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 (File Number 261263) on July 21, 2026, 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 properties bearing 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 estimated cumulative rental revenue over the term is $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. The Phase 2 Lease includes material changes: refurbishing existing Jackson Medical Towers structures into a 358-unit residential building with approximately 676 parking spaces instead of demolishing and constructing a new residential tower with 361 rental units; modifying the residential unit income mix so a minimum of 20 percent are workforce housing units and a maximum of 30 percent are unrestricted, instead of a minimum of 30 percent workforce and a maximum of 20 percent unrestricted; eliminating the planned 128-unit hotel tower; eliminating the $135,000 initial rent payment and replacing it with a capitalized lease payment; accelerating construction completion from February 2032 to December 2029; adding a provision for a sublease for a vocational high school focused on health sciences; and adding a provision 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 for employee parking. The Phase 2 Lease still requires a minimum of 50 percent of residential units be maintained as affordable housing units. The capitalized lease payment entails a lump sum payment of ten percent of the fair market value of existing improvements, due on financial close (estimated to be $4,133,197), and the balance due subject to a promissory note, to be paid after 33 years (estimated to be $37,198,776, plus interest). The subject property is located in County Commission District 3. The resolution authorizes the Public Health Trust to execute the Phase 2 Lease and administer its terms, and authorizes the County Mayor or designee to take certain actions. The resolution directs the County Mayor or designee to provide the Property Appraiser's Office with a copy of the executed Phase 2 Lease within 30 days of its execution. The resolution was introduced on July 7, 2026, and adopted on July 21, 2026. The Housing Committee forwarded it to the BCC with a favorable recommendation on July 14, 2026. The Prime Sponsor is Keon Hardemon. The document does not state any public comment or stakeholder sentiment.