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 provision of a workforce and affordable housing development on County-owned land located on a portion of Folio Nos. 01-3135-045-0010 and 01-3135-045-0020, with estimated cumulative rental revenue over the term of $534,923,191 to the Public Health Trust of Miami-Dade County, inclusive of a capitalized lease payment estimated to be approximately $41,331,973, and authorizing the Public Health Trust to execute same. The Phase 2 Lease is for a term of 99 years with Residences at Wagner Creek, LLC. The project involves refurbishing 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, 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. The construction schedule 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 giving the Public Health Trust an annual option to lease back a minimum of 20 percent of parking space capacity (estimated to be 135 parking spaces) at discounted rates. The Phase 2 Lease still requires a minimum of 50 percent of residential units be maintained as affordable housing. The capitalized lease payment entails a lump sum payment of ten percent of the fair market value of existing improvements due at financial close (estimated to be $4,133,197.00), and the balance due after 33 years (estimated to be $37,198,776.00, plus interest). The project is located on the Jackson Memorial Medical Center campus, at 1500 NW 12th Avenue, Miami, Florida. The original Master Lease was for 3.3 acres and contemplated two new residential towers with approximately 808 multi-family units, parking, a hotel tower, amenities, and improvements to the adjacent UHealth/Jackson Metrorail Station. The overall project is now constructed across two phases rather than four. The resolution was adopted on 7/21/2026. The file number is 261263, reference R-688-26. The sponsor is Keon Hardemon. The developer is RUDG, LLC, and the tenant is Residences at Wagner Creek, LLC. The subject property is in County Commission District 3. The document does not state any public comment or stakeholder sentiment.