GROUND LEASE AGREEMENT FOR COUNTY-OWNED LAND LOCATED ON PHT

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

Resolution 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 workforce and affordable housing on County-owned land located on a portion of Folio Nos. 01-3135-045-0010 and 01-3135-045-0020. The Phase 2 Lease involves refurbishing existing Jackson Medical Towers structures into a 358-unit residential building with approximately 676 parking spaces, instead of demolishing and constructing a new tower with 361 rental units. The residential unit income mix changes to a minimum of 20 percent workforce housing and a maximum of 30 percent unrestricted, instead of a minimum of 30 percent workforce and a maximum of 20 percent unrestricted. The planned 128-unit hotel tower is eliminated. The initial rent payment of $135,000.00 is replaced with a capitalized lease payment estimated at approximately $41,331,973.00. Construction completion is accelerated 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 for the Public Health Trust to lease back a minimum of 20 percent of parking spaces (estimated 135 spaces) at discounted rates. The Phase 2 Lease requires a minimum of 50 percent of residential units be maintained as affordable housing. The capitalized lease payment entails a lump sum of ten percent of fair market value due at financial close (estimated $4,133,197.00) and the balance due after 33 years (estimated $37,198,776.00 plus interest). Total cumulative estimated rental revenue is $534,923,191.00. The resolution was adopted on 7/21/2026. The applicant is RUDG, LLC, and the tenant is Residences at Wagner Creek, LLC. The case file number is 261263. The document does not state any public comment or stakeholder sentiment.