Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 21-111, Public Hearing, Authorizing the Conveyance of Residential Real Property Described as Lot 9, Block 2211, Port St. Lucie Section Thirty-Three, According to the Plat thereof, as Recorded in Plat Book 15, Pages 1, 1A through 1V of the Public Records of St. Lucie County, Florida, to the Recipients of the Gold Star Family, Veteran’s Home Program.
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Submitted By: Alessandra “Alex” Tasca, Deputy Director, Neighborhood Services Department
Strategic Plan Link: The City’s Mission to be responsive to our community.
Executive Summary (General Business): As part of the City’s Gold Star Family, Veterans Home Program, this Ordinance approves the conveyance of real property located at 4602 SW Inagua Street, a city-owned vacant residential lot. The effectiveness of the Ordinance and subsequent conveyance will be contingent on the home being constructed by G.L. Signature Homes, LLC (“GL Homes”) and turned over to the City so that the City can donate the land and the home to the recipients of the Gold Star Family, Veterans Home Project.
Presentation Information: Carmen Capezzuto, Director of Neighborhood Services, will provide a brief overview of the project and introduce representatives from GL Homes who wish to share some details on their proposal to the City and the Sandburg family.
Staff Recommendation: Move that the Council approve and adopt the Ordinance authorizing the conveyance of 4602 SW Inagua Street and the donated, new construction, single family home to the recipients of the Gold Star Family, Veterans Home Program. The associated fees (e.g., permitting, plan review, mobility fee, impact fees, water/sewer, and other new home construction fees) for this project shall be authorized to be covered by the City’s Affordable Housing (128) Fund.
Alternate Recommendations:
1. Move that the Council amend the recommendation and adopt the Ordinance authorizing the conveyance to the recipients of the Gold Star Family, Veterans Home Program, as amended.
2. Move that the Council not approve the recommendation and provide staff direction.
Background: The City acquired this vacant lot on August 25, 2008, for the Becker Road Expansion Project. The lot was determined to not be needed for that project and was dedicated to NSD for affordable housing opportunities. The City of Port St. Lucie proposes to partner with GL Homes to donate a payment-free home to a Gold Star family. The City proposes that the property located at 4602 SW Inagua Street be used for this donation. GL Homes intends to construct a 2,435-square-foot, 2-bedroom home with den, with estimated value of approximately $375,000. In collaboration with the Saint Lucie County Veteran Services Office, the City has reviewed and verified the income and overall eligibility of the applicants.
On January 4, 2021, the applicant field was narrowed down to two Gold Star families. A lottery drawing took place at City Hall on January 21, 2021, where one of the two qualified applicants was awarded the program’s first, donated, newly constructed, single-family home to the lottery winner. Following this project, the City Council agreed by consensus to look for another construction partner to complete a second home for the other income-qualified Gold Star family. After learning about this opportunity, GL Homes presented a proposal to build a home and donate it, along with the City, to the Sandburg family. The Gold Star Home Donation Program information, criteria, and selection process was approved by City Council at the 11/23/2020 meeting in Agenda Item #2020-908.
Staff will look to continue the program in subsequent years if developers continue to show interest in partnering with this City on this type of project. A new round of applications will need to be solicited for any future projects that are identified. No qualified applicants remain on file for this round of programming.
Issues/Analysis: Staff received a written letter of intent from GL Homes (attached). This Ordinance once approved will facilitate the completion of all the necessary steps to execute the project and convey the newly constructed home to the approved Gold Star Family.
Financial Information: The future owners will agree to a 25-year payment free mortgage via a Restrictive Covenant to be recorded in the public records. A draft “Restrictive Covenant” is attached in this agenda item. The City would receive a prorated payback of 4% of times the number of years remaining on the mortgage if the property is sold within the next 25 years. On April 2016, City Council approved Resolution 16-R24 amending the Development Order for the Western Grove Development of Regional Impact originally approved through Resolution 06-77 in February 2007. The amended resolution under General Condition 54 (Housing) pertains to an affordable housing assistance fee that developers pay for each residential unit constructed on the Property, payable at the time of building permit application, into an affordable housing trust fund established by the City. As per Resolution 06-77, it was determined that the funds should be disbursed in order to encourage affordable housing through such means as (a) acquisition of land; (b) a program of down payment assistance; (c) rehabilitation of existing affordable housing; (d) construction of new affordable housing by private developers or not-for-profit entities; and (e) other appropriate affordable housing strategies. Per City Ordinance, Chapter 100 - Local Housing Assistance Trust Fund, the Neighborhood Services Department shall be the department responsible for implementing the local housing assistance program including the Local Housing Assistance Trust Fund Sec. 100.04. The City will provide funding from the Affordable Housing Trust Fund to cover the costs of all impact, permitting, plan review, and other ancillary new home construction fees. These costs are estimated at $25,000.
Special Consideration: Following construction of the home on the Property, an appraisal will be obtained so the repayment provision of the Restrictive Covenant, which will be associated with the property once conveyed, can be calculated based on the value of the Property, including the newly constructed home. G.L. Home proposes to complete construction of the home by July 4, 2022 and a celebration would be planned for the family upon completion.
Location of Project: 4602 SW Inagua St. Port St. Lucie, FL 34953.
Attachments:
1. 4602 SW Inagua St. Property Card
2. GL Signature Homes Letter of Intent with Floor Plan
3. Brendon W. Sandburg Gold Star Family Bio & Story
4. City Ordinance Chapter 100 - Local Housing Assistance
5. Proposed Ordinance
6. Draft Declaration of Restrictive Covenants
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 7344
Legal Sufficiency Review:
Reviewed by Margaret Carland, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.