Title
The Palms Transformational Projects Program Incentive Request (B)
Explanation
The CRA has received an application for Transformational Incentives for a project entitled The Palms on Southwest 2nd Avenue from Southwest 2nd Ave, L.L.C. based out of Gainesville, Florida.
The proposed project is located on the northeast corner of Southwest 2nd Avenue and Southwest 3rd Street. The project includes one four-story building. The project is an upscale multi-family condominium residential project with 48 two bedroom/two bath units. Parking will not be provided onsite; instead the developers may obtain parking spaces, if available, from the Southwest Downtown Parking Garage, located on the building's northern border. The developer will be purchasing offsite stormwater retention from the City of Gainesville.
The Transformational Incentive Program allows for projects that receive 25 points to request 80% of the increment generated by the project for 15 years. The program was amended to allow those projects that receive 50+ points to request 90% of the increment. In this application the developer has requested 80% of the increment generated by the project for 15 years. The incentive would be capped at the "but for" gap claimed by the applicant at the Net Present Value of $1,158,640. The remaining increment would be allocated to the Downtown Redevelopment Area in the projected amount of $479,150 over fifteen years. After fifteen years the full increment generated by the project would be allocated to the Downtown Redevelopment Area Trust Fund until the end of the redevelopment area's life.
Staff retained PMG Associates to complete an independent fiscal evaluation of the application including verification that a gap does exist and a review of the points claimed by the applicant. PMG Associates, Inc. found that the gap of $1,158,640 does exist, but that the project does not meet the requirements for an 80% incentive as it does not meet ...
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