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, a 99-year ground lease for workforce and affordable housing on County-owned land. The Phase 2 Lease is with Residences at Wagner Creek, LLC, an affiliate of RUDG, LLC. 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 is replaced with a capitalized lease payment estimated at approximately $41,331,973. Construction completion is accelerated to December 2029. A provision contemplates 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. The Phase 2 Lease requires a minimum of 50 percent of residential units 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 Housing Committee forwarded the item to the BCC with a favorable recommendation on July 14, 2026. The item was adopted on July 21, 2026. No public comment or stakeholder sentiment is stated in the document.