TO: CRA Board of Commissioners
FROM: Jeff Costello, CRA Executive Director
DATE: November 13, 2018
Title
INTERLOCAL AGREEMENT BETWEEN THE DELRAY BEACH CRA, CITY OF DELRAY BEACH AND SCHOOL BOARD OF PALM BEACH COUNTY - ATLANTIC HIGH SCHOOL EAGLE NEST PROGRAM--PROJECT IV
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Recommended Action:
Recommendation
Approve the Interlocal Agreement between the Delray Beach CRA, the City of Delray Beach, and the School Board of Palm Beach County for the Eagle Nest Program Project 4 at Atlantic High School Career Academy thereby allowing the CRA to provide a loan of up to $150,000 to be used by the School District to construct a single-family home on the property.
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Background:
The subject property consists of a vacant approximately 50’ X 90’ (4,500 sq. ft.) lot in the Southwest Neighborhood (Subarea #8) and zoned R-1-A (Single Family Residential). The property (Lot 22, Block 32, Map of the Town of Linton, Florida) is being donated by the City.
The Atlantic High School Construction Academy Program prepares students for college and for employment in the building construction industry by providing the hands-on skills necessary to enter home-building, general contracting, and related industries. The program focuses on transferable skills and stresses the understanding of all aspects of the building construction industry. Academic studies and work experience are integrated. Training occurs in the classroom, lab, and at actual job sites as the students perform construction work building new homes as part of their high school curriculum. Once the home is complete it is sold to an income-qualified buyer through the City’s Purchase Assistance Program.
The CRA has previously participated in three Eagle Nest projects by providing construction loans for materials and necessary subcontractor work. Eagle Nest I is located at 46 NW 12th Avenue and Eagle Nest II is located at 232 NW 8th Avenue (houses completed and funding repaid). Eagle Nest III located at 108 NW 12th is completed and in the process of being sold to an income eligible family.
The attached Interlocal Agreement (“ILA”) between the Delray Beach Community Redevelopment Agency (CRA), the City of Delray Beach, and the School Board of Palm Beach County provides for the construction of the home for the Eagle Nest IV Program. Pursuant to the ILA, the City will provide the property and the CRA will provide construction funds in an amount up to $150,000. As with the Eagle Nest I - III Programs, the ILA specifies that the completed home will be sold through the City’s Purchase Assistance Program and the City will repay the funds provided by the CRA upon the closing of the sale of the home to a qualified buyer.
Section 4(d) of the ILA, “School District’s Responsibilities and Rights,” provides that “the School District shall take all necessary steps to ensure that construction of the Eagle Nest House shall proceed continuously and diligently, and in all events shall complete construction and equipage of Eagle Nest House and perform all covenants and promises contained in this Agreement not later than thirty-six (36) months after the last of the Parties execute the Agreement.”
Pursuant to Section 6(b) of the ILA, “Default,” “In the event that the School District defaults under its obligations during construction of the Eagle Nest House, the City is entitled to take possession of the Property and has the option to complete the Eagle Nest House using whatever Funds the City has retained and is entitled to receive the Funds from the School District that have been disbursed by the City for the Program, but have not been expended. “
Attachment(s): Location Map, Interlocal Agreement between CRA, City & PBC School Board
CRA Attorney Review:
N/A
Finance Review:
N/A
Funding Source/Financial Impact:
$50,000.00 allocated from General Ledger #6545 - Affordable/Workforce Housing Program -
Eaqle Nest Project for partial payment in FY 2018-19.
Timing of Request:
N/A