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 a workforce and affordable housing development on County-owned land. The Phase 2 Lease is with Residences at Wagner Creek, LLC for a 99-year term. 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 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 of $135,000 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 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 spaces (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 of existing improvements due at financial close (estimated $4,133,197) and the balance due after 33 years (estimated $37,198,776 plus interest). The project is located at 1500 NW 12th Avenue, Miami, Florida, on a portion of Folio Nos. 01-3135-045-0010 and 01-3135-045-0020. The property 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. The developer is RUDG, LLC, and the tenant is Residences at Wagner Creek, LLC. The file number is 261263. The document does not state any public comment or stakeholder sentiment.