On Tuesday, the Tallahassee Community Redevelopment Agency (CRA) voted 5-0 to authorize staff to execute a memorandum of understanding to facilitate a $7 million loan for a 300-unit workforce housing development to be constructed downtown.
The agreement is with Global City, a real estate development organization that has completed a number of similar projects in the southeastern United States.
The application submitted to the CRA includes details for the construction of a 7-story, 300-unit development of workforce housing at 309 West Tennessee Street. Based on the conceptual layout, the development would consist of 10,000 square feet of ground floor retail, and a parking garage.
The mix of apartments would include 100 studio units, 100 one-bedroom units, and 100 two-bedroom units. The studio units are expected to average 400 square feet, the one-bedroom units would average 700 square feet, and the two-bedroom units would average 1,100 square feet.
According to documents, the targeted tenant preference would be given to police officers, firefighters, teachers, medical professionals, and public sector employees making between 80% and 140% of the area median income for Leon County. To reach stabilization, meaning 95 percent leased, Global City may need to lease units outside of the targeted tenant preference. This would occur only after diligent marketing efforts have been made to find workforce tenants.
The rental rates for the targeted tenants would be capped at 35 percent of household income. Global City is proposing a restrictive covenant be placed on the land, putting in place the rent limitations which could only be changed with the City’s approval. A property management company would be selected to manage the property, including approving tenants’ applications, and rental rates.
For the proposed development, Global City is partnering with Bethel Missionary Baptist Church (Bethel), who will be an equity partner in the development. Bethel owns the development site and is requesting $7.5 million for the property. Currently, the property is vacant and being used as a parking lot.
Financials
Based on the development budget, the total project cost is estimated at nearly $100 million. Developers are seeking seven percent (7%) of the cost from the CRA in the form of a $7 million loan from the Downtown (DT) District.
According to staff, a $7 million loan would allow the DT CRA to have adequate funds for other programs and projects through 2034.
In addition, Global City is seeking tax exemption from ad valorem taxes in order to seek tax-exempt bond financing. Once the development is complete the tax-exempt bond financing will assist in settling the construction debt and equity, and the CRA loan. The partnership with Bethel, a nonprofit organization, is needed to pursue such financing. As an equity partner, Bethel will own the multi-family development once tax-exempt bond financing is secured. This is anticipated to take place in early 2028.
Projected Timeline
Planning documents indicate the timeline for the project is in its preliminary stages. Once major financing is in place, a definitive schedule will be provided. As proposed, the estimated construction start date of the project is October 2024, with substantial completion by mid-2026. The project tentative timeline is as follows:
Joint Venture Closing – June 2023
Land Closing – October 2023
Permit Application – February 2024
Substantial Completion – July 2026
Stabilization – August 2027
The Tallahassee CRA Approves $7 Million in Assistance for Workforce Housing Development added by Steve Stewart on
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This sounds a lot like what they do in RUSSIA! We have housing here for workers of the government collective. Tell me I am wrong!
@ Snidely
LOL The FDLE didn’t do jack about the Leon county crime syndicate aka our local government. And they all live here!
That was a good one Whip, a real knee slapper… the FDLE pfft. haha
@Deepsix I would like to see the FDLE take a deep dive into the integrity of Tallahassee’s government functions. It looks like the deep state leftist favoring Agency of Corruption AKA the FBI is preparing to let Gillum walk on all but the most minor of charges. Most likely their intent will be a “lying to the FBI about who paid for a hotel room, Broadway show tickits, and a boat ride to the Statue of Liberty”. Charges likely will be dropped.
We need the FDLE not The FBI in my humble opinion.
Lets all hope there is another Miller and “Whitesnake” slithering around behind the scenes, Because the music never stopped in T-town….not for one minute.
And the vote buying continues… someone may want to investigate this ridiculousness because it wastes taxpayer dollars. I think there are laws against this.
This whole deal will crash in 1.5 years leaving another partial build-out like the previous CRA eyesore unfinished project near Cascades Park
Furthermore there is no way Bethel can possably live up to their handshake agreement to deliver local government the Black vote for many years to come. What with Blacks leaving the Democrat Party in record numbers never seen since the reconstruction era after the Civil War.
Now on top of that add in killer record inflation should Biden be reelected.
And what have we got???
Bad deal for Democrats and Tallahassee any way you look at it. That’s what we got.
A lot of selectively chosen words and phrases to describe yet another taxpayer-funded failure in the making.
Is the CRA (aka: Tallahassee Government) now open to funding any religious-based housing project? How many CRA Board Members attend Bethel I wonder? Will they include more taxpayer-funded food for the ever-growing population of diabetic and obese kids?
So much for the separation of church and state I guess.
Did I hear this correct? After development the property reverts back to the possession of a particular non profit called Bethel? RB Holmes? No property taxes for Bethel?
I swear to god, the corruption with non profits in this town are embarrassing. Remember when RB and Bethel wanted a loan from our local elected socialists in order to buy the old round Holiday Inn for this purpose? Didn’t RB “lobby” local elected leaders for a loan to buy what is now the Four Points?
No worries, he will go back to the gated Moore Pond million dollar property and not have to look at the drug addicts and worikng stiffs who love as regular citizens.
Paragraphs 5 and 6. Pure, unadulterated socialism.
We have tried so many big city approaches that have failed (Chicago’s Cure Violence for example), it should be no surprise that the local trough feeders push through more bad ideas. For goodness sake, let the market decide.
Just another example of a building block necessary to create another layer or board of Kleptocracy.
Way to go.
Forgot one:
Isn’t their a Building that was started downtown behind the Courthouse that is just a Slab of Concrete still? Why can they do something with that instead?
TO THE CRA:
So, I can assume that, sense they have completed a number of similar projects in the southeastern United States you checked those out to make sure they were built to Code, are fully Rented, Profitable, and the Loans are being paid back on time?
I can also assume that, sense it is not mentioned in the article that, you do NOT know what they will be renting the 100 studio units, 100 one-bedroom units, and 100 two-bedroom units for?
At $100 Million, not a single Room should ever be subsided with Tax Dollars.