Title
Update - Tiger Bay Court Rental Development (B)
Explanation
At the June 24, 2002 City Commission meeting, the City Commission authorized a $100,000 loan to Jennings Development Group, Inc. from next year's New Rental Construction Program, with the remainder of the $100,000 net present value commitment needed by the developer to come from a grant from surcharges on water/wastewater connection charges.
Jennings Development Group, Inc. (JDG) submitted tax credit applications to the Florida Housing Finance Corporation in 2002 and 2003. Neither application was approved. Following those denials, JDG did not renew their option to purchase the project site. The property owner, Alan V. Iselin, formed Tiger Bay Group, LLC to revise and resubmit the existing tax credit application during the 2004 application cycle.
At their October 27, 2003 meeting, the City Commission approved extending the funding commitment previously approved for Jennings Development Group, Inc. to Tiger Bay Group, LLC with a change in fiscal year funding sources for HOME and SHIP to FY 03-04.
Tiger Bay Group, LLC's 2004 tax credit application also was not successful. Only three applications were funded in the Front Porch Florida set-aside that included Tiger Bay Group's application. The three funded projects had higher lottery numbers than Tiger Bay Group; therefore the project was not funded. Mr. Iselin appealed the 2004 tax credit funding decisions and also submitted a new application during the 2005 tax credit cycle.
At the November 8, 2004 City Commission meeting, the City Commission heard a presentation from Mr. Iselin and approved: 1) re-extending the $100,000 funding commitment for Tiger Bay Court Rental Development to Tiger Bay Group, LLC; and 2) providing the funds as an outright $28,000 grant from HOME funds and a $72,000 water/wastewater surcharge grant from the affordable housing set-aside. During the meeting there was discussion, with no formal motion, of linking the residential and commercial components of the project to the release of the City's grant funding. In addition, the City Commission directed the City Manager to work with the City Attorney to develop a mixed use site plan agreement whereby mixed use be tied to residential use for the Tiger Bay development and that the agreement should include design input in the project.
Control of the Tiger Bay Group has changed. Howard K. Wallace is the President of Tiger Bay Group, LLC and will present information on current ownership, status of the tax credit application, and project plans. The new owners are continuing the appeal of the 2004 tax credit funding decisions and moving forward with the 2005 tax credit application cycle for the residential component of the project. It is staff's understanding that Mr. Iselin is in the process of selling the commercial component.
Fiscal Note
$28,000 of HOME funds and $72,000 of water/wastewater surcharge funds from the affordable housing set-aside are available to fund the $100,000 local government contribution to the residential component of the development.
Recommendation
The City Commission: 1) Hear a presentation from Howard K. Wallace, President of Tiger Bay Group, LLC; and 2) authorize the City Manager or designee to take appropriate action.