EASTWOOD

VILLAGEA Public Private

Partnership for Infill

Redevelopment

Florida Gulf Coast

University

February 26, 2010

Location Map

Site Aerial

Wellfield Redevelopment

• Site was former shallow aquifer wellfield for city

• City bermed property and pumped river water into

canals which recharged the surficial aquifer

• Process created low quality Mellaleuca infested

wetlands

• Used site for multiple other purposes including

dumping arsenic laden lime sludge from the water

treatment process

Today’s Presentation

• City and Bonita Bay Group Goals

• Vision & Design

• Major Components of Project

• Deal Structure

• Obtain permitting assistance on approximately 500 acres on the

Old Wellfield site in order to establish a viable developable envelope

and environmental permitting strategy

• Establish a public/private partnership to design, permit, and

construct improvements to the Eastwood Golf Course.

• Establish a public/private partnership to design, permit, construct

and market a quality residential community with a focus on attracting

a diversity of professionals and families. Establish a public/private

partnership to design, permit, construct and market a quality

commercial component.

• Select a team that has leadership in community involvement,

consensus building, financial stability, innovative funding solutions,

and a track record of developing projects that improve the

community tax base.

Project Goals from Original RFQ

P

MLK Veronica Shoemaker corridor study funding

Enhancement of CalusaNature Center

Utilization of real estate asset

Other City Goals

Diversity of price points including mechanism for workforce housing

Cleanup of Brownfield site

Protection of wellfieldfacilities

Extension of Hanson and Edison

BBG Goals

• Diversify community portfolio

• Diversify geographically and target new market

demographic

• Successfully develop through a public private process

• Do something good for Fort Myers

• Make a reasonable profit

• Develop a really cool TND community

Our Vision for Eastwood Village

• Gateway into the City of Palms

• Promotes street connectivity, enhances the

City's infrastructure. Creates new public

amenities.

• Traditional Neighborhood Design

• Pedestrian oriented

• Connects diversity of people through a mix of

housing types, prices, amenities, and

commercial and retail uses.

Vision for Eastwood Village

TND and new Urbanism

TND and New Urbanism are about…

• connecting the street into a network so that people

can readily reach other sections of their neighborhood or

town.

• connecting residents to convenient shops and services

by encouraging retail, office, institutional, and

recreational development within walking distance of

where people live.

• connecting individuals to one another by insisting that

walkways be sociable, usually running alongside

narrow streets, rows of trees, front porches, balconies,

terraces or other inviting exterior elements of street

fronted houses.

TND and new Urbanism

TND and New Urbanism are about…

• connecting the divide of age, household size, and

economic status by mixing together housing types of

assorted sizes and prices.

• connecting new developments to existing or potential

future transit

• connecting individuals to civic ideals and public

responsibilities.

summed up in a single concept – ”connection” .

From-Urban Land Institute’s book,

“Valuing the New Urbanism”

Typical TND Streetscape Images

Typical TND Commercial Images

Community Scale Comparison

Concept Plan

¼ mile=5 minute walk

The Site Plan STREET NETWORK

Community park edge

character

Residential fronted street character

Calusa Nature Center

Edison Ave

Prepared for Flemington, NJ

Prepared for Central City Tampa

Central

Lake

The Site Plan OPEN SPACE

Lake Front street and

Pathway Character

Community Park &

Soccer Fields Character

Calusa Nature Center

Edison Ave

Elementary

School

Community Pool,

Tennis & Amphitheater

Complex, First Tennis

program.

Soccer

Fields

(Seasonal

Park/City)

Middle

School

Multi-Purpose

Fields First Tee Program

Resident

Recreation Center

Typical

Neighborhood

Park

Lakefront

Linear Park

& Pathway

System

Village Center

Waterfront Park

Prepared for City of Lakeland, FL

Prepared for City of Orlando

Central

Lake

The Lake Promenade Concept

The Site Plan CENTRAL LAKE SCALE COMPARISON

The Site Plan NEIGHBORHOODS

Typical neighborhood

park character

(alley-loaded homes)

Calusa Nature Center

Edison Ave1 2

3

Prepared for Baldwin Park

Central

Lake

Preliminary Site Plan

Elementary School

Community Pool, Tennis

& Amphitheater Complex,

First Tennis & First swim

Program

Soccer Fields

(Seasonal Park/City)

Middle School

Multi-Purpose Fields

First Tee ProgramCalusa Nature Center

Resident Recreation Center

Typical Neighborhood Park

Residential Blocks

Mixed-use Village Center

Edison Ave

Central

Lake

Village Center Preliminary Site Plan

Calusa Nature Center

Edison Ave

Central

Lake

Village Center Preliminary Site Plan

Density Benefits of TND: Eastwood

Conventional Plan With 1063 units and golf expansion

Density Benefits of TND: Eastwood

• 2300 units on 550 acres

• Development costs 45%

higher

• Additional 1237 units

(46% increase)

• Regulatory agencies provided

strong support

• Environmental benefits

include reduction of sprawl

and greenhouse gases

Project Development Components

• RFQ process (2003)

• Planning/Design/Positioning

• Entitlement process

• Brownfield Site Remediation Agreement

• Wetland Mitigation through offsite enhancements and interlocal

with Lee County on 2020 lands

• Eastwood clubhouse construction agreement

• First Tee interlocal agreement

• Land swap with school board

• CRA & TIF

• Mortgage Assistance Program

• Purchase and sale agreements and extension amendments

( 2004 through 2009)

Planning and Design

• Decision on TND community design by city

• Stakeholder interviews

• 3 day design charette with Glatting, Dover Kohl, Seth Harry, TSW

• Extensive tours of comparable communities including taking city

staff to Baldwin Park to meet with Orlando city staff and developer

• Detailed design of community and product mix based on research

in Florida and Southeast US

• Worked with city staff on detailed TND engineering criteria and

street cross sections

• Architectural and landscape architecture theme studies

Entitlements

• Comp Plan Amended

• CRA Established

• Clubhouse construction approved

• TND zoning Approved

• SFWMD ERP approved

• BSRA Completed

• Wetland Mitigation Approved

• ACOE permit Issued

Brownfield issues

• Lime Sludge with Arsenic

• Lime Slurry with Arsenic

• Gun ranges with heavy metals

• Hydrocarbons in soil from fire training facility

• Chemicals in soil at nursery

• $2.4 million clean up estimate

Remediation Agreement

Brownfield Site Remediation

Agreement

• Extensive contamination analysis

• Agreement with DEP would

prescribe methods for cleaning up

site.

• Absolves developer and city from

future liability when clean up

certified

• Linked to SFWMD permits

Brownfield clean up funding

EASTWOOD VILLAGE: CITY'S ESTIMATED BROWFIELD EXPENSES

Based on City/BBG Financial Assessment 2009

Offset by Builders 0.5% contribution

Remediation

Area

Approximate

Year

Residential

Units

City Funds

from 0.5%

Builders

City's

Brownfield Cost

Responsibility

Net to City after

Brownfield

Expenses

A 2012 or 2013 103 100,000$ 16,647$ 83,353$

B 2019 1600 2,000,000$ 740,000$ 1,343,353$

C 2020 380 600,000$ 1,104,579$ 838,774$

Build Out 417 900,000$ -$ 1,738,774$

Wetland Mitigation

• 350 acres of impacts to very low quality wetlands

• Multiple approaches to wetland mitigation explored

including enhancing Calusa Nature Center habitat

• Prairie Pines Preserve was selected for $5.5 M

enhancement project

• Interlocal agreement between city and county

negotiated

Eastwood Clubhouse

• Very old and dilapidated Clubhouse at public facility with positive

cash flow

• City originally desired additional 9 to 18 holes but decided not to

expand golf

• Decided to build new clubhouse, parking and site development

• BBG paid for project and did management of design and

construction process for no fee

• Out of pocket construction costs of $2.8M would be treated as

credit for future land purchase by BBG

First Tee Proposal

• County Parks and Recreation desired First Tee youth golf training

facility at Eastwood.

• County had 30 acres adjacent to Sox training facility that could be

deeded to city which BBG would then buy to fund construction of

First Tee facility ($1,050,000)

• Design and cost estimate was provided by BBG at no charge

• Interlocal between city and county was developed and approved

by city council

• Management staff changes at city and county put idea on hold

indefinitely

School site negotiations

• School board projected need for middle and elementary schools

• Innovative shared facility concept between two schools and

proposed city soccer field park was developed

• City wanted to own vacant school board building (Adams Building)

to use as consolidated city offices

• Negotiations occurred and appraisals were done

• Cost differentials and reduced student enrollment projections put

land swap on hold

Schools and Recreation Preliminary Site

Calusa Nature Center

Edison Ave

Central

Lake

CRA and TIF

• Established a public funding mechanism so that benefits of

Eastwood are open to the general public.

• Provides funding for Brownfield clean up and MAP,

• Provides funding for other public expenditures associated with

Eastwood (golf improvements, Nature Center, parks, streetscape

etc.)

• Because baseline of existing taxable value is so low tax increment

will be very high

• Roughly $50 M bondable capacity projected

Mortgage Assistance Program

Program Elements• The home being purchased must cost less than 125% of the current median home

price

• Eligible buyers must make a down payment of at least 10% on the home

• The CRA will loan the buyer the lesser of $60,000 or 25% of the total purchase price

• The loan is secured by a second mortgage, with 0% interest, and no payments until the home is sold or the purchaser loses their eligibility for the program.

• Second mortgage is repaid to the CRA when the home is sold. The CRA can then “recycle” the funds for another qualified purchaser in Eastwood Village

• If the homeowner no longer meets the eligibility criteria, the mortgage will accrue interest on the debt and/or require immediate repayment

Program Funding

• Establish CRA on the Eastwood Village property creating tax increment funding.

• Initial funding of Mortgage Assistance Program is through proceeds received by land sales,and donations by the developer and home builders.

• Start-up loan from City to CRA to be repaid as increased taxable values begin to materialize.

Mortgage Assistance Program

Benefits

• To assist in making homes more affordable for the working members

of the communities

• Reduce traffic congestion on our roads by providing new homes

within the City limits so that workers do not have to commute in to

the City

• Help employers find employees by increasing the supply of workers

living in the city limits

• Self-perpetuating; continues to benefit workforce homebuyers within

Eastwood Village, including resales after the community is sold out.

• Estimated 300 households will benefit from the MAP at Eastwood

Village.

Eligibility Requirements

• Working full time in Lee County and/or the City of Fort Myers

• Earning up to 150% of median income

• Lives in the home full time (maintain homestead exemption)

• Household net worth limitation

• Liquid assets limitation

Mortgage Assistance Program:

• 25% of the homes will be offered for sale at

workforce pricing, to be adjusted annually.

• Developer will contribute 2% of net land

sales to the MAP.

• No more than 1% of the developer

contribution may be used for administration.

• City will be notified six months in advance of

the approximate location, size, type of

homes and price to be offered.

• MAP Candidates have a 30 day exclusive

period in which to purchase.

DEAL STRUCTURE

Five Contracts and multiple amendments

Phase I Agreement

• Phase II Agreement

• Construction Management Agreement

• Mortgage Assistance Plan Agreement

• 6th Amendment to Phase II Agreement

Phase I Agreement

• Established purchase price of $43,560 per acre or appraised

value for 31.45 acres

• $600,000 of total $1.37 M would be in form of development

services to permit overall project

• Identified how city would use funds: MLK corridor study,

appraisals, title work, Clemente Park, legal fees, survey, etc

• Laid out goals for larger project in Phase II

• Establishes relationships for permitting with city and BBG as co

applicants on comp plan amendment

Phase II Agreement

• Purchase Price of $35,000 per “upland” acre acre is

established

• $100,000 deposit put in escrow with deposit pro rated over

each takedown

• Identifies limits of approximately 415 acre parcel

• Identifies what “upland lands” are and what lands BBG will and

will not be required to pay for. e.g. Edison ROW, city parks and

related water management facilities

• Establishes timing of required closings and deadline to acquire

all land

• Establishes timeframe for reappraisal of land and adjusted

price

Phase II Agreement cont.

• Provides for 50/50 shared cost of wetland mitigation up to

$4Million

• Allows BBG to develop property prior to closings but not

encumber land with financial liens

• Allows BBG to sell land to builders immediately after acquiring

from city

• Allows BBG to establish a CDD

• Creates requirement to establish MAP and BBG to provide 2%

of land sales revenue as funding for MAP

Phase II Agreement cont.

Sets forth city obligations as follows:

• Construct Fireman’s Park

• Construct Edison Avenue extension with 18 month notice

• May, but shall not be required to build Hanson extension

• Provide for water and sewer impact fee waivers

• Provide ingress and egress points

• provide BBG with signage locations on golf course property

fronting Colonial

• Obtain ERP, COE permits (with BBG managing and paying for

process)

• Pay for 50% of wetland mitigation expense

• Relocate fire training facility and city nursery within 30 months

Phase II Agreement cont.

Sets forth BBG obligations as follows:

• Obtain all permits except ERP and COE

• Develop dual water irrigation facilities (if desired)

• Provide for continued operation and expansion of city wellfield

• Provide construction management for clubhouse at no fee

• Manage hazardous waste remediation and fund up to

$400,000. Obtain estimate of total cost prior to first closing

Construction Management Agreement

Defines how BBG will assist city in design and

construction of the new clubhouse

• BBG to fund construction

• BBG to design and permit vertical and horizontal construction

elements

• BBG to act as construction manager at no fee

• BBG will be credited total of out of pocket expenses towards

future purchase of land ($2.8 M)

MAP Agreement

• Required developer to contribute 2% of net land sales revenue

to MAP

• Restricts administrative costs to 1% of revenue noted above

• Requires city to contribute to MAP fund and identifies how city

will fund MAP

• Any unused MAP funds must be used to enhance Eastwood

Village CRA area or be returned to developer

• Establishes that developer will offer 25% of all Eastwood homes

in price range at or below Lee County median home price and

establishes procedure for determining same

• Establishes process for MAP buyers to have “first choice” of

homes offered

• Establishes other MAP criteria noted in previous slides

6th Amendment

Based on downturn in economy deadlines were extended

and certain items were negotiated into the contract• First required closing extended to 2013

• Deadline for acquiring all property set for 2020

• Extended MAP creation deadline to 2009

• Transferred city’s obligation to build Fireman’s Park to BBG

• Extended City’s obligation to relocate fire training facility and

nursery to 2014

• Extended city obligation to build Edison extension

• Clarified wetland mitigation cost sharing

• Clarified acreages to be acquired by BBG

• Required builders to contribute 0.5% of net sales revenue to city

for use in offsetting environmental remediation costs

BBG investments to date

• BBG acquired 44 acres for $1,440,000,

$100,000 deposit paid for remaining land.

• BBG designed, permitted and constructed a

complete new Eastwood golf clubhouse facility

($2,8 M)

• BBG has spent $2,1 M soft costs to date

• BBG has spent over $7.2 M to date

• Worked with the city to modify contract and

draft the Mortgage Assistance Program

Summary

• Eastwood Village is designed, positioned and permitted with

public/private contractual mechanisms in place.

• Supports the City’s long term goal to revitalize Martin Luther King,

Jr. Blvd. and create a gateway into the City of Fort Myers

• Enhances the environment through the redevelopment of a brown

field site.

• New approach for a residential and commercial development

• Creates a mixed income community through an innovative

mortgage assistance program to create workforce housing.

Thank you!

Questions?

DeContact info.

Dennis L Church ASLA, AICP

Community Development Advisors LLC

(239) 410 0618

churchdennis5@gmail.com