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After a month of rancor, Lakeland commissioners unanimously approved three deals Monday, allowing longtime tenants to buy the Mass Market-area buildings they occupy.
Commissioner Stephanie Madden called the outcome “a Christmas miracle.”
The breakthrough came when Market Lofts Apartments, DOU Bakehouse and Haus 820 presented written proposals, identifying their preferred outcome among options detailed by city staff.
The final terms included smaller credits than those first proposed on Nov. 14, but they still recognized rent paid, risks taken and money invested in the once-blighted area.
Madden reiterated that the businesses are taking out million-dollar loans, despite the credits. “They’re still getting a million more dollars to invest in this area, and it’s still a risk for them to do that,” she said.
McLeod pointed out that the three sales will yield nearly $3 million — $2,998,911 — that the CRA can use for other redevelopment projects.
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Brian Rewis, director of Community and Economic Development, stressed that the sums will be credits toward payment — not price reductions — so the recorded sale prices for each property will be the appraised value.
That means the businesses will pay taxes based on the full value, and nearby properties will benefit from comparable sales or “comps” that recognize improvements made over the past decade.
All three contracts will include a 10-year “right of first refusal” clause that allows the city to buy the property back at market value if it’s later put up for sale.
Market Lofts Apartments (Neighbors of Lakeland LLC)
Brian Seeley, operator of the Market Lofts Apartments, asked to go first because his purchase didn’t involve off-site parking, making it the simplest of the three.
He also didn’t have past capital investments in the 12-unit complex at 310 Plum St., although he plans to spend about $300,000 to create four more efficiency apartments.
Seeley proposed a flat 20% redevelopment incentive, recognizing his past rent, long track record of serving the community and commitment to improve the apartments and keep them affordable.
Commissioners briefly discussed adding requirements to ensure the new apartments get built, but ultimately decided to keep the agreement simple.
“If we’re selling the properties and moving out of it from a CRA-ownership standpoint, then let’s move out of it,” Commissioner Chad McLeod said.
The commissioners voted 6-0 to approve the deal, which will bring $1,056,000 cash to the CRA. Mayor-elect Sara Roberts McCarley was absent.
DOU Bakehouse
Diana Cortes and David Hernandez, managing partners of DOU Bakehouse, won the commissioners’ support by presenting a commercial contractor’s estimate of the actual cost to bring the hurricane-damaged property at 830 N. Massachusetts Ave. up to code for food production.
Commissioners debated whether to sell an adjacent lot that the business uses for parking. But leaving it out would have significantly lowered the property’s value and limited future growth, so they agreed to include it.
“This is not giving money away,” Madden said. “They have taken old properties that were left neglected in a blighted area … and they got in there, and they put their own blood, sweat and tears and their own creativity and they cleaned it up.”
The commissioners voted 6-0 to approve credits for past rent, past capital investment and essential repairs, resulting in $844,187 cash to the CRA.
Haus 820
Laura Shannon, owner of Haus Management, convinced the Commission to support her bid by showing what it would cost to restore the hurricane-damaged portion of 820 N. Massachusetts Ave. to a “white box.”
Commissioners Mike Musick,Guy LaLonde Jr., Bill Read and Chad McLeod had been uncomfortable with funding “future capital improvements.” But all agreed that a landlord has a responsibility to fix storm damage.
The commissioners voted 6-0 to give Haus 820 credit for past rent, past capital investment and essential repairs. That will result in $1,098,724 cash to the CRA.
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Thanks for the informative article on these three important properties in Lakeland Cindy. I have just one more question, what’s a ‘white box’?
Hi, Andy. Thanks for being such a loyal reader. A “white box” is basically a no-frills empty space with white walls and all of the basic up-to-code electric and plumbing, but nothing extra.
Did Haus 820 offer any plans on what they intend to do with the building? It has been empty for some time now.