TO: CRA Board of Commissioners
FROM: Christine Tibbs, Assistant Director
THROUGH: Renee Jadusingh, Executive Director
DATE: September 24, 2024
Title
RESOLUTION 2025-01 - APPROVE A PURCHASE AND SALE AGREEMENT WITH THE DELRAY BEACH COMMUNITY LAND TRUST, INC. FOR THE PURCHASE OF FOUR PROPERTIES LOCATED AT 250 & 256 NW 8TH AVENUE FOR THE CONSTRUCTION OF AFFORDABLE/WORKFORCE HOUSING
Body
Recommended Action:
Recommendation
1. Approve a Purchase and Sale Agreement with the Delray Beach Community Land Trust, Inc. for the purchase of four properties approximately located at 250 & 256 NW 8th Avenue (Subject Properties) for a total purchase price of $20,000 for the construction of affordable/workforce housing, in substantially the same form as attached and in a form legally acceptable to the CRA Legal Counsel;
AND
2. Authorize the CRA Board Chair to execute the Purchase and Sale Agreement, and any related documents, in a form legally acceptable to the CRA Legal Advisor.
Body
Background:
On September 24, 2024, CRA Board meeting, the CRA Board awarded RFP CRA No. 2024-05 - the Disposition of the CRA-owned Vacant Properties for the Development of Affordable/Workforce Housing to the Delray Beach Community Land Trust, Inc. (CLT).
The four (4) Subject Properties being sold to the CLT are all located within CRA Sub-Area 4 and are further described in the below table:
|
Lot |
Property Address |
Parcel Control Number (PCN) |
Zoning Designation and Legal Description |
|
1 |
**250 NW 8th Avenue |
12434617250020010 |
R1A - Single Family Residential TOURIST NOOK DELRAY LTS 1 & 32 BLK B |
|
2 |
**250 NW 8th Avenue |
12434617250020010 |
R1A - Single Family Residential TOURIST NOOK DELRAY LTS 1 & 32 BLK B |
|
3 |
**250 NW 8th Avenue |
12434617250020300 |
R1A - Single Family Residential TOURIST NOOK DELRAY LT 30 BLK B |
|
4 |
256 NW 8th Avenue |
12434617250020310 |
R1A - Single Family Residential TOURIST NOOK DELRAY LOT 31 BLK B |
NOTE:
250 NW 8th Avenue is the street address for three (3) of the Subject Properties (Lots 1, 2, and 3).
*Lot 3 has its own PCN.
**Lots 1 and 2 share a PCN but are legally described as two (2) separate lots. At the time of closing, the lots will be conveyed separately (two (2) warranty deeds) which will result in the assignment of an additional PCN.
**For Lots 1 and 2, an application to the City of Delray Beach for the assignment of two (2) new street addresses.
Disposition of the Subject Properties helps the CRA meet one of its core objectives of providing additional affordable/workforce housing opportunities within the CRA District. Furthermore, as identified in the CRA’s Redevelopment Plan, developing the Subject Properties would also fall in line with the redevelopment strategy for the residential neighborhoods north and south of West Atlantic Avenue (Northwest and Southwest Neighborhoods of The Set) which includes construction of infill single-family housing on vacant lots.
Since the time of award, CRA staff and CLT staff have been working towards finalizing the Purchase and Sale Agreement. See Exhibit B.
OVERVIEW OF PURCHASE AND SALE AGREEMENT (PSA) TERMS:
• Total Purchase Price: $20,000 for the four (4) Subject Properties
• Effective Date: Date that PSA is executed by all parties
• Inspection Period: 45 calendar days commencing from Effective Date
• Application Date: 30 calendar days after Inspection Period ends, CLT shall submit Building Permit Applications for all four (4) single-family units
• Closing Date: Within 30 calendar days of obtaining building permits for all four (4) single-family units, the CRA and CLT shall close on the Subject Properties
• Groundbreaking: Within 60 calendar days after the Closing Date, the CLT shall commence construction on at least one (1) or more of the four (4) residential units
• Completion Date: No later than 545 calendar days after the Effective Date of the Agreement, the CLT shall complete construction and obtain certificates of occupancy for all four (4) residential units
At this time, CRA staff is requesting the CRA Board:
1. Approve a Purchase and Sale Agreement with the Delray Beach Community Land Trust, Inc. for the purchase of four properties approximately located at 250 & 256 NW 8th Avenue (Subject Properties) for a total purchase price of $20,000, in substantially the same form as attached and, in a form legally acceptable to the CRA Legal Counsel;
AND
1. Authorize the CRA Board Chair to execute the Purchase and Sale Agreement, and any related documents, in a form legally acceptable to the CRA Legal Advisor.
Attachments: Exhibit A: Location Map; Exhibit B - Homes to be Developed by CLT; Exhibit C - Purchase and Sale Agreement; Exhibit C - Resolution 2025-01
CRA Attorney Review:
The CRA Legal Counsel drafted a Purchase and Sale Agreement in a form legally acceptable to CRA legal counsel.
Finance Review:
N/A
Funding Source/Financial Impact:
N/A
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