City Committee Recommends $7 Million Loan for Affordable Housing Complex

City Committee Recommends $7 Million Loan for Affordable Housing Complex

On Tuesday, Feb. 14, the Downtown Community Redevelopment Commission (DRC) voted to support a project seeking a $7 million loan to build a 300 unit complex dedicated to workforce housing on a vacant lot at the corner of Bronough and West Tennessee streets.

The support of the DRC moves consideration of the project to the Community Redevelopment Agency (CRA). The CRA is made up of all five Tallahassee city commissioners.

The complex will include 100 studio units, which are expected to average around 400 square feet, 100 one-bedroom units, which are expected to average around 700 square feet and 100 2-bedroom units which will average around 1,200 square feet. In addition to the residential units, the development will include 10,000 square feet of retail space and a parking garage.

Global City states that the property will be designed to an environmental sustainability standard of at least LEED Silver.

Global City has proposed that if the loan is approved, it would place a covenant on the land to include rent restrictions that could only be changed with the City’s approval. Rents will be capped at 35% of household income and could only increase as fast as household income increases.

The developer also indicated that marketing efforts will focus on public employees such firefighters, police officers and teachers as well as any other groups that the City wishes to benefit from downtown workforce housing. However, rentals would be limited to households making between 80% and 140% of the area median income for Leon County.

Global City is partnering with Bethel Missionary Church, the owner of the property, for the proposed development. Bethel is asking for $7.5 million for the vacant lot and the developer stated the land would be purchased before continuing with permitting and construction.

Once the proposed development is complete and bond financing is available to payoff construction debt and equity, including the CRA loan, Bethel will own the finished development.  This is anticipated to take place when the property stabilizes in late 2027 or early 2028.   

The estimated construction start date of the project is October 2024, with substantial completion by the first half of 2026. 

Global City states that no money will be drawn from the CRA loan until the project is fully financed based on a guaranteed maximum price contract with a reputable general contractor.

The proposed development would address two issues listed in the Downtown Redevelopment Plan, the need for affordable housing and the existence of vacant lots.

16 Responses to "City Committee Recommends $7 Million Loan for Affordable Housing Complex"

  1. Literally right across the street from the Fake Newsocrat’s current lair, in the nondescript building where the IRS used to be.
    Maybe RB Holme$ can add “future unemployed journalists” to his list of targeted no/low-income renters?

  2. I sure hope Bethel doesn’t gain anything over this. We already have that Northwoods debacle with them not paying taxes yet they want to sell land to a developer because they’re in financial decline. Live within your means. You’re already on the government teat. Now you want more. Because entitled.

  3. @ Snidely Whiplash…Desantas could start with having his staff respond to letters from Florida citizens He is my choice in the upcoming primary, but I score his performance so far a B. He didn’t ban the covid mask mandate immediately. Desantas must be aware how our liberal official’s love of raising taxes, the green new deal and being week on crime.

    If Governor Desantas cannot or will not protect us from local liberals, he will never protect us from liberal U.S. Senators and House Reps.

    None of his tax relief effects me.

    DeSantas must know the City’s plan to spend millions on ending gun violence while simultaneously reducing police presents and lowering the incarcertion of black men is absurd. But he will not lift a finger to stop it.

  4. There is grew agenda failure and waste written all over this. The cost of building a “LEED“ structure will push this right out of affordability for even the medium household income range.

    And if this isn’t a red flag, “ Bethel will own the finished development“, I don’t know what is. Our tax dollars will buy the land from a religious entity, build the structure with a religious entity, then turn control and ownership over to the religious entity.

    One wonders if this isn’t a clear violation of the concept of separation of church and state. How could they now turn down any other religious entity that decides to follow this precedence-setting action? Will the Jewish, Islam, Wicken, et al… be afforded the same opportunity?

  5. Why are your 2 Bedroom Units 1200 SqFt? My House is a 3 Bedroom 1.5 Bath and is plenty spacious and it is just 990 SqFt, NOT including the Garage. You could add an extra 50 Studio Units.

  6. Why are your 2 Bedroom Units 1200 SqFt? My has is a 3 Bedroom 1.5 Bath and is plenty spacious and it is just 990 SqFt NOT including the Garage. You could add an extra 50 Studio Units.

  7. If this project made sound fiscal sense the developers should have no trouble getting the loan from a traditional source. i.e. any local bank.

    So it has to be assumed that the taxpayers are giving the developers a better deal than the banks will. What kind of deal is it? Lower interest? Forgiveness in case of default?

  8. You’re not building a 300 unit building for $7million when the land cost is $7.5million. The description of proposed layouts looks like assisted living units. Assisted living units will pay 5 times the amount of regular apartments. As always, if the project is economically viable, private funds would be readily available.

  9. Gov. Desantis I know you traditionally practice a hands off policy with Tallahassee/Leon local government. And it is usually logical due to the reasoning that local voters willingly elect corrupt leftists time and time again. And yeah I agree in the logic that by their votes the locals keep pooping in their own nest and its best to leave them alone to smell the corruption of their own voteing practices.
    BUT its kind of getting out of hand and Tallahassee/Leon will serve as an excellant example to all 67 of Florida’s County and City governments as a lesson in honest public service if we conduct a sting operation similar to what the FBI did when they took Scott Maddox down.
    We have an Ace investigation Police force right here in Florida the FDLE. Bring up some agents from South Florida locals wont know to take on the role of contracters to bid on building out the 7 Mil project in the above article or any upcomming major Tallahassee/Leon project.
    There is no reason to call in the FBI when we have the FDLE and can set up all the construction credentials to make our FDLE agents “construction companies” appear legit in Florida.
    A good house cleaning in Tallahassee/Leon will go long and far to keeping the rest of Florida’s local governments honest and serving the public as they should.
    Thank you for any consideration,

  10. This is outright Kleptocracy. This is how our city and county are run. Whether it is Gazvini, Boulos, Bethel (RB Holmes), or Petrandis. A revolving door of money, power, or in the case of Bethel, promises of votes or threats of protests and cries of racism.

    Remember years ago that RB Holmes (bethel/NAN), were lobbying the city to be able to purchase the round Holiday Inn that is now the Four Points Sheraton. Bethel wanted to turn it into affordable and student housing, asking the city for your money to purchase the property. The city did not approve move. Other ‘considerations’ were given to Bethel.

    Look at the property Appraisers website and you will see the amount of real property Bethel owns on Tennessee Street and surrounding area. Millions of dollars of real property, ZERO taxes.

    It’s a scam.

  11. Clearcut…

    You are correct about Boulos and Ghazvini, but you are off track on Bethel is better. Bethel is a payoff for a ridiculous development to RB Holmes to pay for votes in a corrupt effort to secure votes for the mayor as he is going to run for governor and for Curtis Richardson’s next reelection campaign. I encourage voters to contact the FBI tip line and report this; it is full out corruption at the expense of taxpayers.

    If the city manager was doing his job he would report this to the FBI as if he does not he is complicit and a co-conspirator. This is the most ridiculous poor planned development effort disguised as a pay off to a leader in the black community for votes.

  12. I’m less conerned about a genuine loan to Bethel than I am the way we allow developers like Gazvini and Boulos to get away with environmental murder and taxpayers pay for infrastructure costs. Residents next to their projects are psychologically and financially negatively affected by their ugly clearcutting and zero lot line cookie-cutter penal colonies.
    The city and county accept Ghazvini’s and Boulos’ paltry mitigation efforts, while the natural systems their greeds devastate will NEVER EVER recover from their clearcuts.
    And the lifelong residents here are irrevocably damaged by these developers FOREVER impact negatively our lives.

    So with that said, the Bethel apartment complex is very smart infill…$7 million times better than a Ghazvini or Boulos every day of the week.

  13. If it’s just a $7 mil loan to Bethel, what’s the interest rate we will charge them?
    How long before the entire amount is repaid?

    “Rentals would be limited to households making between 80% and 140% of the area median income for Leon County.”
    • According to the most recent census, the median household income for Leon county is $57,359.
    • 80% of that is $45,887
    • 140% of that is $80,302.
    • Thus, the rent cap of 35% of income comes out to between $1,338 – $2,342 per month.

    I’m curious. Is this “affordable housing?”
    What public employee, such firefighters, police officers and teachers, would ever want to be squished into a site like that, potentially paying $1338/mo for a studio apartment on Tennessee St?

  14. The “DRC” and the “CRA” are artifacts of the Maddox/ Carter Smith shakedown operation and need to be abolished. Why are the taxpayers funding Bethel’s apartment complex?

    This is bs cronyism and its time for it to stop.

  15. This is the most ridiculous thing I’ve ever heard of and Bethel needs to be independent to do real estate deals within their own financial standing and quit sucking the life out of taxpayers. Vote buying scheme if I have ever seen one it has to stop. Someone’s going to walk away with a $7 million payout of taxpayers money. Which city commissioners are a member of this church? And there you have it

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