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HomeMy WebLinkAbout15520 Exhibit ADamian Pardo Board Chair I Omni C R A INTER -OFFICE MEMORANDUM Isiaa Jones Interim Executive Director TO: Board Chair Damian Pardo and DATE: February 8, 2024 Members of the CRA Board FROM: Isiaa Jones Interim Executive Director SUBJECT: 4/5ths Bid Waiver authorizing the allocation of additional grant funds to 14th Street Development, LLC for a fully restricted mixed -used development project located within the Omni CRA BACKGROUND The Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the CRA Redevelopment Plan ("Plan"). 14th Street Development LLC, a subsidiary of NR Investments, Inc., ("Developer") submitted a grant proposal request and a Tax Increment Rebate request to the CRA requesting the amount of $15,000,000.00 in grant assistance and 95% of the available developmental Tax Increment (TIF) collected by the Omni CRA to underwrite a portion of the costs to develop a mixed -use project within the Omni CRA. This was approved by the board in 2021 by CRA resolution CRA- R-21-0044. NR Investments, a for -profit entity, possesses a unique approach to this mixed -use development project that will consist of ground floor retail, ground floor commercial space and approximately 398 units of income -restricted housing. With the additional grant funding request of an additional $15,000,000.00 all 398 units will be income restricted. This proposal anticipates that the CRA will be extended through 2047 and as such rents will be restricted until 2047. This proposal is dependent on the successful extension of life of the CRA and the CRA being able to secure financing. This project also presents a unique approach and opportunity for a local government entity to collaborate on a below -market housing project. This is a way in which local government entities can leverage tax increment financing dollars and add equity to fill the gap in financing to achieve housing affordability in the area. RECOMMENDATION In light of the above -mentioned background information, the Grantee's past business successes and the CRA's identified objectives in the CRA's plan to reduce slum and blight, and in consideration of the Executive Director's pledge to allocate grant funding to further the Plan and activate the area, the approval of a bid waiver is recommended.