CITY COUNCIL AGENDA ITEM
Memo Date: 9/30/2024.
Agenda Date: 10/8/2024.
Prepared By: Kristin Eick, Assistant City Attorney
Through: Stockton Whitten, City Manager
Requested Action:
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Approve the Amended and Restated Development Agreement and Restrictive Covenant Allegra at Cocoa.
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BACKGROUND:
The City of Cocoa and Allegra at Cocoa, LLC, entered into a Pre-Development Agreement and Restrictive Covenant on September 14, 2023. Allegra at Cocoa, LLC sought to develop up to 312 multi-family units on SR 524, and the City previously on January 10, 2023, approved via Resolution 2023-008 Allegra’s request for authorization to proceed with the project in accordance with Florida Statute Sections 166.04151(6) and 420.0004 and to permit multifamily residential as an allowable land use on the property despite its current Commercial future land use designation and General Commercial zoning.
At the time of the Pre-Development Agreement’s execution, Allegra at Cocoa, LLC was a contract purchaser of the property and the sale had not yet closed. The Pre-Development Agreement provided that it would not be effective until after the sale of the property to Allegra at Cocoa closed and the Agreement recorded. Further, the site plan for the multi-family project had not yet been approved.
Allegra at Cocoa, LLC closed on the property on June 6, 2024, and the Special Warranty Deed is recorded in the Official Records of Brevard County, Book 10084, Page 1715. However, at the same time and prior to recording the Pre-Development Agreement, Allegra also executed a Mortgage, Security Agreement, and Assignment of Rents (“Mortgage”) to International Bank of Commerce.
The Amended and Restated Development Agreement and Restrictive Covenant now includes a Joinder and Subordination by International Bank of Commerce, subordinating the Mortgage to the City’s Agreement. Further, additional changes were made to reflect that the sale of the property to Allegra has closed, that the site plan has now been approved by the Planning and Zoning Board, and that Allegra at Cocoa no longer intends to place a conservation easement on the property that will be conveyed to the City. Additional minor changes were made, including that Allegra at Cocoa, LLC is now formed in Delaware.
All other major obligations remain unchanged, including the requirement to convey the 11.49-acre portion of the property to the City as well as to maintain the period of affordability for at least 10% of the units for a period of thirty (30) years.
PRIORITY AREA CONNECTION:
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BUDGETARY IMPACT:
Budgeted N/A
If not budgeted, is amendment/transfer attached? N/A
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PREVIOUS ACTION:
January 10, 2023 - Resolution 2023-008 Approved Multi-family affordable housing use on Commercial Property
September 14, 2023 - Pre-Development Agreement Executed
June 6, 2024 - Allegra at Cocoa, LLC closed on the property
RECOMMENDED MOTION:
Recommendation
Approve the Amended and Restatement Development Agreement and Restrictive Covenant with Allegra at Cocoa, LLC.