GROUND LEASE AGREEMENT FOR COUNTY-OWNED LAND LOCATED ON PHT

Board of County Commissioners · 2026-07-21 · resolution

The Board of County Commissioners adopted Resolution R-688-26, approving the bifurcation of the Jackson Medical Towers Redevelopment Lease Agreement with RUDG, LLC for the second phase of development, for a term of 99 years, for the provision of workforce and affordable housing on County-owned land located on a portion of properties currently bearing Folio Nos. 01-3135-045-0010 and 01-3135-045-0020. The estimated cumulative rental revenue to the Public Health Trust over the term is $534,923,191.00. The Phase 2 Lease includes a capitalized lease payment estimated to be approximately $41,331,973.00. The developer is RUDG, LLC, and the tenant is Residences at Wagner Creek, LLC. The project involves refurbishing the existing Jackson Medical Towers structures and converting them to a 358-unit residential building with approximately 676 parking spaces, instead of demolishing and constructing a new residential tower with 361 rental units. The residential unit income mix is modified so that a minimum of 20 percent of units are workforce housing and a maximum of 30 percent are unrestricted. The planned 128-unit hotel tower is eliminated. The construction schedule is accelerated for completion of the second phase from February 2032 to December 2029. A provision is added for a sublease for a vocational high school focused on health sciences. A provision is added giving the Public Health Trust an annual option to lease back a minimum of 20 percent of the parking space capacity (estimated to be 135 parking spaces) at discounted rates for employee parking. The Phase 2 Lease still requires that a minimum of 50 percent of the residential units delivered be maintained by Tenant as affordable housing units. The capitalized lease payment entails a lump sum payment by Tenant of ten percent of the fair market value of the existing improvements on the Phase 2 Lease premises, due on financial close (estimated to be $4,133,197.00), and the balance due subject to the terms of a promissory note, to be paid after 33 years (estimated to be $37,198,776.00, plus interest). The subject property is located in County Commission District 3. The resolution was adopted on July 21, 2026. The Housing Committee forwarded it to the BCC with a favorable recommendation on July 14, 2026.