AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER, OR DESIGNEE, TO EXECUTE THE ATTACHED FIRST AMENDMENT TO THE INTERLOCAL AGREEMENT WITH BROWARD COUNTY FOR LAND ACQUISITION AS PART OF THE HILLSBORO CORRIDOR REDEVELOPMENT AREA PROJECT.
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BACKGROUND:
The City of Coconut Creek was awarded Broward Redevelopment Program (BRP) Funding for Fiscal Year 2018 for the Hillsboro Corridor Redevelopment Area in the amount of $1,000,000, which consisted of both public improvements and land acquisition. The land acquisition project was funded in the amount of Three Hundred Sixty Thousand Dollars ($360,000).
Each project was subject to an Interlocal Agreement (ILA) between Broward County and the City of Coconut Creek, establishing the scope, terms/obligations, and reporting requirements. The terms and obligations included milestone dates for each project, which at this time, appear to be unachievable for a variety of reasons. As such, the City has requested a first amendment to each ILA to provide for more realistic and achievable milestone dates, and County staff is in agreement.
DISCUSSION:
Similar to the public improvement project, considerable progress has been achieved on the land acquisition project. The subject property was purchased and conveyed by the City to the new owner (Vista Gardens Ballroom, LLC). The project received plat and site plan approval and the building permit was submitted for the approved project. In accordance with the ILA, on October 21, 2021, the City submitted a request for reimbursement from the County consistent with the terms of the ILA. The City received the reimbursement on January 27, 2022.
At the time, staff was not aware of the impacts that the COVID-19 pandemic had on the new owner and their business plans. Staff has now been advised that the property owner will not be able to complete the project as anticipated. Subsequently, the owner has put the property on the market for sale. Currently, the ILA has a milestone date of three (3) years after the conveyance of title to the new owner (July 22, 2024) to provide documentation that the number of new permanent jobs were created. In the event the improvements are not completed as proposed within the three (3) years, the City will be required to return fifty percent (50%) of the payment. Given the steps that will need to be taken to work with a new property owner to obtain a new use and site plan approval, as well as building permits and construction, additional time is needed. City staff and County staff have agreed that extending the milestone date out three (3) years is warranted, given the regulatory processes involved with working with a new land owner altogether. Once this First Amendment is approved and executed by the City, the amended ILA will be forwarded to the County for approval and execution.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT: N/A