THE ENVIRONMENTAL PROTECTION AND GROWTH MANAGEMENT DEPARTMENT AND THE HOUSING FINANCE AND COMMUNITY REDEVELOPMENT DIVISION RECOMMEND APPROVAL.
This item supports the Board’s Value of “[O]ffering 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, as well as the Value: "Ensuring economic opportunities for Broward’s diverse population and businesses", and the corresponding goal of, "[A]ttract and retain all types of business, especially high-wage industries that offer employee benefits, through partnerships with the Alliance, chambers of commerce, colleges and universities, CareerSource, and any other available avenues."
The Oakland Park Mixed Use Project is a joint venture between the City of Oakland Park and Integra Investments LLC. Currently the City owns two vacant parcels on the west side of N. Dixie Highway between N. E. 37th and N. E. 39th Streets. The two parcels both front on N. Dixie Highway but are separated by N.E. 38th Street. This area is in the city's Community Redevelopment Area (CRA). This CRA does not have tax increment financing. The proposed project includes selling both parcels to the developer for the construction of 29,000 square feet of office space, 33,600 square feet of retail, 101 residential units and 343 structured parking spaces. The Oakland Park City Hall will lease space in the new office building. All development will generate new ad valorem tax revenue. Currently neither parcel generates ad valorem tax revenue as the parcels are currently owned by the City. The estimated value of the project by the City at build out is $40 million and the estimated real estate taxes generated for the County only is estimated by the City to be $207,567 in the first full year of assessment. The City estimates the growth in value will increase four per cent annually so that by the fifth year the annual taxes paid to the County-only portion would be $242,824 per year. The first five-year total taxes due the County would be $1,124,252.
The City, a previous recipient of Redevelopment Capital Program (RCP) and Broward Redevelopment Program (BRP) funds, has demonstrated success utilizing these sources and is requesting that the County provide $1.1 million dollars toward the project construction costs. The total estimated tax revenue to the County would be approximately five million dollars through 2040. An interlocal agreement would be developed between the City and the County and presented to both the City Commission and the County Commission for approval. The County would provide no funding until the project receives all certificates of occupancy. It should be noted that an additional benefit of the project is that the current City Hall property east of N. Dixie Highway is planned by the City to be redeveloped into a future mixed use development which would also add taxable value to land that is currently off the tax base.
In summary the City has requested County gap funding to support construction of the mixed use project which delivers significant new tax base that benefits the County and "pays back" the requested County funding in five years.
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