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|February 11, 2021 City Council Regular Meeting|
29. Approval to Award the Sale of Surplus Property Located at 1700 Drayton Street (PIN 20053 38013), 104 E. 34th Street (PIN 20053 38007), and 1705 Abercorn Street (PIN 20053 38003) to Pinyan/Procida Development Group (Event No. 7984)
City-owned properties 1700 Drayton Street (PIN 20053 38013), 104 E 34th Street (PIN 20053 38007) and 1705 Abercorn Street (PIN 20053 38003), located in the Thomas Square neighborhood, were declared surplus and available for sale during the regularly-scheduled City Council meeting on May 14, 2020. These properties formerly housed the Code Compliance Department and its parking lot until the building suffered major fire damage, was subsequently declared a total loss and demolished. The combined properties encompass 0.78 acres or +/- 33,976 square feet.
A request for proposals (RFP) was issued soliciting proposals for development of affordable rental housing. This event was marketed publicly by both staff and Collier’s International, the City’s annual contract Real Estate broker. Three qualified proposals were received and evaluated by a three-person interdisciplinary committee of City staff.
The highest scoring response was from the Pinyan/Procida Development Group, a joint venture of Pinyan Company and Procida Development Group. Their proposal includes 40 residential units, +/- 700 SF of commercial retail space, and 42 parking spaces. The residential unit mix would consist of 25 one-bedrooms, 13 two-bedrooms, and 2 three-bedrooms developed on all three parcels of land. The proposed number and affordability of the apartment units exceeds the target established in the City's RFP.
Pinyan/Procida plans to seek Low-Income Housing Tax Credits (LIHTC) from the Georgia Department of Community Affairs, and will petition the Metropolitan Planning Commission for a building footprint variance. There is no guarantee the project will receive the required credits and zoning variance to make this project feasible.
The Buyer's proposed purchase price of the three properties is $750,000. The Buyer anticipates investing $13,885,777 into the development, including land acquisition. If approved by Council, the Buyer will be provided 60 days due diligence, and then a 120-day entitlement period to seek the zoning variance. Buyer may terminate and receive a refund of the deposit during this period of time. However, if Buyer progresses past the due diligence and entitlement period, the deposit becomes non-refundable and Buyer must close on the sale before December 31, 2021. To ensure development of the site with an affordable rental housing project, the City will place a deed restriction on the property limiting development to the proposed use and will include a reversion instrument that survives closing in the event Buyer fails to complete plans and commence construction within two years.
Request approval to award this sale to Pinyan/Procida subject to conditions noted, and authorization for City Manager to execute deeds and any associated closing documents.
David Keating, Senior Director of Real Estate Services.
Revenue of $750,000 to the General Fund
Exhibit 1: Map - 1700 Drayton Street.pdf
Exhibit 2: Bid - 1700 Drayton Street.pdf
Exhibit 3: Evaluation - 1700 Drayton Street.pdf