CRED South Florida 2014 Annual Report

CERTIFICATE INCOMMUNITYREAL ESTATE DEVELOPMENTAT THE UNIVERSITY OF SOUTH FLORIDA2014 ANNUAL REPORT

CRED SOUTH FLORIDA

2 | CRED SOUTH FLORIDA 2014

FLORIDA INSTITUTE OF GOVERNMENTThe Florida Institute of Government (FIOG) of the College of Arts and Sciences at USF was established by the Legislature in 1981 as part of a consortium of universities that share a statewide mission:

“TO INCREASE THE EFFECTIVENESS AND QUALITY OF GOVERNMENT IN FLORIDA THROUGH APPLIED

RESEARCH, TRAINING, AND TECHNICAL ASSISTANCE PROGRAMS AND PUBLIC SERVICE.”

The institute was renamed in honor of John Scott Dailey, its founding executive director. Since its inception, the FIOG at USF has provided training and technical assistance to code enforcement officers, city clerks, elected and appointed local and state governmental officials, volunteers and the general public.

ABOUT THE

THE JOHN SCOTT DAILEYFLORIDA INSTITUTEOF GOVERNMENTCOLLEGE OF ARTS AND SCIENCESUNIVERSITY OF SOUTH FLORIDA4202 East Fowler Ave, CHE205Tampa, Florida 33620Phone: (813) 974-8423Fax: (813) 974-2819fiog.usf.eduDirector, Angela Crist

CRED SOUTH FLORIDA 2014 | 3

PROGRAM OVERVIEW

COURSE SUMMARYThe Certificate in Real Estate Development (CRED) South Florida program at USF offers practical training for local community professionals to grow catalytic leadership to revitalize underserved communities. The three module program focuses on professional development for the local community development industry and works to create partnerships to develop and sustain viable communities. The program provides the tools needed to carry out successful community based real estate development projects through over 60 hours of classroom training, guest speakers, classroom exercises, homework and group projects. Participants who complete the course receive certificates of completion from USF Continuing Education and the Florida Institute of Government, and become CRED alumni.

PURPOSEThe goal of the Community Real Estate Development program is to create effective leadership in community development for long term benefits to the community. The purpose of CRED is to provide professionals with opportunities to problem-solve local market issues while providing exposure to local, seasoned practitioners at an affordable cost with support from a steering committee of dedicated professionals which connect the program to the market.

COMMUNITY BENEFITThe CRED program targets nonprofit, government organizations and other community development professionals to expand the capacity of these organizations. By expanding the number of skilled professionals who are uniquely qualified to formulate and package dynamic real estate and economic development projects in low income neighborhoods and communities, we can stimulate economic development and create new partnerships for viable community development projects.

DESIRED PARTICIPANT OUTCOMES• Develop a personal perspective• Learn basic skills in real estate analysis• Understand the language of real estate development, underwriting & investment• Identify a project and determine preliminary feasibility• Articulate a deal and package it for presentation to partners• Understand South Florida Market DNA• Gain exposure to local market opportunities and possibilities• Understand the community real estate development process• Gain Skills for managing development including partnerships, legal issues, project

management, financial statements, negotiating and presentation skills.

THE OVERALL PROGRAM OUTCOME IS TO PRODUCE A WELL-TRAINED WORKFORCE THAT CAN USE THE SKILLS ACQUIRED TO HAVE A REAL

WORLD IMPACT IN THEIR LOCAL COMMUNITY.

James Carras, as Principal of Carras Community Investment, has concentrated on designing and implementing responses and solutions for community and economic development opportunities nationwide.

JAMES CARRASLEAD FACILITATOR

OLGA G. ALVAREZ Project Coordinating Services, LLC

DAVID BRANDTHousing Finance Authority of Palm Beach County

JEREMY EARLEDania Beach CRA

NORM HOWARDHousing Finance Authority of Broward County

MARGI NOTHARDGlavovic Studio

GARY ROGERSLauderdale Lakes CRA

MITCH ROSENSTEINGreen Mills Group

ALLAN SCNIERHousing Leadership Council of Palm Beach County

GERMAINE SMITH-BAUGHUrban League of Broward County

REBECCA WALTERHousing Authority of theCity of Ft. Lauderdale

JAMES WHITEWeiss Serota Helfman Pastoriza Cole & Boniske, P.L.

GUEST SPEAKERS


SOUTH FLORIDA 2014 GRADUATES

BONNYE DEESE BROWARD ALLIANCE FOR NEIGHBORHOOD DEVELOPMENTBonnye is the Executive Director of BAND, a not-for-profit member organization that advocates for affordable housing and community economic development in Broward County. She has dedicated her career to building strong communities through education, financial literacy, youth and family services and community engagement. Through her efforts, over 1,000 families have obtained affordable homeownership, gained access to subsidies for home repairs, and have become involved in the community development process. Bonnye graduated from Florida A&M University.

JAMES DUKE J. DUKE LAND DEVELOPMENT, LLCJames has more than 26 years of construction industry experience, and founded J. Duke Land Development and J.Duke Construction, LLC. His experience includes high-rise multifamily, office condominium, education, retail, religious, and healthcare projects. J. Duke Land Development focuses on multifamily, retail, and hotel development projects in underserved urban markets. James has an Associates Degree in Architectural Technology, as well as certificates in the architectural management/drafting and construction management.

JAKELEEN FERNANDEZ DELRAY BEACH HOUSING AUTHORITYJakeleen is a Compliance Officer/DHG Liaison for the Delray Beach Housing Authority, working with facilities planning, maintenance administration, and program management. Her work involves the development, administration, and coordination of the Authority’s maintenance, modernization, acquisition, and new construction programs. Jakeleen also serves as coordinator and liaison for the housing authority’s non-profit subsidiary, the Delray Housing Group, Inc.

FRANCISCO FERMIN VOLUNTEERS OF AMERICAFrancisco is the Regional Director of Community Development with Volunteers of America – Florida where he provides support for the organization’s growth in real estate development of low income housing for the most vulnerable populations in the state of Florida. Francisco has over 13 years of combined experience in aviation, residential, commercial and light industrial construction, corporate sales, project management and business development.

WANDA GADSON PALM BEACH CO., DEPT. OF ECONOMIC SUSTAINABILITYWanda is a Planner I with Palm Beach County, Department of Economic Sustainability. She served as a past board member of the Delray Beach CRA and Community Land Trust of Palm Beach County during critical times of community revitalization. She was also the Executive Director of Community Financing Consortium, a very progressive affordable housing lending non-profit organization. Wanda has a Bachelor’s of Science degree in Finance from Florida State University.

VINCENT GARDNER BROWARD PARTNERSHIP FOR THE HOMELESSVincent currently works at Broward Partnership for the Homeless as the Housing Specialist. His responsibilities include community outreach to find owners, landlords and property managers to build a community network for families who have been displaced and are at 30% area median income. Currently, Vincent is working to develop opportunities for these families to increase their income and independence while avoiding homelessness. He has a B.A. in Philosophy from St. John Vianney College Seminary.

LUCY MORALES HARTY BROWARD COUNTYLucy is an accountant with the Broward County Housing Finance and Community Development Division, supervising the division’s fiscal operations including planning and grants. For the last three years, her responsibilities have focused on three DRI grants totaling $44 million. She is currently the Vice-President of the River Garden Sweeting Estates HOA. Previously, she has had her own small businesses in both St. Croix and in Jamaica, sold condos on the beach in St. Croix, and has been a reporter for Jamaica’s The Gleaner.


MICHAEL HUNEKE BROWARD COUNTYMichael is a Principal Planner for Broward County, Florida. While with the County he has successfully written high level planning policies and has administered the Broward County Neighborhood Stabilization Program, which was chosen as a HUD best practice example while under his leadership. Michael has a Master’s degree in Community and Regional Planning from Iowa State University.

MARIE JASMIN PALM BEACH CO., DEPT. OF ECONOMIC SUSTAINABILITYMarie is an experienced, dedicated public servant with Palm Beach County, Department of Economic Sustainability. In her capacity as a Planner for the past 10 years, she assists very low to moderate income families buy their first homes, repair their homes, connect to utilities, and prevent foreclosure/homelessness. She is a Haitian Immigrant and Naturalized American who is fluent in English, French and Creole. Marie will graduate from Nova Southeastern University with a MBA in Management in October 2014.

RANDY JESUS TATER TOWN PRODUCERandy has learned the produce business the old-fashioned way: by experience and from the ground up. He has owned several different businesses, all in the produce field. While managing and operating other ventures, Randy assisted in the daily management of the family’s produce stand, the well-known Tater Town in Ft. Lauderdale, Florida. He has since become the sole owner and manager of the business. Working with developers, contractors, and financial experts, he is in the planning stages of rebuilding Tater Town.

BRIANCA JOHNSON BROWARD ALLIANCE FOR NEIGHBORHOOD DEVELOPMENTBrianca is currently employed by BAND, a not-for-profit member organization that advocates for affordable housing and community economic development and works in the areas of single family affordable housing development and rehabilitation. She assists BAND in the process of rehabilitating blighted properties from acquisition to delivery of these homes to new homeowners. Brianca has a true passion for learning development and redevelopment and is currently completing her degree in Urban and Regional Planning.

MARK KARAGEORGE NEIGHBORHOOD RENAISSANCE, INC.Mark manages 79 rental properties for Neighborhood Renaissance, Inc., which provides housing for very low, low and moderate income families as well as market rate rentals. As a CRA boardmember, Mark has been participated in the policy team that has revitalized neighborhoods, completed award winning development, joint ventures for affordable housing, infill housing, market-rate developments along with grants for business relocation, façade, build-out and rent.

ANDRE McADEN BROWARD ALLIANCE FOR NEIGHBORHOOD DEVELOPMENTAndre is the President of the Broward Alliance for Neighborhood Development (BAND) and previously Treasurer for the organization. He is responsible for shaping the overall direction of the organization and leading each committee. He is also the managing partner for Blake & Associates CPA’s in Ft. Lauderdale. Andre graduated from Florida Agricultural and Mechanical University with his Bachelor of Science in Business and Master’s degree from the Keller Graduate School of Management.

ANNA McMASTER SOUTH FLORIDA COMMUNITY LAND TRUSTAnna is the Empowerment Coordinator for the South Florida Community Land Trust, focusing on initiatives that support upward mobility opportunities and better quality of life. She also founded two organizations, Urban Links Consulting and UrbanMatters CoLab, that focus on affordable housing and planning. Anna has a B.A. in Sociocultural Anthropology from University of California San Diego and a Master’s in Urban and Regional Planning from Florida Atlantic University.


SWATI MESHRAM, Ph.D. ARCHITECT AND URBAN PLANNERSwati is an architect and urban planner, working as an independent consultant. During her career she has overseen and authored many entitlement applications, policy documents and master planning studies. She has a special interest in redevelopment planning and community development and has authored several articles on planning and sustainable development. Swati has certifications from America Planning Association; Institute of Town Planners, India; and United States Green Building Council.

CARLOS PRADA URBAN LEAGUE OF BROWARD COUNTYCarlos is the Housing Project Supervisor for the Urban League of Broward County, a community based organization dedicated to empowering communities and changing lives in the areas of education, jobs, housing, and health. Carlos is responsible for maintaining and securing properties after acquisition as well as providing routine property inspections. Carlos has his B.A. in Criminal Justice with a Minor in Public Administration, and served for over ten years in the United States Army working in Military Intelligence and Special Operations.

SHELDON RILES BROWARD COUNTYSheldon is an Associate Planner for the Planning Redevelopment Division of the Environmental Protection and Growth Management Department for Broward County. As a planner, Sheldon works closely with the Broward County Unincorporated areas to establish and implement new policies and procedures in the unincorporated neighborhoods. Sheldon has an MBA from Nova Southeastern University and a B.A. in Business Administration from Florida Atlantic University. He is a licensed real estate broker and a member of the Realtor Association of Greater Fort Lauderdale.

LAUREL ROBINSON WEST PALM BEACH HOUSING AUTHORITYLaurel has been the Executive Director of the West Palm Beach Housing Authority since 1999. She has over 20 years of experience in the affordable housing industry. Laurel holds a Master’s in Public Administration from the University of Hartford and serves on the board of the Florida Association of Housing and Rehabilitation Officials, the Board of the Palm Beach Housing Leadership Council and is an active member of the Public Policy Committee.

JACQUELINE ROBOTHAM NEW VISIONS CDCJacqueline is the Housing Manager and HUD-certified Housing Counselor for New Visions Community Development, a division of Mount Bethel Baptist Church in Ft. Lauderdale. Jacqueline has helped many improve their lives by increasing their understanding of wealth building, assisting them in setting and reaching short and long term goals and obtaining affordable housing. Jacqueline is a well-known housing advocate in the Broward County redevelopment and revitalization movement. She is a graduate from Manchester University (UK) in Education, Community and Training.

ANTHONY SANDERS CITY OF HALLENDALE BEACHPastor Sanders has been a Commissioner/Vice Mayor for the City of Hallandale Beach for six years and the Senior Pastor and Founder for Higher Vision Ministry for over 14 years. As a city commissioner, he has been instrumental in bringing many public/private partnership opportunities, housing programs and projects, and bridging the gap between city services and the non-profit community. Anthony is an activist in a number of community service organizations and has won many community service awards for his work to improve the community.

MELISSA SMALLWOOD REBUILDING TOGETHER BROWARD COUNTYMelissa is the Director of Community Partnerships with Rebuilding Together Broward County, working in areas from sales and fundraising to program development and advocacy. She works closely with governments, agencies and nonprofits to provide free home repairs for low-income elderly, disabled persons and veterans. She strives to find permanent affordable housing solutions for the homeless and help them develop workforce skills. Melissa is pursuing a Ph.D. in Criminal Justice from Florida International University.

SOUTH FLORIDA 2014 GRADUATES


LYNN SOLOMON LYNN SOLOMON, P.A.Lynn is an attorney specializing in public finance, real estate development, economic/community development lending, construction and permanent financing. Her areas of practice include complex commercial real estate transactions, real estate development, foreclosures and closings for financial institutions and governmental entities. Lynn is an active participant in her community and serves on the board of directors of a number of community and professional organizations.

TANYA WARD BENJAMIN COMMUNITY LAND TRUST OF PALM BEACH COUNTYTanya is the Housing Manager for the Community Land Trust of Palm Beach County in Lake Worth. Her responsibilities include tenant and property management for the Land Trust’s 25-unit affordable rental property, “Davis Landings.” She has worked with South Florida community development and affordable housing programs in public, private and non-profit sectors since 2006. Tanya has a B.A. in Geography and Sciences from the University of the West Indies, Jamaica and a Masters in Urban Planning from Michigan State University.w

AVIS WILKINSON, MPA CITY OF FORT LAUDERDALEAvis is the Housing Programs Administrator for the City of Fort Lauderdale, where she supervises, facilitates and coordinates the Housing Process for Federal and State Funds to provide repair assistance, rental assistance and down payment assistance to low-income individuals and families. Avis has also served in this capacity in Daytona Beach where she also managed contractors and acted as the Affordable Housing Liaison for the Affordable Housing Advisory Committee.


CULMINATIONGROUP PROJECTS AND THE CULMINATION EVENT

Each CRED class ends with a culmination event that provides an opportunity for each student to demonstrate what they have learned using real-life case studies. This process is integral to the success of the program by providing a platform upon which participants’ achievements in the course can be measured. The Culmination Event also gives participants experience in pitching a possible development project based on their own creativity and analysis of feasibility and funding.

Members of the 2014 class developed project concept papers based on an identified problem or opportunity and presented their concepts to the class at the beginning of the course. Class members voted to determine which of the concepts best represented the areas of interest, areas of learning, and market-relevance, then divided into teams around the selected projects.

The seven projects chosen this year encompass a range of issues in the South Florida region. Project teams developed their project including parameters set by the instructor. As the Culmination Event approached, participants finalized their presentations making sure all parameters were included.

Presentations were reviewed by a select group of community development practitioners, including members of the CRED Steering Committee, at the Culmination Event. Each group was asked follow-up questions and given beneficial feedback by the review team. Projects were reviewed based on the following criteria; relevance to today’s market, quality of presentation, quality of substantive information and the ability to address and deal with questions.

The seven projects presented by this year’s class are detailed in the following pages.


THE YOUNG COLLECTIVEBRIANCA JOHNSON, ANNA McMASTER, LYNN SOLOMON, MELISSA SMALLWOOD

DEVELOPMENT CONCEPTThe Young Collective will be a co-working space and business incubator that will serve as a community hub and activator. The space will be designed to be flexible with day and night activities, filled with natural light and encourage social interaction. It will use repurposed and affordable materials and honor the history of the building and neighborhood.

DEVELOPMENT SCHEME/SITE PLANThe Young Collective will be on a 10,823 sq. ft. lot located at 725 Progresso Drive, currently the home of the Purvis Young Museum. It is in Northwest/Progresso Flagler Heights CRA and an Enterprise Zone located within the Downtown Transit Corridor. The building is 5,600 sq. ft., zoned for office use. The property use type is vacant/owner-user.

FINANCIAL FEASIBILITYThe project will cost $1,138,386 with a Project Equity of $330,000 from grants, loan subsidy and other funds. Total financing of $808,386. $496,00 from the Florida Community Loan Fund at 6.5% for 30 years and $312,000 from CRA Low Interest Program at 3.25% for 5 years, 6.5% for remaining 25 years.

COLLABORATIONSPotential partners include the Community Foundation of Broward County, Gates Foundation, Knight Foundation, FAU and Broward College. Additional future partners include; Bank of America, Wells Fargo Foundation, PNC Bank, Veteran’s Corp., IBM and Cisco Donation Program.

THREATS AND CHALLENGESMitigating threats include the possibilities of not obtaining planned subsidies, lenders that cannot underwrite experience and management, lease-up issues, increased construction costs, people/organizations who don’t understand the value of co-working spaces and the possibility of Transit Corridor parking reductions not being expanded to the site.

MARKETThere are two new co-working sites under development in the downtown Fort Lauderdale area; unlike some business models, this is not competition but a sign of a ripe market. On average, more co-working spaces in a city tend to have higher membership rates and revenues of these spaces. Office space in Fort Lauderdale in the last 12 months has had decreasing vacancy rates, quick absorption rates and substantial growth in office tenant rents.

COMMUNITY IMPACTThe Young Collective is an investment in Broward’s emerging and increasingly innovative independent workers, small businesses and students. This is a tool to build an engaged and connected community by linking people not only to each other but to a shared place. It will also beautify the area, provide a shared learning space, increase the tax base, provide talent retention and be a sustainable economic development and job growth tool.

MANAGEMENTThe Young Collective will be a non-profit organization with an office manager and community manager.


HEART OF BOYNTON COTTAGE DISTRICTMARK KARAGEORGE, WANDA GADSON, MICHAEL HUNEKE

DEVELOPMENT CONCEPTThe Cottage District will provide 18 single-family affordable homes. Boynton Beach CRA currently owns 80 percent of land in this block and is acquiring all but three remaining lots. Upon acquisition, an RFP will be issued for a developer to build the homes, with the homes being sold to low and moderate income families.

DEVELOPMENT SCHEME/SITE PLANThe block is bounded north and south by NE 5th Avenue and NE 4th Avenue and east and west by Seacrest Boulevard and NE 1st Street in Boynton Beach, FL. The site is 4.5 acres and is mostly vacant lots with a few single-family homes. It is zoned R2 Residential and will be changed to R1 Residential to better accommodate the 18 single-family development.

FINANCIAL FEASIBILITYThe development cost is estimated at $3.15 million. A low-interest loan will be acquired using the land as collateral and repaid upon sale of the homes. Shortfall in sales revenue versus loan repayment will be covered by CRA funds. Fourteen 3 bedroom, 2 bath homes will be sold for $160K each and four 4 bedroom, 2 bath homes will be sold for $170K each.

COLLABORATIONSThe development will be a collaboration between the Boynton Beach CRA, the City of Boynton Beach, a developer and Community Development Corporation (CDC) via RFP. The CRA will be responsible for tasks ranging from acquisition to repaying loan shortfall. The City will be responsible for street modifications/additions, utility connections and permitting. The CDC will market the homes, qualify buyers, provide home buyer education and assist in securing down payment assistance.

THREATS AND CHALLENGESDespite improvements, the area is still perceived as undesirable and has issues with crime and code enforcement. Community outreach, along with the finished development, will help improve this perception. Conversations with the Boynton Beach CRA, the City, and the Palm Beach County Housing Finance Authority uncovered few issues regarding permitting and construction financing. Sources of downpayment assistance do exist for the home buyers, but the project’s timing and the needed funding can affect availability.

MARKETThe Heart of Boynton Cottage District is located in close proximity to city services, a cultural center, transit, the beach, major transportation, A-rated schools, child care, and health care. The area is characterized by a high percentage of older single-family rental units and low-income residents. The demand for affordable home ownership is high and the supply of new affordable homes is virtually non-existent.

COMMUNITY IMPACTThe development will help stabilize the neighborhood, provide affordable home ownership, eliminate blight, increase the tax base, create jobs, rebrand the neighborhood, and provide a catalyst for future development and community pride.

MANAGEMENTThe CRA will have the responsibility of overseeing the project and managing the partners. Community forums will be held and houses of worship and community centers will participate in the overall marketing effort to secure and qualify buyers and promote the benefits of the development to the neighborhood.

JAKELEEN FERNANDEZ, SWATI MESHRAM, JACQUELINE ROBOTHAM, FRANCISCO FERMIN,


GREATER LAUDERDALE MARKET CENTERJAKELEEN FERNANDEZ, SWATI MESHRAM, JACQUELINE ROBOTHAM, FRANCISCO FERMIN,

DEVELOPMENT CONCEPTThe Greater Lauderdale Market Center will be an indoor/outdoor, year round, 6-7 days a week, national and international 18 acre food distribution operation. The Market will also provide business training for urban/rural farmers and entrepreneurs.

DEVELOPMENT SCHEME/SITE PLANThe Market Center will be located at the SW corner of NW 31st Ave and Oakland Park Blvd, zoned B-2 Community Business District, Local Activity Center. The site is a Brownfield site, in a Foreign Trade Zone (FTZ) and a Historically Underutilized Business (HUB) zone.

FINANCIAL FEASIBILITYThe total project cost is $6.88 million with Equity of $2.2 million creating a gap of $4.69 million which will come from grants, CRA (land & soft costs) and New Market Tax Credits. Operating revenues include fresh market rent, events at the incubator, commercial kitchen rent, ATM, general store and food hub rent and fairs and events for a positive cash flow in year 4. In year 7; operation costs reduces 7 percent due to green construction systems, 20 percent of project cost subsidized from NMTC program, financing to avoid balloon payment and the project will be valued at 2.7 million additional equity.

THREATS AND CHALLENGESThreats include not getting grants concurrently, delayed maturity, community resistance and unexpected weather patterns.

MARKETBroward County is the second largest county in the state and eighth largest in the nation. It has the sixth largest school district nationwide and it is the most racially and ethnically diverse county in Florida. Residents of Broward County are Black/African-American, Caribbean and Hispanic, and twelve percent live in poverty. The Market Center will be located within the Dania Beach USDA designed Food Desert Tract #805.

COMMUNITY IMPACTThe project will create sustainable direct and indirect jobs, change the face of the community’s mental and physical health, directly impact the pocketbook of each individual willing to participate and rebuild a stronger and more progressive social fabric for the community.


MERRYPLACE AT PLEASANT CITYTANYA WARD BENJAMIN, LAUREL ROBINSON, MARIE YANIQUE JASMIN

DEVELOPMENT CONCEPTPleasant City has a rich history as a previously stable African American community. The West Palm Beach Housing Authority (WPBHA) conceived MerryPlace to reinvigorate the area by providing affordable rental and homeownership opportunities to the workforce of West Palm Beach. MerryPlace’s initial plans resulted in 128 complete rental units, a community Center and playground area. The projects calls for the completion of construction of an affordable housing complex containing both single-family and multi-family units: 46 townhomes, 52 condominiums and 14 single-family homes.

DEVELOPMENT SCHEME/SITE PLANMerryPlace is a 14.67 acre urban infill project located in the first platted neighborhood in West Palm Beach. All necessary entitlements (zoning, replatting, site plan approval, landscaping and lighting plan, engineering etc. and PBC School District concurrency approval) have been granted and approved.

FINANCIAL FEASIBILITYTo complete MerryPlace, the previously-committed $5 million CHWIP funds need to be replaced. This asset can be used to negotiate with Grand Bank & Trust to renegotiate the existing $3 million loan and apply for additional construction financing. Phased construction will begin with the 14 single family homes being completed and sold first, then the 46 townhouses. Original plans for condos will be replaced by an application for 9 percent LIHTC in the next application round authorized by Florida Housing Finance Corporation.

COLLABORATIONSCollaboration partners include: PBC Housing Finance County (PBCHFA), FL Community Loan Fund, Housing Consultant on Tax Credit Housing programs, Faith, Hope & Love Charity, West Palm Beach CRA, Palm Beach County Dept. of Economic Sustainability, City of West Palm Beach, Grand Bank & Trust, Pleasant City Residents Association.

THREATS AND CHALLENGESA major challenge is the three million dollar existing debt on the site restricting future funding opportunities. There is also the perception of Pleasant City as a disinvested area in the City of West Palm Beach.

MARKETDeed restrictions limit purchase or rental to households with incomes between 80-120 percent AMI, which is considered “workforce housing” for professionals such as teachers, police officers, city and county staff. Groups specifically targeted for marketing include workers of the Good Samaritan Hospital, Rybovich Marina, and former Pleasant City residents.

COMMUNITY IMPACTMerryPlace will provide affordable housing close to transit, employment locations and major transportation routes. MerryPlace is part of the redevelopment strategy of the Pleasant City/Northwood area of West Palm Beach. Northwood Completion of this project will solidify the Pleasant City community and reinforce the CRA’s NW Corridor Plans. Tax rolls in the area will increase, and the project will provide construction jobs for residents.

MANAGEMENTEnterprise Properties is the non-assisted property management arm of the WPBHA. Already managing the MerryPlace rental units, this organization will coordinate the Master Association for all build outs.


URBAN HEIGHTS

DEVELOPMENT CONCEPTThe Urban Heights project will develop two 12-unit (2 bedroom, 2 bath), two story below-market-rate apartments in the historic Dorsey Riverbend community in Ft. Lauderdale. The plan is to purchase and demolish the existing church building (currently not operating) and demolish the existing CBS structure.

DEVELOPMENT SCHEME/SITE PLANThe site is in a residential community and is 6 lots totaling 45,000 sq. ft. (1.03 acres). It is currently zoned as RMM-25, which allows for a maximum density of 25 units per acre. It is 5 minutes west of downtown and within walking distance to major attractions and restaurants; it is also within one mile to 10 or more basic services.

FINANCIAL FEASIBILITYThe goal is to acquire, build, lease then hold for 5 years and then sell. Estimated development cost of the development is $3,897,000, with an estimated land cost of $180,000. Seventy percent of the project’s financing will come from a conventional bank loan, and the annual debt service is anticipated at $536,183. Equity totalling $200,000 will be contributed from development/architectural fees and construction. The local Community Redevelopment Agency would contribute $100,000 to the project and half of offsite improvements.

CARLOS PRADA, ANTHONY SANDERS, JAMES DUKE

MARKETFort Lauderdale supports a diverse range of industries, including; marine, manufacturing, finance, insurance, real estate, high technology, and avionics/aerospace, film and television production. Rental rates have grown substantially in the last few years. Vacancy rates are less than 4% and projected to stay low as demand outpaces supply.

COMMUNITY IMPACTThe project will create an additional housing option for those who are moving up to stay in the community. It will encourage future quality residential and commercial development, create diversity among income levels, add value to the neighborhood housing stock and increase the tax base.


TATER TOWN FARMER’S MARKET

DEVELOPMENT CONCEPTThe project includes redeveloping the existing Tater Town Market, a family-owned business serving the local community since 1964, into a live/work space consisting of a farmer’s market, apartments and retail space. The goal is to create a modern and attractive mixed-use facility that will offer an exceptional shopping experience and reinvigorate business.

DEVELOPMENT SCHEME/SITE PLANThe 1.19 acre site in unincorporated Broward County consists of eight parcels currently designated as “strip zoning”, zoned as both B-3 (commercial) and RP-1 (residential and parking). Zoning must change to Planned Unit Development to allow for residential and non-residential use. The new Market will be a 24,000 a sq. ft., two-story structure. The street level will house a produce market and a loading dock (15,500 sq. ft.), with several small restaurants (2,850 sq. ft.). The second floor will have six modern, light-filled and affordable apartments for local families (5,700 sq. ft.).

FINANCIAL FEASIBILITYTotal development cost is estimated at $4.4 million. The Tater Town Produce development would support $3.3 million in debt financing, leaving a financial gap of $1.1 million to be filled by supporting equity sources. Tater Town will generate an NOI of $300,000 at Year 1 (accounting for assumptions), and increase by 1.75 percent annually over nine years. Apartment rents can yield an ROI of 5 percent and increase to 10 percent by Year 10.

COLLABORATIONSTater Town has partnered with subject matter experts and an experienced developer with a proven track record. The Development Team is collaborating with several Broward County and regional agencies to provide funding/loans and resolve entitlement issues.

THREATS AND CHALLENGESUnincorporated Broward County does not have an existing “mixed-use” zoning category, and PUD zoning requires a minimum of five-acres and thus necessitates a variance or internal language change. Another possibility includes using “Unity of Titles” to unite the eight parcels into one and eliminate strip zoning. Gap financing is also challenging due to the uncertainty of securing grants and the complexity of New Market Tax Credits.

SHELDON RILES, RANDY JESUS, LUCY MORALES HARTY, AVIS WILKINSON

MARKETMost residents of Boulevard Gardens and surrounding neighborhoods are African American. Half of the County’s very low-income census tracts are in Tater Town’s area and over 40 percent of revenues come from food assistance programs. Competition includes supermarkets, local urban organic farms, pop-up barbecue stands and Betty’s Soul Food Restaurant.

COMMUNITY IMPACTTater Town Market will provide convenient access to fresh, high-quality produce. It will reinvigorate the area with a new landmark business and modern residences; it would be an important neighbor to the African American Library and the Urban League, and support the revitalization of 27th Avenue. Tater Town Market will create 25 to 30 full-time jobs and generate additional sales tax revenue. Tater Town Market will foster a sense of “place” by allowing residents to interact in food courts and an open-air market. The attractive design of the eco-friendly housing will also increase housing options and diversity.

MANAGEMENTThe real estate management firm will manage the food court, residential units and building. Tater Town Produce, LLC. will manage Tater Town Market.


WASHINGTON PARKVINCENT GARDNER, BONNYE DEESE, ANDRE McADEN

DEVELOPMENT CONCEPTThe project will create a housing development that is representative of the South Florida community. Washington Park will include a mix of affordable housing units with set-asides for seniors and veterans.

DEVELOPMENT SCHEME/SITE PLANWashington Park ia a 3.5 acre property, with 22 existing rental units and a 1300 sq. ft. clubhouse already developed on the site, located in the Washington Park community of Hollywood. The property is site planned for an additional 42 units. BAND will complete the build-out of 2 additional buildings, and proposes to reduce the square footage of the new units and increase the unit density by 12 units. The property is zoned RM-18, with a transit score of 36/100 (some transit available) and a walk score of 52/100 (somewhat walkable).

FINANCIAL FEASIBILITYThe total cost of the project including acquisition of the property and three phases of development is $13,490,228.00. It is projected that the yearly Effective Gross Income will be $9558,758.00 and the Net Operating Income will be $497,158.00 with a Debt Coverage Ratio of 1.32%. There is currently $2,850,000.00 in cash opportunities available from a collection of sources including developer fee equity, City of Hollywood, Broward Housing Finance Authority and HOME Funds. The Gibraltar Private Bank and Trust is a viable source of debt financing.

COLLABORATIONSBAND will partner with its member organizations to provide property management services, offer onsite supportive services and prepare renters for homeownership through on-site financial literacy and homebuyer education. Other collaborators include: United Way of Broward County, Boward Elderly and Veterans, Operation Sacred Trust, Volunteers of America and the Salvation Army of Broward Outreach Centers.

THREATS AND CHALLENGESThreats include; NIMBY (“Not in my Back-Yard”) mentality, political and regulatory issues, stigma of affordable housing, changing political support and high impact fees.

MARKETOver half of the population of Washington Park/Beverly Park is white, and 41.7 percent is black. The median household income of the area is $42,628. Eight percent of area residents are unemployed, and 12 percent are below the poverty level. There is a lack of affordable rental units to meet the demand: The median house or condo value is $96,968 and the median contract rent is $848. Fifty percent of housing stock is over 30 years old.

COMMUNITY IMPACTResidents will benefit and engage with neighbors of a variety of ethnic/social groups and income ranges. Residents will have direct access to programs and community events offered by the property management company. Washington Park will increase area population and consumer spending within the City of Hollywood and increase tax revenue to the city.

MANAGEMENTBAND will look to partner with its member organizations to provide property management services.

OUR SUPPORTERS

CRED SOUTH FLORIDA STEERING COMMITTEE

OUR SPONSORS

PHILLIP BACONSouth Florida Smart Growth Land Trust

MANDY BARTLESouth Florida Community Land Trust

DAVID BRANDTHousing Finance Authority of Palm Beach County SUZANNE CABRERAHousing Leadership Council LUCY CARRPNC Bank

BONNYE DEESEBroward Alliance for Neighborhood Development

BRYAN FINNIERelated Development

NORMAN HOWARDHousing Finance Authority of Broward County

PARNELL JOYCEBroward Housing Authority

MICHAEL PECARNeighborhood Renaissance

GARY ROGERSCity of Lauderdale Lakes Community Redevelopment Agency

RALPH ROSADO South Florida Community Development Coalition

KIMBERLY SPENCEHousing and Community Development Consultant

REBECCA WALTERFort Lauderdale Housing Authority

VISIT FIOG.USF.EDUFOR MORE INFORMATION, PLEASE CONTACT:

Becky Clayton, Training Support [email protected] | (813) 974-9627

CRED South Florida 2014 Annual Report

Documents

Transcript of CRED South Florida 2014 Annual Report