The Town Council (“Town Council”) of the Town of Davie (“Town”), created the CRA pursuant to Sections 12-395 through 12-409 of the Town of Davie Code of Ordinances, as amended. In 1988, when the Davie CRA was created, this area was perceived as having the following characteristics:
- Deteriorating neighborhoods
- Dwindling commercial activities and job opportunities
- Concentration and persistence of criminal activities
- Inappropriate or obsolete land uses
- Inadequate transportation routes and means
- Extraordinary consumption of public services
- Conditions which lead to reduced property values, impairment of sound growth, and loss of private investor confidence
Over the past 30 years, the Davie CRA has made tremendous strides revitalizing the redevelopment area. The CRA has enhanced property values, upgraded infrastructure, promoted employment, added affordable housing, and improved quality of life.
El-Ad Broward Plaza LLC and El-Ad Broward Plaza II LLC (“El-Ad”) is proposing to redevelop the Broward Plaza (4803 – 4999 State Road 7) and Shell Gas Station (4801 State Road 7) located at the southwest corner of SR7 and Griffin Road. This project will also include a parcel of land owned by the Florida Department of Transportation that is being surplused (see Exhibit B for project map). El-Ad is proposing a project that will redevelop the property with a minimum of nine hundred thousand (900,000) square feet of gross leasable or saleable residential square footage consisting of a mix of studio, one-bedroom, two-bedroom and three-bedroom units, a minimum of twenty thousand (20,000) square feet of commercial use, surface and structured parking, and acceptable accessory uses and amenities.
This Town Resolution will consider the Developer’s Agreement negotiated between the Town, Davie CRA and El-Ad for this project (Exhibit A).
The project is proposed to be constructed in three phases (anticipated residential and commercial mix as of August 5, 2022 – see Exhibit D):
Phase 1 – Building A
· Residential units – 232 (209,665 square feet)
· Commercial space – 10,304 square feet
Building Permits by December 31, 2023
Building Certificate of Occupancy by December 31, 2026
Phase 2 – Building B
· Residential units – 261 (254,593 square feet)
· Commercial space – 10,267 square feet
Building Permits by January 31, 2026
Building Certificate of Occupancy by January 31, 2029
Phase 3 – Buildings C, D and E
Building C
· Residential units – 216 (207,896 square feet)
Building D
· Residential units – 213 (200,272 square feet)
Building E
· Residential units – 216 (207,896 square feet)
· Commercial space – 8,000 square feet
Building Permits by February 28, 2028
Building Certificate of Occupancy by December 31, 2031
The Developer’s Agreement includes the following terms and conditions related to the project incentives totaling $6.6 million broken down as follows:
CRA Incentives ($5.6 million)
· Three million dollars ($3,000,000) in the form of credits for Town impact fees, including but not limited to Police, Fire, Parks and Recreation, and General Government Impact Fees; Inclusionary Housing Fee; Engineering Permit Fees or Building Permit Fees (“Impact Fee and Permit Fee Credits”) that can be utilized for all three phases.
· Two million six hundred thousand ($2,600,000) towards the purchase of the Shell Gas Station property. This incentive is due to be paid by October 15 or issuance of Phase 1 permits, whichever comes later. This incentive shall be null and void by December 31, 2023.
Town Incentives ($1 million)
· Issuance of temporary certificate of occupancy for Phase 2 ($500,000)
· Issuance of temporary certificate of occupancy for Phase 3 ($500,000)
Therefore, the proposed total incentives are $6.6 million.
The CRA has obtained a fiscal analysis from Munilytics that estimates the net new revenue due to the Town and CRA from the El-Ad Project based on the anticipated residential and commercial mix as of August 5, 2022 (Exhibit C). The estimated taxable value is $340.4 million based on the plan of development which would make this project the largest taxpayer in the Town.
The current property taxable value is $8.9 million and will grow as follows based on the phased plan:
Phase 1 - $61.4 million – annual revenue increase to the Town is approximately $595,000
Phase 2 - $78.8 million – annual revenue increase to the Town is approximately $722,000
Phase 3 - $191.3 million – annual revenue increase to the Town is approximately $1,845,000
Total annual revenue increase is approximately $3,290,911 in first full year of the completed development factoring phasing and inflation. The current site generates an estimated $108,734 of revenue to the Town.
Please note that the Developer’s Agreement includes a commitment of 900,000 square feet of residential square footage (estimated at 900 residential units) and 20,000 square feet of commercial. If this amount was built, the total taxable value would be $268.7 million.
If the project is built based on the proposed project program, the Town will receive nearly $22 million of new revenue for the 10-year period starting FY2028. In addition, the Town would receive one-time development-related revenues of $7.4 million.
The Davie Town Council will consider the Developer’s Agreement with the El-Ad at their August 17, 2022 meeting.
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