TO: CRA Board of Commissioners
FROM: Elizabeth Burrows, Economic Development Manager
THROUGH: Jeff Costello, CRA Executive Director
DATE: September 11, 2018
Title
First Amendment to Site Development Assistance Agreement - Delray Oasis Business Park (1201-1235 N. Federal Highway)
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Recommended Action:
Recommendation
Approve the First Amendment to the Site Development Assistance Agreement with Delray Oasis Business Park, LLC, for the exterior project located at 1201-1235 N. Federal Highway.
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Background:
On June 22, 2017, the CRA Board approved a Site Development Assistance application from Delray Oasis Business Park, LLC, in support of an exterior improvement project that would update the façade of four of the five buildings on the Delray Oasis Business Park campus. The project called for a private investment of more than $329,000, upgrading the façade of the buildings to a Mediterranean-style architecture, complementing the design of the newer multi-family residential developments recently constructed in the North Federal Highway area. The approved funding agreement provided for a maximum award amount of $50,000, calculated at a 40% reimbursement of eligible costs, to be paid to the grantee by reimbursement in up to three installments.
Section 3.01 of the agreement called for the project to be complete within 365 days. While the project was substantially completed within that time frame, a portion of the work remained incomplete. Pursuant to the Section 4 of the agreement, the CRA previously issued a partial reimbursement payment to the grantee in the amount of $37,500 (75% of the approved funding award), for verified eligible expenses associated with completed improvements made before March 2018. Currently, the property owners-Mr. David Marulli and Mr. Howard Dean-are working with their general contractor to complete the remaining improvements. They are also working closely with City Building and Code Enforcement staff to address several other challenges recently identified at the site, related to changes of use associated with new tenants and public right-of-way improvements.
Considering the above information, the property owners have demonstrated a good faith effort to complete the improvement project and satisfy the terms of the CRA funding agreement. As such, staff believes it would be appropriate to extend the term of the funding agreement through December 31, 2018, allowing additional time for the improvements to be completed and for the grantee to provide sufficient documentation to the CRA to receive the final funding disbursement ($12,500). This would further the CRA mission by supporting a major exterior improvement project to multi-tenant commercial property along the North Federal Highway corridor, thereby enhancing the value of the non-residential tax base and encouraging new business activity within Sub-Area #5 of the CRA District.
Attachments: Exhibit A - Location Map; Exhibit B - Executed SDA Agreement with Delray Oasis Business Park; Exhibit C - 1st Amendment to SDA Funding Agreement with Delray Oasis Business Park
CRA Attorney Review:
N/A
Finance Review:
N/A
Funding Source/Financial Impact:
$50,000 previously allocated from General Ledger #7306 - Grant Programs - Site Assistance Program, $12,500 of which will be carryforward to the FY 2018-19 CRA Budget for this project.
Timing of Request:
N/A