THE PURCHASING DIVISION AND THE ENVIRONMENTAL PROTECTION AND GROWTH MANAGEMENT DEPARTMENT/THE HOUSING FINANCE AND COMMUNITY REDEVELOPMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
This item supports the Board’s value: “Offering sustainable, compatible, innovative housing options for all income-levels, including integrated, permanent supportive housing ”and the corresponding goal of "Increase the availability of affordable housing of all types, countywide, in every community using effective, uniform criteria, policies and strategies.”
The Office of Economic and Small Business Development did not establish a County Business Enterprise (CBE) participation goal for this project, as funding will not be provided by the County; however, if the developer elects to subcontract any part of the work, the County encourages the use of CBE firms.
This agreement provides for an experienced, qualified real estate developer for a mixed-use development project of 168 residential units and approximately 4,000 square feet of retail/commercial space to be located at 600 North Andrews Avenue, in the City of Fort Lauderdale, Florida, currently owned by Broward County. The developer is responsible for financing, design, construction, operation and maintenance of the project. The project will include 150 housing units for moderate or below moderate incomes (i.e., up to 120% of Area Median Income) and 18 market rate units.
This agreement will generate revenues including: (1) an initial capital lease payment of $300,000 (a non-refundable amount of $25,000 and $275,000 in an escrow account, payable upon Commencement Date); (2) 25% of any net cash flow generated from the commercial/retail use of the project; and (3) a minimum annual base rent of $25,000 is due prior to Rent Stabilization (as defined in the agreement) or 24 months after the Commencement Date (closing of construction financing by Related FATVillage, LLC), whichever is sooner. Upon Rent Stabilization or 24 months after Commencement Date, an annual minimum base rent of $100,000 or 25% of net cash flow (whichever is greater) is payable. The annual minimum base rent of $100,000 escalates 3% each year.
On June 7, 2016 (Item No. 71), the Board approved the Request for Proposals (RFP) No. N2111265P1, Real Estate Developer for the Development of 600 North Andrews Avenue, Fort Lauderdale, Florida. Three firms submitted proposals.
On September 16, 2016, an Initial Evaluation Meeting was held. The Evaluation Committee determined that all three firms were responsive and responsible to the requirements of the RFP.
On October 21, 2016, a Final Evaluation Meeting was held. After evaluation and scoring, the Evaluation Committee named Related FATVillage, LLC, as the first-ranked firm.
On November 29, 2016 (Item No. 21), the Board approved the Evaluation Committee’s final ranking of the qualified firms and authorized staff to proceed with negotiations.
On July 31, 2017, the Evaluation Committee was reconvened for further discussions regarding new information. There was no change in the ranking of the vendors.
Four Sunshine negotiation meetings were held: June 27, 2017, August 30, 2017, September 22, 2017 and November 15, 2017. These meetings were attended by representatives of Related FATVillage, LLC, the Housing Finance and Community Development Division, the County Attorney’s Office and the Purchasing Division.
Due to the nature of this project, the agreement does not contain a standard Termination for Convenience clause. If the Commencement Date does not occur by December 31, 2019, the agreement shall be deemed automatically terminated, unless the Parties agree otherwise in writing. The County may also terminate the agreement if the Tenant fails to cure an Event of Default within the time provided.
The Evaluation Committee consisted of:
Connie Mangan, Purchasing Manager, Purchasing Division, Finance and Administrative Services Department (Chair and Non-Voting Committee Member)
Alan Cohen, Assistant to the County Administrator, County Administration
Sandy-Michael McDonald, Director, Office of Economic and Small Business Development
Ralph Stone, Division Director and Executive Director, Housing Finance and Community Development Division, Housing Finance Authority of Broward County
Richard Tornese, Director, Highway Construction and Engineering Division, Public Works Department
Purvi Bhogaita, Director, Real Property Section, Facilities Management Division, Public Works Department
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