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, a 99-year ground lease for workforce and affordable housing on County-owned land at 1500 NW 12th Avenue, Miami, Florida, on a portion of Folio Nos. 01-3135-045-0010 and 01-3135-045-0020. The Phase 2 Lease is with Residences at Wagner Creek, LLC, an affiliate of RUDG, LLC. The project involves refurbishing the existing Jackson Medical Towers structures into a 358-unit residential building with approximately 676 parking spaces, instead of demolishing and constructing a new tower. The residential unit income mix changes to a minimum of 20 percent workforce housing and a maximum of 30 percent unrestricted, from a minimum of 30 percent workforce and a maximum of 20 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. The construction schedule is accelerated from February 2032 to December 2029. The lease adds a provision for a vocational high school sublease and a provision for the Public Health Trust to lease back a minimum of 20 percent of parking spaces (estimated 135 spaces) at discounted rates. The total 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 due at financial close (estimated $4,133,197) and the balance due after 33 years (estimated $37,198,776 plus interest). The project is in County Commission District 3. The resolution was adopted on July 21, 2026, after being forwarded with a favorable recommendation from the Housing Committee on July 14, 2026. The document does not state any public comment or stakeholder sentiment.