Title
MOTION TO APPROVE THE DEVELOPER'S AGREEMENT BETWEEN THE CITY OF PEMBROKE PINES AND PEMBROKE ALMC REAL ESTATE, LLC FOR EXTENSION AND INSTALLATION OF WATER, SEWER, AND LIFT STATION FACILITIES.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. On January 30, 2019, the City of Pembroke Pines (City) entered into an agreement to sell +/-3 acres of land within the City Center development to Providence One Investments LLC (Providence Living) also known as Pembroke ALMC Real Estate,LLC.
2. Providence Living received site plan approval from the City Commission on April 15, 2020, subject to satisfaction of comments by the Environmental Services Division for water, sewer and lift station requirements.
3. Consistent with the terms of the agreement for purchase and sale, the City and Providence Living closed on the real estate transaction on February 16, 2022.
4. The Providence project was the first of three City parcels to be developed that make up the City Hall plat:
(1) Parcel A is +/- 6.5 acres being developed by HCA with a free-standing emergency room, that is currently under construction at the former City Hall site.
(2) Parcel B is +/- 3 acres under contract with Terra for the development of 90 market rate apartment units, which is currently under contract.
(3) Parcel C +/- 3 acres developed by Providence Living with 130 bed assisted living facility (ALF). The ALF opened in spring 2024.
5. The parcels at the City Hall plat required the assistance of a lift station. Since the Providence Living project was the first of the three parcels to be developed, Providence Living agreed to build the lift station to provide the needed water, sewer and lift station for all of the properties pursuant to the City’s design plan requirements. As a result, the City agreed to reimburse Providence Living for the difference between the City’s design requirements and their estimated usage.
6. Providence Living installed the needed infrastructure on the property, currently owned by the City, at a total cost of $1,094,477. The Lift Station was designed for 132,800 gallons per day (GPD) as requested by the City, and the Providence Living project will use an estimated 27,300 GPD or 20.6%, therefore their portion of the project is $225,462.26 and the City would be responsible for reimbursing Providence Living with $869,014.74 for the additional capacity related to the other parcels.
7. On August 3, 2022, the City Commission approved the ninth amendment to the purchase and sale agreement with Terra World Investments, LLC regarding the other parcel(s). As part of the ninth amendment, Terra agreed to reimburse the City for their pro-rata share of the infrastructure improvements prior to the Final Certificate of Occupancy.
8. In addition to the developer’s agreement, a cross-access agreement is being heard concurrently on this agenda.
9. Administration recommends adoption of the developer's agreement and reimbursement to Providence Living (Pembroke ALMC Real Estate,LLC).
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Besides the minimal annual cost of maintenance, which is less than $5,000, there will be a net zero cost as the $869,014.74 that the City will reimburse Providence Living, will be paid back to the City by Terra prior to issuance of the final certificate of occupancy.
b) Amount budgeted for this item in Account No: Item was not budgeted for. Funds are available in FY2024 account 471-535-6021-663122-0000-000-0000-00812 - Lift Station.
c) Source of funding for difference, if not fully budgeted: 471-535-6021-663122-0000-000-0000-00812 - Lift Station.
d) 5 year projection of the operational cost of the project: Estimated Cost to operate and maintain for one year = $4,050. Cost would increase 3% annually.
|
|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
|
|
|
|
|
|
Expenditures |
$4,050 |
$4,172 |
$4,297 |
$4,426 |
$4,559 |
|
Net Cost |
$4,050 |
$4,172 |
$4,297 |
$4,426 |
$4,559 |
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? N/A.