Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Development Agreement Among The City Of Hollywood, City Of Hollywood Community Redevelopment Agency (“CRA”), And Alta Hollywood, LLC Relating To The Redevelopment Of Portions Of Block 53 Within The Downtown District Of The CRA.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
On August 20, 2021, Alta Hollywood, LLC, an affiliate of Alta Developers, LLC, (“Alta”) acquired the property generally located at 401 N. Federal Highway and most of the adjacent parcels within Block 53 of Downtown Hollywood as further described in Exhibit A (“Subject Property”). Alta intends to redevelop the Subject Property as a multi-family residential development consisting of approximately 466 residential units in two towers connected by a parking structure, an amenity deck for the residents, and approximately 7,000 square feet of ground floor commercial retail space fronting Federal Highway in accordance with the approved site plan (“Project”).
The Project meets the priorities set forth in the Hollywood Downtown Community Redevelopment Plan to eliminate slum and blight by stimulating private investment and economic growth and, as approved, fully complies with the Federal Highway-2 zoning within the Regional Activity Center.
Since acquiring the property and proceeding through the City’s development review process, Alta has seen significant increases in the cost of the project due to rising interest rates and insurance costs and the continuing elevated cost of construction in South Florida. In recognition of the costs currently associated with the approved plans for the Project, as well as the desire to encourage the redevelopment of properties fronting Federal Highway envisioned as part of the Downtown Hollywood Community Redevelopment Plan, City and CRA staff are recommending a reimbursement of 95% of the City portion of the increased taxes that will be generated by the completed project (“TIF Reimbursement”) from the time the project is completed until November 30, 2031, with the cumulative reimbursements not to exceed $4,500,000.
Tax Increment Funds ("TIF") can be used for redevelopment, infrastructure, and other community improvement projects with the goal of stimulating private investment in previously blighted areas pursuant to Chapters 163 and 166, Florida Statutes.
Staff Recommends:
Approval of Resolution and the Development Agreement upon the terms and conditions set forth in the Agreement.
Fiscal Impact:
If approved the City/CRA will be responsible for reimbursing 95% of the increased tax increment, generated from the completed project, up to a maximum of $4,500,000. Reimbursements will begin upon project completion, anticipated in FY 2026, and continue until November 30, 2031 or until the $4,500,000 maximum reimbursement is reached, whichever occurs first.
Recommended for inclusion on the agenda by:
Jorge Camejo, CRA Executive Director
Raelin Storey, Assistant City Manager