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, a 99-year ground lease for workforce and affordable housing on County-owned land. The Phase 2 Lease is with Residences at Wagner Creek, LLC, an affiliate of RUDG, LLC. The project involves refurbishing existing Jackson Medical Towers structures into a 358-unit residential building with approximately 676 parking spaces, instead of demolishing and building new. The residential unit income mix changes to a minimum of 20 percent workforce housing and a maximum of 30 percent unrestricted. The planned 128-unit hotel tower is eliminated. The initial rent payment is replaced with a capitalized lease payment estimated at approximately $41,331,973. Construction completion is accelerated from February 2032 to December 2029. A provision is added for a possible sublease for a vocational high school focused on health sciences. The Public Health Trust gets an annual option to lease back a minimum of 20 percent of parking capacity (estimated 135 spaces) at discounted rates. A minimum of 50 percent of residential units must be maintained as affordable housing. Estimated cumulative rental revenue over the term is $534,923,191. The capitalized lease payment entails a lump sum of ten percent of fair market value due at financial close (estimated $4,133,197) and the balance due after 33 years (estimated $37,198,776 plus interest). The project is in County Commission District 3. The resolution was adopted on July 21, 2026. The Housing Committee forwarded it with a favorable recommendation on July 14, 2026. No public comment sentiment is stated in the document.