Beneficial Communities Partners emerged victorious from the Daytona Beach commission meeting Oct. 2 in getting support for federal tax credits of $15.2 million dollars.
Managing Partner Ken Bowron made a presentation to commissioners, who chose his company over American Residential Communities, who were hoping for the same support to create senior housing with their Madison Cove project. Mayor Derrick Henry broke the tie in a close 4-3 vote.
The proposed $18 million Midtown Manor Apartments are at the site of the failed MLK Lofts project at 223 S. Dr. Martin Luther King Blvd. with a mix of one, two and three-bedroom units as well as on-site management and an extensive amenities package. The site is about two acres.
The proposed Madison Cove would have been at the southwest corner of Beach Street and Madison Avenue. The proposal was to create a seven-story, 80-unit high rise for seniors over age 55. Rent would have been about $411- $758 monthly, including units for persons with special needs.
After the meeting Mr. Bowron said, “We don’t have an exact rendering of the building yet, but we do have a similar four story development in Zephyrhills. We plan on submitting the development for financing into Florida Housing Finance Corp. Nov. 5. Awards we’ll be announced in March 2020.
“It was a long meeting but we feel good. We were up against another viable and great project and good developer,” Mr. Bowron said. “Both projects are needed. I was just glad the commission voted for our project. I think the midtown area is in definite need of redevelopment and hopefully this could be a catalyst for more private development in that area.”
Midtown Manor is slated to be a four-story, 82-unit workforce housing building with an estimated monthly rent between $349 and $795. All units will be rented to families making no more than 60% of the area median income. Obtaining the federal tax credits is critical to being able to complete the project.
For the creation of affordable housing. the Florida Housing Finance Corp. annually allows private developers to propose projects to a jurisdiction and, if selected by the FHFC, receive Low Income Housing Tax Credits to support a project. The developer receives the tax credits over a 10-year period.
Both developers requested that support in the form of a loan commitment from the city to include in their application materials to the FHFC. Beneficial Communities Partners requested the city commit to a loan of $425,625 and American Residential Communities requested a loan of $560,250 for Madison Cove. The city is not obligated to provide the requested support to either of the projects, however, FHFC will give a project that has local financial support a higher score than a project lacking such support.
Besides Mayor Henry, commissioners who voted to support Beneficial Communities Partners were Paula Reed, Aaron Delgado and Dannette Henry.
Commissioner Reed gave an impassioned speech prior to the vote stating, “Today is a critical day for the residents of midtown. Today we have an opportunity to bring forth a project that will bring affordable housing to the core of this city area. Today we can awaken a sleeping giant that is called midtown, by providing hope to this community that is long overdue. A community that can benefit greatly from this initiative that is being presented to us tonight.”
In other business, commissioners adopted an ad valorem property tax millage rate of 5.8587 ($5.8587 per $1,000 of assessed value). This is a 3% increase from the rolled back rate of 5.6880.
The budget also was adopted for the fiscal year Oct. 1 to Sept. 30 with estimated revenue sources of $262,152,050, and setting operating expenditures, capital expenditures and transfers of $262,152,050.