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, for a term of 99 years, for the provision of workforce and affordable housing on County-owned land located on a portion of properties currently bearing Folio Nos. 01-3135-045-0010 and 01-3135-045-0020, with a total cumulative estimated amount of rental revenue to the Public Health Trust of $534,923,191.00 over the term. The Phase 2 Lease is with Residences at Wagner Creek, LLC, an entity affiliated with RUDG, LLC. The project involves refurbishing the 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 the residential units are maintained as 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. The planned 128-unit hotel tower is eliminated. The $135,000.00 initial rent payment is replaced with a capitalized lease payment estimated to be approximately $41,331,973.00. The construction schedule for completion of the second phase is accelerated from February 2032 to December 2029. A provision is added contemplating that the Tenant enter a sublease for the establishment of a vocational high school focused on health sciences on the leased premises. A provision is added giving the Public Health Trust an annual option to lease back a minimum of 20 percent of the parking space capacity (estimated to be 135 parking spaces) at discounted rates for employee parking. The Phase 2 Lease still requires that a minimum of 50 percent of the residential units delivered be maintained by Tenant as affordable housing units. The capitalized lease payment entails a lump sum payment by Tenant of ten percent of the fair market value of the existing improvements on the Phase 2 Lease premises, due on financial close (estimated to be $4,133,197.00), and the balance due subject to the terms of a promissory note, to be paid after 33 years (estimated to be $37,198,776.00, plus interest). The subject property is located in County Commission District 3. The Board authorized the Public Health Trust to execute the bifurcated Phase 2 Lease agreement and to act on behalf of the County as its agent in the performance of the County's obligations and exercise of the County's rights under the Phase 2 Lease. The Board authorized the County Mayor or County Mayor's designee to exercise any rights and perform any obligations delegated in the Phase 2 Lease, including approving and executing documents or agreements between RUDG, LLC and the Miami-Dade Department of Housing and Community Development or the Miami-Dade Department of Transportation and Public Works. The Board directed the County Mayor or County Mayor's designee to provide the Property Appraiser's Office with a copy of the executed Phase 2 Lease within 30 days of its execution.