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 at 1500 NW 12th Avenue, Miami, Florida, on a portion of Folio Nos. 01-3135-045-0010 and 01-3135-045-0020. The Phase 2 Lease is with Residences at Wagner Creek, LLC, an entity affiliated with RUDG, LLC. The project involves refurbishing existing Jackson Medical Towers structures into a 358-unit residential building with approximately 676 parking spaces, instead of demolition and new construction. The residential unit income mix is modified so a minimum of 20 percent are workforce housing units and a maximum of 30 percent are 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 to December 2029. A provision is added for a sublease for a vocational high school focused on health sciences. A provision gives the Public Health Trust an annual option to lease back a minimum of 20 percent of parking spaces (estimated 135 spaces) at discounted rates. The total cumulative estimated rental revenue to the Public Health Trust is $534,923,191 over the term. The capitalized lease payment entails a lump sum of ten percent of fair market value of existing improvements due at financial close (estimated $4,133,197) and the balance due after 33 years (estimated $37,198,776 plus interest), subordinate to a senior lender note. The Phase 2 Lease requires a minimum of 50 percent of residential units be maintained as affordable housing units. The resolution was adopted on July 21, 2026. The Housing Committee forwarded it with a favorable recommendation on July 14, 2026. The property is in County Commission District 3.