HomeMy WebLinkAboutsubmittal allocation agmt.2006-048C/2006 Carryover Allocation Agreement
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FLORIDA HOUSING FINANCE CORPORATION
2006 CARRYOVER ALLOCATION AGREEMENT
This 2006 Carryover Allocation Agreement (Agreement) by and between Florida
Housing Finance Corporation (Florida Housing) and Pinnacle Place, Ltd. (Owner) constitutes an
allocation of the 2006 Housing Credit dollar amount meeting the requirements of Section
42(h)(1)(E) and (F) of the Internal Revenue Code of 1986 as amended (Code). Unless otherwise
specifically provided, this Agreement and the terms used herein shall be interpreted in a manner
consistent with the requirements of Section 42 of the Code.
In consideration of the conditions and obligations stated in this Agreement, Florida
Housing and the Owner understand and agree as follows:
1. Florida Housing has reviewed the 2006 Application filed by the Owner of Pinnacle Place
(Development). Based on the evaluation of the Development identified in the 2006
Application, and the credit underwriting analysis, Florida Housing and the Owner
incorporate, by reference, the 2006 Application into this Agreement.
2. The Owner acknowledges that all the terms, conditions, obligations, and deadlines set
forth in this Agreement and the attached Exhibits, together with those that are
incorporated by reference, constitute material and necessary conditions of this
Agreement, and that the Owner's failure to comply with any of such terms and conditions
shall entitle Florida Housing, at its sole discretion, to deem the credit allocation to be
canceled by mutual consent of the parties. After any such cancellation, the Owner
acknowledges that neither it, nor its successors in interest to the Development, shall have
any right to claim Housing Credits pursuant to this allocation. Florida Housing reserves
the right, at its sole discretion, to modify and/or waive any such failed condition
precedent.
3. This 2006 Housing Credit allocation is not to exceed an annual amount of $2,435,000.00
for the Development.
If the Development consists of more than one building, this Agreement constitutes an
allocation of credit on a project basis to the Development in accordance with Section
42(h)(1)(F) of the Code. The "per building" Housing Credit amounts specified in
Exhibit A are solely for purposes of determining the total housing credit allocation for
the Development and do not constitute specific allocations made on a building by
building basis.
This allocation is expressly conditioned upon satisfaction of the requirements of Section
42(h)(1)(E) of the Code and upon the terms and conditions of this Agreement.
„�,Al7TED INTO hi.:
PUBLIC RCORD FOR
ITEM a Z Y-,14-o7.
2006-048C/2006 Carryover Allocation Agreement
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4. The Owner certifies it is the legal owner of the Development and that the following
information is true, accurate, and complete:
a. Owner Name: Pinnacle Place, Ltd.
b. Taxpayer Federal ID#: 20-1394615
c. Owner Address:
d. Development Name:
e. Development Address:
f. Florida Housing Development Number:
g. Total Number of Units in Development:
(Includes market rate units, set -aside units, and full-time employee units.)
h. Total Number of Buildings:
i. Total Number of Qualified Residential Buildings: 1
(as defined at Section 42(h)(I)(E)(ii) of the Code)
9400 South Dadeland Blvd.
Suite 100
Miami, FL 33156
Pinnacle Place
5600 NE 4th Avenue and 368
NE 57th Street
Miami, FL 33137
2006-048C
137
1
j. Type of Construction: New Construction
k. Demographic/Designation: Family/Large County
1. Anticipated Placed in Service Date: 12/31/2008
of the last constructed/rehabilitated building (Month, Day and Year)
m. Minimum Set -Aside: 40% of units at
60% of area median income
n. Total Set -Aside: 15% of the residential units at 33% of area median income
85% of the residential units at 60% of area median income
o. Extended Use Period: The Owner has irrevocably waived the "option to convert"
to market rents after year 14 and FURTHER COMMITS to an additional
compliance period of 35 years (fifteen years plus 35 additional years totaling SO
yars).
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2006-048C/2006 Carryover Allocation Agreement
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P.
Development Features and Amenities: The Development will be constructed or
rehabilitated in accordance with the 2006 Application and shall provide at a
minimum the Features, Amenities and Programs described in Exhibit B.
5. a. Site Control:
(i) The Owner shall demonstrate to Florida Housing that it has satisfied the
requirement of site control by including a copy of the recorded deed and closing
statements, or a copy of the executed long term lease agreement, together with
such other evidence or documentation that Florida Housing shall deem necessary.
These documents are to be incorporated into the Agreement as an attachment to
the Development's Legal Description, Exhibit C.
(ii) To meet the Site Control requirement, the Owner certifies to Florida Housing that
it owns the land on which the Development is to be built, or that the Owner is the
Lessee under a lease of the land on which the Development is to be built and
which has a term that does not expire prior to the expiration of the Extended Use
Period.
Site Control Election:
Owner shall initial only one of the following:
I elect to meet the Site Control requirement,
SUBMITTED INTO THE
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ITEM Pz.>I ONd-x-oi.
X upon the initial submission of this Agreement
or
within six months of the execution of this Agreement
In choosing the six month election, the Owner agrees to provide evidence of meeting the
requirement as a supplemental to the original Carryover Allocation Agreement without
amending the original document.
b. Cost Basis and Certification:
The Owner certifies that it shall incur at least 10 percent of the reasonably
expected basis (10% test) of the Development no later than six months from the
date of this Agreement. The Owner shall indicate below whether it chooses to
provide evidence that the 10 % test has been met upon the initial submission of
this Agreement or within six months of this Agreement's execution.
The Owner represents that its reasonably expected basis in the development (land
and depreciable basis) as of December 31, 2008 is $27,632,994.00
such that for purposes of the 10% test, it must have a basis in the Development
(land and depreciable basis) of at least $ 2,763,299.00 by no later
than six months from the date of this Agreement.
2006-048C/2006 Carryover Allocation Agreement
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Cost Basis and Certification Election:
Owner shall initial only one of the following:
I elect to meet the 10% test requirement,
X upon the initial submission of this Agreement
or
within six months of the execution of this Agreement
In choosing the six month election, the Owner agrees to provide an updated Exhibit D as
evidence of meeting the 10% requirement. This will be a supplement to the original
Carryover Allocation Agreement without amending the original document.
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEM Pz a\ ONqb1
The Owner shall submit the properly completed and executed Exhibit D as
evidence that it has or has not met the 10% test requirement.
Florida Housing's acceptance of any certification with respect to meeting the
10% test requirement, does not constitute a representation as to the satisfaction of
the requirements under Section 42(h)(1)(E) of the Code as binding on the part of
the Internal Revenue Service.
6. The Owner acknowledges that all qualified buildings within the Development shall be
placed in service on or before December 31, 2008. The final tax credit determination by
Florida Housing cannot be made until such time as all buildings are placed in-service
and the required Final Cost Certification has been submitted and approved by Florida
Housing. Florida Housing shall not issue any partial final allocations.
7. The Owner acknowledges and agrees to submit to Florida Housing, in accordance with
Rule Chapter 67-48, Florida Administrative Code: (i) written progress reports
evidencing the progress of the Development at least once each calendar quarter, and (ii)
the completed and required Final Cost Certification documents by the date that is 75
calendar days after all the buildings in the Development have been placed in service.
In the event the Owner fails to comply with the above requirements or fails to commence
construction within nine months from the effective date of this agreement, the Housing
Credits allocated within this Agreement shall be deemed returned to Florida Housing
pursuant to Section 42 (h)(3)(C) of the Code. Florida Housing, in its sole and absolute
discretion, may extend the time for compliance with these requirements upon receipt of a
written request from the Owner and if Florida Housing determines that the Owner is
making a diligent effort to comply.
8. Pursuant to Rule Chapter 67-53, the Owner shall coordinate with the Development's
assigned servicer, Seltzer Management Group, Inc, to have at least four on -site
construction inspections at the Owner's expense. The Owner shall insure that these
2006-048C/2006 Carryover Allocation Agreement
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SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEM i2. 3-1 ON
inspections are conducted at different intervals during the construction period wit one
of the inspections conducted prior to the Development being 15% complete and one
inspection conducted at construction completion.
9. The Owner acknowledges and agrees that Florida Housing shall further evaluate the
Development, pursuant to Section 42(m)(2) of the Code for a final housing credit
allocation determination upon Final Cost Certification, when all buildings in the
Development are placed in service.
The Owner further acknowledges and agrees that, if the carryover housing credit
allocation dollar amount, set forth in paragraph 3 of this Agreement, exceeds the amount
for which the Development is determined by Florida Housing to be finally eligible,
pursuant to Section 42(m)(2) of the Code, the amount of any such excess shall be
returned to and recovered by Florida Housing pursuant to Section 42(h)(3)(C) of the
Code for reallocation to other developments.
10. Upon the Owner's written notification to Florida Housing that the last building in the
Development is placed in service, Florida Housing's receipt of evidence that all
contingency items identified in Exhibit E of the Agreement have been satisfied, and
acceptance by Florida Housing of the Final Cost Certification documents which include
but are not limited to:
• the Final Cost Certification
• the monitoring fee
• copies of Certificates of Occupancy
• a copy of the Syndication Agreement
• an Independent Auditor's Report prepared by an independent Certified Public
Accountant
• photographs of the completed property
• the original, executed Extended Low -Income Housing Agreement in accordance
with the deadlines imposed above
Florida Housing shall issue an Internal Revenue Service Form 8609 for each building, in
accordance with the applicable federal law governing Housing Credit allocation under
Section 42 of the Code and Florida Housing program rules. The Extended Low -Income
Housing Agreement, with respect to the Development, shall, incorporate the terms,
conditions, and obligations undertaken by the Owner pursuant to paragraph 4 of this
Agreement.
11. This Agreement does not in any way constitute a representation, warranty, guaranty,
advice, or suggestion by Florida Housing as to the qualification of the Development for
Housing Credits, or the financial feasibility, or viability of the Development. The
Agreement shall not be relied on as such by any owner, developer, investor, tenant,
lender or other person or entity for any reason.
2006-048C/2006 Carryover Allocation Agreement
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If and to the extent that the allocation made pursuant to this Agreement is determined to
be invalid, due to an error made by Florida Housing in determining its Housing Credit
dollar amount for calendar year 2006, this Agreement shall be deemed to constitute a
binding commitment on behalf of Florida Housing to allocate an equal amount of
Housing Credits from its future Housing Credit Allocation Authority to the extent
allowed by Section 42 of the Code. Such binding commitment shall, in all respects, be
subject to the terms and conditions of this Agreement.
12. The Owner acknowledges and agrees to notify Florida Housing, in writing, in the event
of a sale, transfer, or change in ownership of the Development in accordance with Rule
Chapter 67-48, Florida Administrative Code.
13. Amendments to this document may be made by Florida Housing only upon written
request from the Owner and as Florida Housing deems necessary.
14. The date of this Agreement is the date it is executed on behalf of Florida Housing as
shown on the execution page hereto.
(THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.)
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2006-048C/2006 Carryover Allocation Agreement
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Acknowledged, agreed and accepted:
Owner:
By:
Title:
Address:
Date:
STATE OF Florida
--OWNER--
Pinnacle Place, Ltd.
By: PHG-Place, LLC, I s General Partner
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEM ia ON q --cn.
Signatur
David 0. Deutch
Typed or Printed Name
Vice President
9400 South Dadaland Blvd., Ste. 100
Miami, Florida 33156
COUNTY OF Miami -Dade
The foregoing instrument was acknowledged before me this / day of14.02.471e,2--,
2006,by David 0. Deutch as Vice President for
(Name)
Pinnacle Place, Ltd.
(Name of party on behalf of whom instrument was executed)
Personally Known X or Produced Id
Not
tification
(Type of Authority)
blic, State of
lorida
v w LISSET1E CANiIUA
;.; MY COMMISSION 1 DO 340988
•�� EXPIRES: September 8, 2008
Bonded Thu rrouwy P undenMars
Print, Type or Stamp Name
September 8, 2008
Date Commission Expires
2006-048C/2006 Carryover Allocation Agreement
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--FLORIDA HOUSING—
FLORIDA HOUSING FINANCE CORPORATION
227 North Bronough Street, Suite 5000
Tallahassee, Florida 32301-1329
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEM?z- ON q-.4-o7
By its execution of this Agreement, and based on the foregoing representations and
obligations, Florida Housing issues to the Owner a Carryover Allocation of 2006 housing credits
pursuant to Section 42(h)(1)(E) and (F) of the Internal Revenue Code, as amended, subject to
the conditions elsewhere in this Agreement. FLORIDA HOUSING HAS RELIED UPON
INFORMATION SUBMITTED TO IT BY THE DEVELOPMENT OWNER IN ISSUING
THIS CARRYOVER ALLOCATION. FLORIDA HOUSING MAKES NO
REPRESENTATIONS OR GUARANTEES THAT THE OWNER IS ELIGIBLE TO RECEIVE
THE CREDIT STATED HEREIN. THE INTERNAL REVENUE SERVICE DETERMINES
TAXPAYER ELIGIBILITY.
\r,v___t a , kYv \i°\4&J
Date: 12` 1 5-/c .p
Florida Housing Tax Identification Number: 59-3451366
STATE OF FLORIDA
COUNTY OF LEON
The foregoing instrument was acknowledged before me this /3 day of %t'eer, ,
2006 by Vicki A. Robinson as Deputy Development Officer of the FLORIDA HOUSING
FINANCE CORPORATION, a public corporation, the successor in interest to the Florida
Housing Finance Agency, on behf said Corporation. She is personally known to me.
otary Public
eSScU rPaA-4--2rscro
Print or Stamp Name
07
Date Commission Expires
*50. Y ry ODESSA PATTERSON
* * MY COMMISSION tDO214876
EXPIRES: May 22, 2007
7a, Bond,d Thu Budget NOWT SMvion
EXHIBIT A
#4111 qIN #Y:DG11:41N.0;EREA1C000/R
PROJECT NAME: Pinnacle Place
PROJECT ADDRESS: 5600 NE 4th Avenue and 386 North East 57th Street
CITY, STATE: Miami, FL
ZIP:
33137
FILE NUMBER:
2006- 048C
BIN;NUMBE t
tHFC.PROVIDES):
FLO6 -04801
INIMWDUJAL
'.ORSITE
81314 rgOA .. RESS ANP_ZI
PESGRIP7i9NIASM PLIGABL!
5600 NW 4th Ave, Miami, FL 33137
137
NC
23,067,449.79
Qp
29,987,684.73
ID
100%
29,987 684.73
gP
8.12%
FLO6
MONIVWI' CREDIT
'. ALLOCATEI
2,435,000.00
FL06
FLO6
FLO6
FLO6
FLO6
FLO6
FL06
FLO6
FLO6
FLO6
FLO6
FLO6
FL06
FL06
FL06
FL06
FL06
FLO6
FL06
FL06
FLO6
FL06
FLO6
FL06
FLO6
FL06
FLO6
FLO6
FLO6
FL06
FLO6
FLOG
FLO6
FL06
TOTALS
137
23,067,449.79
29,987,684.73
2,435,000.00
ALTHOUGH CARRYOVER ALLOCATIONS ARE PROJECT -BASED, THIS BREAKDOWN IS REQUIRED FOR THE ASSIGNMENT OF BIN NUMBERS. THE PER -BUILDING CREDIT ALLOCATION IS NOT
BINDING AT THE TIME OF FINAL ALLOCATION.
Must indicate if New Construction (NC), Rehabilitation (Rehab), or Acquisition (Acq.)
** If in a Qualified Census Tract (QCT) or a Difficult Development Area (DDA), multiply the building's eligible basis by 1.3 and enter the result.
***Enter the Applicable Fraction as a percentage, the smaller of the unit fraction or floor space fraction.
**" If the Owner has elected to fix the credit percentage pursuant to Section 42(b)(2)(A)(ii)(I), this credit percentage is fixed and binding upon all buildings in the project with respect to which the election is made, and
upon the Owner and all successors as Owners of those buildings in the project. If no such election has been made, this credit percentage is an estimate for pujr� Allocation Agreement.
NOTE: The total of the "Maximum Credit Allocated" column cannot exceed and should equal the amount of housing credits allocated to the Develo\d\d
D INTO THE
PUBLIC RECORD FOR
ITEMyz__)ONq -ar,-a-7.
SUBMITTED INTO THE
EXHIBIT "B" PUBLIC RECORD FOR
(PINNACLE PLACE/ 2006-048C)
DESCRIPTION OF FEATURES AND DI AMIETEM �2 • ON 4r
A. The Development will consist of: II����
137 High -Rise Apartment units located in 1 residential building.
Unit Mix:
Thirty-seven (37) one bedroom/one bath units containing a minimum of
553 sq. ft of heated and cooled living area
Eighty (80) two bedroom/two bath units containing a minimum of
800 sq. ft of heated and cooled living area
Twenty (20) three bedroom/two bath units containing a minimum of
1,066 sq. ft of heated and cooled living area
137 Total Units
The Development is to be constructed in accordance with the final plans and
specifications approved by the appropriate city or county building or planning
department or equivalent agency, and approved as reflected in the Pre -
Construction Analysis prepared for Florida Housing or its Servicer, unless a
change has been approved in writing by Florida Housing or its Servicer. The
Development will conform to requirements of local, state & federal laws, rules,
regulations, ordinances, orders and codes, Federal Fair Housing Act and
Americans with Disabilities Act ("ADA"), as applicable.
B. Each unit will be fully equipped with the following:
1. Air conditioning in all units (window units are not allowed; however, through -
wall units are permissible for rehabilitation).
2. Window treatments for each window inside each unit.
3. Termite prevention and pest control throughout the entire affordability period.
4. Peephole on all exterior doors.
5. Exterior lighting in open and common areas.
6. Cable or satellite TV hook-up in all units.
7. Range, oven and refrigerator in all units.
8. At least two full bathrooms in all 3 bedroom or larger new construction units.
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(PINNACLE PLACE/ 2006-048(PaQC RECORD FOR
DESCRIPTION OF FEATURES AND AME
ITEM ON Lk
9. Bathtub with shower in at least one bathroom in at least 90% of the new
construction non -Elderly units.
C. The Applicant has committed to provide the following features in each new
construction unit:
1. Marble window sills in all units
2. Steel exterior entry door frames for all units
3. At least 1.5 bathrooms (one full bath and one with at least a toilet and sink) in all
2 bedroom new construction units
4. Pantry in kitchen area in all units — must be no less than 20 cubic feet of storage
space. Pantry cannot be just an under- or over-the-counter cabinet
5. Dishwasher in all new construction units
D. The Applicant has committed to the following amenities in the Development:
1. Gated community with "carded" entry or security guard, or if 2 or more stories,
"carded" secure entry to building
2. Exercise room with appropriate equipment
3. Community center or clubhouse
4. Playground/tot lot, accessible to children with disabilities (must be sized in
proportion to Development's size and expected resident population with age -
appropriate equipment)
5. Library consisting of a minimum of 100 books and 5 current magazine
subscriptions
6. Computer lab on -site with minimum one computer per 50 units, with basic word
processing, spreadsheets and assorted educational and entertainment software
programs and at least one printer
7. Laundry hook-ups and space for full-size washer and dryer inside each unit
8. Laundry facilities with full-size washers and dryers available in at least one
common area on site
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SUBMITTED INTO THE
(PINNACLE PLACE/B2006-04PO B LI C RECORD FO R
DESCRIPTION OF FEATURES AND 111T S
,. 21ON4,-tr1.
E. The Applicant has committed to provide the following energy vativn
features for all buildings in the Development:
1. Air conditioning with SEER rating of 13 or better
2. Electric water heater with energy factor of .91 or better
3. Wall insulation of R-7 or better for masonry/concrete block construction.
4. All windows single -pane with shading coefficient of .67 or better
5. Ceiling fans in all bedrooms and living area in each unit.
F. The Applicant has committed to provide the following Resident Programs:
1. Welfare to Work or Self -Sufficiency Type Programs - The Applicant commits to
actively seek residents who are participating in or who have successfully
completed the training provided by these types of programs.
2. Homeownership Opportunity Program - Financial Assistance with Purchase of a
Home: The Applicant commits to provide a financial incentive for the purchase
of a home which includes the following provisions:
• the incentive must be applicable to the home selected by the resident and may
not be restricted to or enhanced by the purchase of homes in which the
Applicant, Developer, or other related party has an interest;
• the incentive must not be less than five percent (5%) of the rent for the
resident's unit during the resident's entire occupancy (Note: Resident will
receive the incentive for all months for which the resident is in compliance
with the terms and conditions of the lease. Damages to the unit in excess of
the security deposit will be deducted from the incentive.);
• the benefit must be in the form of a gift or grant and may not be a loan of any
nature;
• the benefits of the incentive must accrue from the beginning of occupancy;
• the vesting period can be no longer than 2 years of continuous residency; and
• no fee, deposit or any other such charge can be levied against the resident as a
condition of participation in this program.
3. First Time Homebuyer Seminars — Applicant or its Management Agent must
arrange for and provide, at no cost to the resident, in conjunction with local
realtors or lending institutions, semiannual on -site seminars for residents
interested in becoming homeowners.
4. Job Training — Applicant or its Management Agent must provide, at no cost to the
resident, regularly scheduled classes in keyboarding, computer literacy, secretarial
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EXHIBIT "B"
(PINNACLE PLACE/ 2006-048C)
DESCRIPTION OF FEATURES AND AMENITIES
skills or other useful job skills, which will be provided at least once each quarter.
If the training is not provided on -site, transportation at no cost to the resident must
be provided.
5. Resident Activities — These specified activities are planned, arranged, provided
and paid for by the Applicant or its Management Agent. These activities must be
an integral part of the management plan. The Applicant must develop and
execute a comprehensive plan of varied activities that brings the residents
together and encourages community pride. The goal here is to foster a sense of
community by bringing residents together on a regularly scheduled basis by
providing activities such as holiday and special occasion parties, community
picnics, newsletters, children's special functions, etc.
6. Financial Counseling — This service must be provided by the Applicant or its
Management Agent, at no cost to the resident, and must include the following
components: must be regularly scheduled at least once each quarter; must include
tax preparation assistance by qualified professionals; must include educational
workshops on such topics as "Learning to Budget," "Handling Personal
Finances," "Predatory Lending," or "Comparison Shopping for the Consumer."
7. Resident Assistance Referral Program - The Applicant or its Management Agent
will make available to residents information about services such as crisis
intervention, individual and family needs assessment, problem solving and
planning, appropriate information and referral to community resources and
services based on need, monitoring of ongoing ability to retain self sufficiency,
and advocacy to assist clients in securing needed resources. This service must be
provided at no cost to the resident.
8. Life Safety Training - The Applicant or its Management Agent must provide
courses such as fire safety, first aid (including CPR), etc., on -site, at least twice
each year, at no cost to the resident.
SUBMITTED INTO THE
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EXHIBIT C
LEGAL DESCRIPTION
(Please attach a legal description of the property)
Development Name: Pinnacle Place
Development Number: 2006-048C
Lots 1, 2, 3, 18, 19, 20 and 21, Block 3, of DIXIE HIGHWAY TRACT, according to the
plat thereof, as recorded in Plat Book 5, Page 24, of the Public Records of Miami -Dade
County, Florida.
SUBMITTED INTO THE
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