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 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 at approximately $41,331,973. The Phase 2 Lease is with Residences at Wagner Creek, LLC, an entity affiliated with RUDG, 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 a minimum of 20 percent of units are workforce housing and a maximum of 30 percent are unrestricted. A planned 128-unit hotel tower is eliminated. The construction schedule is accelerated for completion of the second phase 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 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 Phase 2 Lease still requires a minimum of 50 percent of residential units be maintained as affordable housing units. The subject property is located in County Commission District 3. The resolution was adopted by the Board of County Commissioners on 7/21/2026. The Housing Committee forwarded it to the BCC with a favorable recommendation on 7/14/2026. The resolution was introduced on 7/7/2026. The file number is 261263, reference R-688-26. The sponsor is Keon Hardemon. The developer is RUDG, LLC. The tenant is Residences at Wagner Creek, LLC. The property is located on the Jackson Memorial Medical Center campus at 1500 NW 12th Avenue, Miami, Florida, on a portion of properties bearing Folio Nos. 01-3135-045-0010 and 01-3135-045-0020. The Master Lease was for the redevelopment of 3.3 acres of County-owned property. The Master Lease contemplated demolition of existing improvements, construction of 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 Phase 1 Lease, executed on March 28, 2025, is for the first planned mixed-income residential tower, to consist of 460 residential rental units, parking spaces, and retail space, expected to be completed in July 2029. The document does not state any public comment or stakeholder sentiment. The business opportunity is the Phase 2 Lease for the refurbishment and conversion of the Jackson Medical Towers into a 358-unit residential building with approximately 676 parking spaces, including workforce and affordable housing, with construction completion accelerated to December 2029. The document does not state a street address for the Phase 2 Lease premises beyond the campus location. The document does not state a parcel or folio for the Phase 2 Lease premises beyond the folio numbers listed. The document does not state a zoning change. The document does not state a decision other than adopted. The document does not state key dates other than those listed. The document does not state a business opportunity beyond the project description. The document does not state a grounding note.