Council Considers Two Proposals for Old City Hall Site

Homestead City Council met with the two development groups that responded to its Request for Information dated August 10 for the old City Hall property on the corner of US1 and Campbell Drive.

The sixteen acre site was subject of a development inquiry this spring. That unsolicited proposal triggered state law requiring public notice of intent to dispose of government property for consideration of any other proposed site plans. This “163 Notice” does not obligate Council to sell or redevelop the property.

At its August COW meeting, Council reviewed five developmental responses to that notice. Staff then issued a formal request for more information, preparing comparison charts at Council’s direction of both responding developers’ designs.

Councilmembers acknowledge the site as the premier location for Homestead development. Both plans presented mixed residential and commercial uses.

Council’s main concern was the density of development in offering residences for market rate rental versus affordable housing options.

The other main concern was financial benefit to the City. Homestead still owes $8.1 million on the property requiring annual debt service of about $662,000 from the City budget. Debt repayment was an essential condition for development here.

Council’s vision included retaining annual payments for its budget, probably in a long-term ground lease or in potential taxes.

The Housing Trust Group (HTG) offered to build 70,000 square feet (SF) of commercial and office space, 352 parking spaces, and 200 residential units in two buildings five and six stories tall.

The Related Urban (Related) developer proposed 50,000 SF of retail space, 60,000 SF for an urgent care provider, a 104 room boutique hotel with a 10,000 SF conference center, 642 parking spaces, and 328 apartments in three buildings five-stories tall.

Apartments rentals are proposed at 50% market rate, 40% affordable housing, and 10% set aside for the local work force.

HTG spokesperson Dilia Tabora said residences are planned for a range of rents and a range of incomes, with the majority of units being above Homestead’s current market rates.

“Our proposal provides financial benefit to the City in extinguishing the debt and providing long-term participation for the City,” she said.

She estimated the annual City payment, depending on some residential variables, at $3.2 million over a 75 year ground lease and $3 million for 30 years on residential, or about $100,000 or $200,000 per year, in addition to extinguishing the debt.

Related offered to pay the City’s debt at closing on the basis of a 99 year ground lease, leaving the land a public asset.

Calculations of the City’s benefits take into account the savings from that settlement plus 15 per cent of net cash flow and an economic development component, over the entire lease term. Phase 2 plans to build the hotel offer a 10 percent net cash flow benefit.

Both developers acknowledge the site as “the new gateway to downtown” and “a visual landmark for the City”.

Amenities offered by each plan propose exciting components to City nightlife. Related plans to offer free space to local non-profit art organizations and micro-retail space for restaurants. HTG proposes a theater stage, wellness trail, and a large contribution to the Neva King Cooper Center.

Related plans feature luxury finishes to market rate units, a large central park, new trolley stop, bikeways, gallery space, and a mural garden.

HTG offered lower residential density, and outdoor amenities including areas for local artists with craft displays. HTG also promised hotel and convention space plans in coordination with Council’s directions.

Councilmember Erica Avila said “There’s a lot to digest. My decision will be made on jobs created, connectivity of this project with downtown, cohesive event space, green space, and the density.”

Mayor Steve Losner said that he agreed with Council comments that they were not ready for a final decision. He directed the City Manager to schedule the issue for reconsideration and invite both developers back. The Manager determined that the discussion would be scheduled for the November 17 Council meeting.

Council considered its legislative wish list for the 2022 session of the Florida Legislature as many listed projects were shared with the City’s lobbyists.

The City asked for tax relief from the Homestead-Miami Speedway of $611,899 a year, although that could require a state constitutional amendment. It also seeks state approval for a linear park in the Rails to Trails program for the old rail bed between NW 20th and SW 8th Streets and money for mitigation of its blight.

In addition, thirty-two projects of varying priority totaling $48 million were listed for City lobbyists’ consideration.

The list includes the full price of Phase 1 for the Sports Complex Park at $9.5 million, Losner Park expansion at $5.7 million, $5 million for wastewater treatment filter replacements, many electrical redundancy line requests, and $1.9 million for police body cameras that has already been funded.

Councilmember Patricia Fairclough-Staggers said, “It’s important for the lobbyists to engage and communicate with us. How can we best position ourselves with these requests? I suggest an analysis of funding to determine what best practices are.”

Councilmember Steve Shelley said Homestead always presents a giant package of requests.

“I suggest as a body we pick one, two, or three items to stand the best chance of success.”

The City Manager said the lobbyists would speak to Council on its list of priorities and consider how to be most effective.

Council considered the Public Art Master Plan and accompanying work plans presented for adoption by the Art in Public Places Board and the Development Services Department. The Board adopted the final plan unanimously on July 27.

Board chairperson Susan Sorrentino noted the original Ordinance was passed in 2010. She said that Council subsequently lowered funding to one-half percent of a development’s cost, although the County funds its art programs at 1.5 percent.

“Public art, something tangible, would be a major bronze life-size sculpture honoring Homestead’s historic settlement on City Hall plaza as our first project,” said Sorrentino.

Development Services staff walked Council through the process of the Board determining placement, scope and theme of an art piece, a call to artists through the Department and the County art lists, selection and recommendation by the Board in agreement with the Department, and final presentation and agreement by Council.

Final approval of the public art plan as required by the Ordinance will be on Council’s next meeting agenda.

In other business, Council accepted a $74,774 state cultural affairs grant for the Seminole Theatre operations, slightly larger than last year’s according to the City Manager, that requires a match to be met with costs already budgeted.

Sitting as the Community Redevelopment Agency, Council heard a request from the developer of the Shotgun properties for an amendment to allow more time to seek public financing. The developer, Centennial, determined the original request for the senior housing project would not qualify for the state’s nine percent low income housing tax credit program.

Centennial wants to seek financing through Florida’s Housing Finance Corporation’s SAIL program or other low income housing programs. The request could delay the start of the project by twenty-four months. The property has been vacant since 2006.

Council narrowly agreed to the request by a vote of four to three, Avila, Shelley and Losner voting no.