The request is for the City Council to authorize the City Manager to enter into a Transfer of Development Rights Density Credit Agreement with Port Richey Leased Housing Associates III, LLLP, in respect to the Anchor at Gulf Harbors project.

As you already know, for some time now the City has been working with Dominium Apartments in respect to the 27.7 acres of property located at the northeast corner of Marine Parkway and Sea Forest Drive. The property has a Comprehensive Plan Land Use Designation of HDR – 24 (High Density Residential – 24) which would allow for the development of a maximum of 667 multifamily units on the property. The property is located within the Coastal High Hazard Area and is considered a" Sending Site” The proposed plans for the property call for the establishment of 388 units of multi-family housing for senior residents aged 62 or over.

The owner of the property has indicated that they plan to restrict the allowable density on the property to 388 in perpetuity through a covenant. Therefore, they would like to place 279 multifamily units with an appraised value of $24,146,900.00 which is $86,548.00 per unit in accordance with an appraisal conducted by J.D. Wallace & Associates, Inc. and dated May 25, 2023, in the City’s transfer of development rights (TDR) bank.

In conjunction with the development of the project the City will assess various permitting, impact and other development fees in the estimated amount of $2,011,674.78 which will be due to the City from the developer, and which is specifically described in the Settlement Statement identified as Exhibit "C" in the attached Agreement.

In short, the purpose of this agenda item is to request your support of an arrangement which would permit the following:

• The calculation of value for the density credits will be based on the appraised value of the TDR’s
• The owner of the property would convey to the city its 279 density credits
• Density credits in the amount of 23.2 would be applied to pay the city fees in full
• The remaining density credits (255.8) would be donated to the city in the form of a charitable contribution in the sum of $22,135,225.22
  
  

The attached agreement outlines the terms and conditions of the arrangement. The City Attorney drafted the agreement and therefore is in accord that the document appropriately addresses the full scope of the proposed transaction.