“The Bohemian”: A CRA redevelopment proposal for the downtown in Lake Worth Beach.

The following information comes from the January 14th meeting of the LWB Community Redevelopment Agency (CRA).

Memorandum

TO: Chair, Vice-Chair and Members of the Board

FROM: Joan C. Oliva, Executive Director

DATE: January 14th, 2020

SUBJECT: Financing Agreement between 1017 Lake Ave. LLC and the LWB CRA

EXPLANATION:

The development of the City’s western downtown area continues to be a priority for the CRA. The two main thoroughfares, Lake and Lucerne, saw little development before the CRA infused grant dollars and assisted developers. Over the past several years, CRA assisted developments in the area include the Urban Arts Lofts, The Hatch, West Village, 1013 Lucerne, the Downtown Shops and others.

In 2018 the CRA helped attract the MID development to Dixie Highway. This project, by Affiliated Development will bring 230 new, one and two-bedroom units and 9000 square feet of retail to the Dixie Highway corridor. The founding partners of Affiliated, Jeff Burns and Nick Rojo, approached CRA Staff in fall of last year with a new mixed-use development concept.

Affiliated has a contract to purchase a 2+ acre site bounded by the FEC railroad on the west, East Coast Street on the east and Lake Avenue to the north and the remaining Padron site (201 East Coast Street) to the south (Exhibit “A”). The proposed plan would include 186 residential units, ground floor retail, parking and room for a future train station platform (Exhibit “B”).

Click on Exhibit A to enlarge:

Note the area hash marked from Lake Ave. south to 2nd Ave. South; this is the site for the proposed Affiliated Development project called “The Bohemian”.

The following two images are Exhibit B:

The CRA memorandum continues. . .

One of the CRA’s goals in the Redevelopment Plan is to encourage market rate housing opportunities in the redevelopment area. Affiliated’s new project, The Bohemian, will provide new, modern housing opportunities in the district that will attract professionals and couples who will support not only the commercial component of the project, but also businesses in the downtown, as well as the artisanal area. The Bohemian also provides an opportunity for the attraction of additional restaurants, retailers and much needed new housing to the area, making Lake Worth Beach’s downtown a destination for art, entertainment and shopping, while also providing choices for urban living enthusiasts.

This project addresses other goals and objectives in the CRA’s Redevelopment Plan including:

• Create programs for land development and property rehabilitation, using financial or other incentives, to facilitate new investment in the district
• Work creatively to provide incentives for private sector participation in redevelopment projects and programs
• Elimination of conditions that decrease property values
• Facilitation of new investment in the redevelopment district
• Establishment of a safe, functional and aesthetically pleasing community environment
• Identify and market areas where private interests can develop housing and necessary support facilities in the Redevelopment Area
• Encourage efforts toward building housing in the Redevelopment Area
• Initiate infill housing development

Staff recommends the CRA Board consider giving assistance to the project in three ways. First, the CRA would provide immediate funding from our already budgeted program/economic development and commercial grant lines to assist with pre-development and infrastructure costs. Staff recommends providing the TIF subsidy over a three year period. The CRA could grant a total of $800K this fiscal year. To provide the subsidy needed, the CRA is also being asked to provide an additional $400K for the next two fiscal years, bringing the direct appropriation total to $1.6M. Affiliated is also requesting $200K in Neighborhood Stabilization Funding. These funds can be used in the future for demolition and/or to help subsidize the portion of workforce units that may be provided.

Lastly, Staff recommends awarding 1017 Lake Ave. LLC with a tax-increment rebate. The CRA only receives increment from two of the nine taxing entities in the County, the City of Lake Worth Beach and Palm Beach County. For purpose of this award, the current increment distributed to the CRA would be frozen. Property taxes, over the next eleven years, would be paid by Affiliated to the tax collector. The CRA portion (the additional increment created after the project reaches stabilization) once received, would then be reimbursed to the developer. The project is estimated to produce over $6M in taxes by 2030. Of that the CRA would receive $1.9M. The eleven year term under consideration is directly related to the life span of the CRA. Because the CRA amended their boundaries in 2001 the sunset date for the Agency is 2031. A spreadsheet showing the annual increment and payments is attached for your review as Exhibit “C.”


[To look over exhibits C and D click on this link.]


A financing commitment is needed at this time for the project to move to the next step. A copy of the commitment is included for the Board’s review as Exhibit “D.” The letter details the CRA commitment to the project while also granting authority for the Chair, Vice Chair and/or CRA Director to sign a future development agreement with 1017 Lake Ave. LLC provided no material changes are made.

REQUEST:

Staff requests the Board approve the funding agreement with 1017 Lake Ave. LLC and give authorization to two of the three signers, the Chair, Vice Chair and/or the Executive Director to approve the future development agreement, once complete.


End of memorandum.


Note that The Bohemian redevelopment project was passed at the CRA meeting on January 14th and the next step will be the Planning and Zoning (P&Z) Board. At this point it is still to be determined whether or not this will be an item up for discussion at the City Commission. The P&Z may give the final go-ahead approval to proceed with The Bohemian.

Stay tuned.