TO: CRA Board of Commissioners
FROM: Christine Tibbs, Assistant Director
THROUGH: Renée A. Jadusingh, Esq., Executive Director
DATE: July 23, 2024
Title
APPROVE THE FIRST AMENDMENT TO THE PURCHASE AND SALE AGREEMENT WITH LAKE IDA CHURCH OF CHRIST, INC. FOR A PORTION OF THE PROPERTY LOCATED AT 1300 LAKE IDA ROAD TO AMEND THE PORTION OF PROPERTY TO BE PURCHASED, INCREASE THE TOTAL PURCHASE PRICE TO $768,400, AND AMEND THE APPROVALS PERIOD AND THE CLOSING DATE
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Recommended Action:
Recommendation
1. Approve the First Amendment to the Purchase and Sale Agreement with Lake Ida Church of Christ Inc. for a portion of the property approximately located at 1300 Lake Ida Road to amend the portion of property to be purchased, increase the total purchase price not to exceed $768,400, and extend the Approvals Period and Closing Date, in a form legally acceptable to the CRA Legal Counsel;
AND
2. Authorize the CRA Board Chair to execute the First Amendment to the Purchase and Sale Agreement, and any related documents, in a form legally acceptable to the CRA Legal Counsel.
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Background:
On February 27, 2024, the CRA Board approved a Purchase and Sale Agreement (Agreement) with Lake Ida Church of Christ, Inc. for a portion of their property which is approximately located at 1300 Lake Ida Road (Subject Property). The Subject Property comprises 42,900 square feet of land underlying the east parking lot of Lake Ida Church of Christ and is located at the southwest corner of Lake Ida Road and Roosevelt Avenue. The Subject Property is currently zoned R-1-A Single Family Residential.
The Subject Property is currently a parking lot that will require certain development approvals to be able to construct single-family homes on the Subject Property. The closing of the Agreement will not occur until after receiving approvals from the City of Delray Beach for a Class III Site Plan Modification and a Major Plat. If the necessary approvals for the Site Plan Modification and Major Plat is not received, the CRA may terminate the Agreement.
The location of the Subject Property provides an opportunity to continue revitalization and stabilization efforts through infill development of affordable single-family housing, as indicated in the objectives of the CRA Redevelopment Plan.
After the Agreement with Lake Ida Church of Christ was executed, church leadership inquired whether the CRA was interested in acquiring an additional portion of the property. The proposed additional portion of property compromises 38,414 square feet directly abutting the Subject Property. The additional property would allow the CRA to build single-family affordable/workforce housing units on eight (8) 100’ x 40’ lots and the CRA would not have to request waivers from the City of Delray Beach to plat non-standard lot sizes. See Exhibit A - Location Map. Without the additional portion of property, the CRA would have to submit waiver requests within its Major Plat application to plat lots with a depth of less than 100’.
The Agreement for the Subject Property currently provides a total purchase price not to exceed $610,000, which breaks down to $20 per square foot. This First Amendment adjusts the total purchase price using the per square foot price. The additional portion of property will be an additional $158,400, and the total purchase price will be adjusted to not exceed $768,400.
This First Amendment will also amend Section 7(d) of the Agreement to extend the deadline to obtain Approvals for the Class III Site Plan Modification and the Major Plat from one hundred and eighty days (180) to two hundred and forty days (240) (an extension of 60 days) to account for the delay in submitting the applications due to the additional portion of property to be included in the applications. This extension will also require the Closing Date to be amended accordingly.
At this time, CRA Staff is requesting the CRA Board to approve the First Amendment to the Purchase and Sale Agreement with Lake Ida Church of Christ Inc. for the portion of property approximately located at 1300 Lake Ida Road to amend the portion of property to be purchased, increase the total purchase price not to exceed $768,400, and extend the Approvals Period and Closing Date each by 60 days, in a form legally acceptable to the CRA Legal Counsel; and authorize the CRA Board Chair to execute the First Amendment to the Purchase and Sale Agreement, and any related documents, in a form legally acceptable to the CRA Legal Counsel.
Attachment(s): Exhibit A - Location Map; Exhibit B - Purchase and Sale Agreement; Exhibit C - First Amendment to Purchase and Sale Agreement
CRA Attorney Review:
The CRA Legal Counsel drafted a Purchase and Sale Agreement in a form legally acceptable to CRA legal counsel.
Funding Source/Financial Impact:
Funding has been allocated from GL# 5610.
Overall need within the Community Redevelopment Area from Delray Beach CRA Redevelopment Plan:
Removal of Slum And Blight
Land Use
Economic Development
Affordable Housing
Downtown Housing
Infrastructure
Recreation and Cultural Facilities