Title:
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Approve and authorize the Chairman to execute the mutual termination agreement between 17-92 Five Points, LLC and Seminole County relating to the U.S. 17-92 CRA Redevelopment Grant Agreement; and approve the Resolution implementing Budget Amendment Request (BAR) #23-045 through the 17-92 CRA Fund, General Fund, Transportation Trust, and Fire Fund in the net amount of $376,420.04 to provide Tax Increment refunds for the amount committed the corresponding project; and recognize associated interest and interfund transfer revenues. Countywide (Tricia Johnson, Deputy County Manager)
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Division:
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County Manager Office - Economic Development
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Authorized By:
Tricia Johnson, Deputy County Manager
Contact/Phone Number:
407-665-7224
Background:
The U.S. 17-92 Community Redevelopment Agency (CRA) entered into an agreement with 17-92 Five Points, LLC on October 10, 2017 to catalyze redevelopment of the former Flea World property (4311 South U.S. 17-92, Sanford, Florida 32771).
Pursuant to the terms of the agreement, a $740,000 CRA Redevelopment Grant was awarded to the “Reagan Center Project,” for demolition, construction, and redevelopment on the property. Following site demolition, no vertical construction occurred on the property. The development authorization and permitting for the Reagan Center project no longer exists and 17-92 Five Points, LLC was administratively dissolved as of September 25, 2020. The property has subsequently been transferred and is now owned by Foundation RE Holdings, LLC.
The duties and responsibilities of the U.S. 17-92 CRA sunset on December 31, 2017. Since that date, no additional revenues have been collected, notwithstanding interest earned on the existing fund balances. The CRA took its final actions on December 12, 2017 to ensure funds allocated toward approved projects would be escrowed through project completion or termination date of outstanding agreements.
Consistent with Florida Statutes, following the dissolution of the CRA Board, all property owned by the preexisting special district government is transferred to the local general-purpose government, which also assumes all indebtedness and financial oversight of the 17-92 CRA Trust fund through its close-out.
The current fund balance for the 17-92 CRA Trust Fund, including recognition of $6,093.19 in interest earned to date, is $595,218.22. Upon execution of the Termination Agreement, there are no outstanding project commitments remaining within 17-92 CRA Fund.
Pursuant to interlocal agreement, the remaining balances are available for refund to the County and participating Cities. This $595,218.22 total refund will be made proportionately to each taxing authority that paid into the CRA. Refund amounts have been calculated on the attached cost table.
Board approval of BAR #23-045 will also recognize $373,201.82 in interfund transfers from the 17-92 CRA Fund to the General fund ($309,513.47); Transportation Trust ($2,380.87) and Fire Fund ($61,307.48).
recommendation
Staff Recommendation:
Staff recommends that the Board approve and authorize the Chairman to execute the mutual termination agreement between Foundation RE Holdings, LLC and Seminole County relating to the U.S. 17-92 CRA Redevelopment Grant Agreement; and approve the Resolution implementing Budget Amendment Request (BAR) #23-045 through the 17-92 CRA Fund, General Fund, Transportation Trust, and Fire Fund in the net amount of $376,420.04 to provide Tax Increment refunds for the amount committed the corresponding project; and recognize associated interest and interfund transfer revenues.