) would be paid to the City. As mentioned in my prior letter, to guarantee the City's receipt of the deferred Impact Fee, we would agree to place the entire Impact Fee in escrow prior to the issuance of building permits. That way, there can be no issue as to whether the fee will be paid at the expiration of the deferral period. The enclosed analysis does not include the payment 0f building permit fees or any other permit fee that we will pay at the time of building permit. As you can see, the total projected real estate taxes, based upon the current millage rate of the County and the City's portion of that millage rate (as provided to me by the Indian River County Tax Assessors Office) over the entire deferral period are $271,580. As l previously described, the unit mix within our development is planned as shown below. As a result of the feedback that we received from the City Comission, we are redesigning our plan to incorporate tennis and shuffleboard courts and some additional ground-floor 'senior' accessible units types. We are working on that final plan and will make certain that it caters to all populationswhile providing a certain benefits to the Sebastian senior population. U nit Type Size Quantity 1 BR/1 BA 762 32 2 BR/2 BA 1,065 80 3BR/2BA 1,277 40 One Oakwood Boulevard, Suite 195, Hollywood, Florida 33020 (954) 929-7157, (954) 922-5414 Recreation Year Value ~ 10 Cap R.E. Taxes *lTotal R.E. Taxes Fee Due Year 1 $4,053,397 0.00459 $18,607 $- Year 2 $4,117,849 0.00468 $19,281 $- Year 3 $4,181,947 0.00478 $19,972 $- Year 4 $4,245,592 0.00487 $20,682 $- Year 5 $4,308,673 0.00497 $21,409 $- Year 6 $4,371,075 0.00507 $22,153 $- Year 7 $4,432,674 0.00517 $22,915 $- Year 8 $4,493,341 0.00527 $23,693 $- Year 9 $4,552,935 0.00538 $24,487 $- Year 10 $4,611,308 0.00549 $25,297 $- Year 11 $4,668,304 0.00560 $26,122 $- Year 12 $4,723,756 0.00571 $26,961 $ 148,200 $271,580 $148,200 Sum of payments $419,780 *~ Assumes the current 2002 milliage rate of 21.68495 and the City's portion of that millage I equating to 4.59040 mills which is increased at a rate of 2% over the twelve year projection. nterest Rate 0.00% Deferral Period 11 Years Discount 6.79% Deferred Amount $ 148,200 Net present Value of Payments at 6.79% $ 69,974 Value of Contribution $ 78,226 Year Month 1 4 Monthly Payment Due Accrued Interest 25 $ 35 $ 45 $ 55 $ 65 $ 75 $ 85 $ 95 $ lO $ $ 11 $ $ 12 $ $ 1 $ $ 25 $ 35 $ 45 $ ~$ $ 65 $ 75 $ 85 $ 95 $ lO $ $ 115 $ 12 $ $ 1 $ $ 25 $ 35 $ 45 $ 55 $ 65 $ 75 $ 85 $ 95 $ ~o $ $ 11 $ $ 12 $ $ 1 $ $ 25 $ 35 $ 45 $ 55 $ 65 $ 75 $ 85 $ 95 $ lO $ $ ~1 $ $ ~2 $ $ I $ $ 25 $ 35 $ 45 $ 55 $ 65 $ 75 $ 85 $ 95 $ lO $ $ 11 $ $ 12 $ $ 1 $ $ 25 $ 35 $ 10 11 12 45 ~$ 65 75 95 lO $ ~ $ 'J2 $ ~ $ 25 35 45 65 75 ~$ 95 ~o $ ~ $ ~2 $ ~ $ 25 35 45 65 75 sS 95 lo $ ~ $ 12 $ 25 35 45 $$ 65 75 sS 95 lO $ 1~ $ ~2 $ ~ $ 25 3 $ 45 55 65 75 95 ~o $ 11 $ 12 $ ~ $ 25 35 45 55 65 75 85 95 10 $ 115 12 $ ~ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ - $ - $ $ $ $ $ $ $ $ $ - $ $ $ $ $ $ $ $ $ 148,200.00 $