Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute An Amended And Restated Land Development And Disposition Agreement With Park Road Development, LLC, For The Remediation, Sale, And Redevelopment Of Approximately 22 Acres Of City-Owned Property Generally Located At 1600 South Park Road.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
In 2018 the City Commission requested that staff pursue redevelopment opportunities for the approximately 30.58 acres of City-owned real property designated as a “brownfield area” under Florida Statutes Sections 376.77 - 376.85 which is generally located at 1600 South Park Road and currently houses the City’s Public Works compound (“Subject Site”). The purpose of the brownfield designation was to position the site for remediation, rehabilitation and economic development.
RFP No 4585-18-PB, Park Road Development Opportunity, was issued in 2018 and Park Road Development, LLC (“Park Road”) was selected in February of 2019 as the top-ranked firm to remediate and redevelop the Subject Site. On May 20, 2020 in accordance with City Charter Section 13.01, Limitation on the Sale of City-owned Property, the City Commission approved R-2020-113 and subsequently entered into a Land Development and Disposition Agreement (the “Initial Agreement”) with Park Road which provided the terms and conditions pursuant to which Park Road would purchase, remediate, and redevelop approximately 22 acres of the Subject Site (the “Development Parcel”).
Following the execution of the Initial Agreement, Park Road has conducted substantial environmental testing, inspections and assessments of the Subject Site required under Florida Brownfield Redevelopment Act for the remediation and redevelopment of the Development Parcel. Additionally, City staff and City consultants have worked with Park Road and its consultants to define the portions of the Subject Site to be retained by the City (the “Retained Parcel”) attached as Exhibit “A” to accommodate the administrative and operational needs of the City’s Department of Public Works.
Based on this work along with current market conditions, Park Road has finalized its proposed redevelopment plan and is diligently pursuing all necessary governmental approvals needed for the remediation of the site and execution of the redevelopment plan including environmental permitting, platting, land use, zoning, and design and site plan approvals.
The Initial Agreement contemplated that amendments would be needed as additional information regarding stormwater management and the environmental remediation required on the Subject Site became available. The Amended and Restated Land Development and Disposition Agreement (the “Agreement”) reflects the work that has taken place and evolution of the redevelopment plans. The Agreement includes plans for the demolition and replacement of the city fueling station, an increase in the Developer Fee per residential unit from $1500 per unit to $1650 per unit and the commercial square footage fee from $8.00 to $9.00 per square foot. It also clarifies time frames, provides for sub-developers, and restates the buyback provision and completion guarantee.
Fiscal Impact:
Through the redevelopment of underutilized public land into a mixed-use development, the City will experience increased property tax revenues and economic growth through the creation of approximately 531 temporary jobs and 164 permanent jobs on the site. This redevelopment of the former landfill site will expand the tax base by leveraging private investment to minimize financial risk to the City, while ensuring substantial long-term benefits for the City.
Revenue Budget Impact-The City will receive an estimated $3,451,000.00 in direct payments from Park Road, LLC for the sale of city-owned real property and the development of residential units and commercial square footage. Once the redevelopment is completed and stabilized it is estimated to generate additional property tax revenue of approximately $660,000.00 annually.
Capital Budget Impact-Funding for the construction of new public works facilities will be required in the FY 2026 5 year Capital Improvement Program. Park Road, LLC will contribute $300,000.00 for fueling facilities.
Recommended for inclusion on the agenda by:
Raelin Storey, Assistant City Manager