CRA board approves developers agreement for 81-unit downtown apartment project

The Winter Haven Community Redevelopment Agency (CRA) board on March 10 approved a developers agreement with The Karl Winter Haven LLC to support an 81-unit apartment project in downtown Winter Haven.

Eric Labbe, staff member, told the board the project — referred to as The Karl — is a proposed eight-story, 81-unit “flat iron” apartment building to be sited on the grassed parcel in front of the former BB&T building downtown. “This is a developer's agreement for the Karl, which is a proposed 81 unit apartment complex,” Labbe said during the presentation. He said amenities will include a clubhouse, pool, patios, courtyard, fitness center, elevators and a business center and that the applicant provided renderings and a site plan.

The agreement includes a tax-increment financing (TIF) rebate on ad valorem revenue generated by the project. Labbe described the rebate schedule as providing 90% of the project-generated TIF for the first 10 years, with a reduced rebate in later years as presented to the board. He also said the applicant requested reimbursement of projected water and wastewater connection fees payable to the developer over four years (one-fourth per year). “The TIF rebate is paid annually from the tax increment generated from the project for a defined period of time,” Labbe said.

Labbe presented the project's financing and fiscal projections, reporting a total project cost of $26,740,000 financed approximately 65% by construction loans and 35% by private equity. He told the board staff projects the city would receive about $571,000 in ad valorem revenue over the first 20 years if the project is built and that TIF rebates to the developer over that period would total roughly the amount shown in the staff presentation. Labbe said the advisory committee heard the proposal on Feb. 3 and “unanimously recommended approval of the developers agreement.”

Board members asked whether parking would be on-site (Labbe: yes) and whether the development would include workforce housing (Labbe: it is market-rate apartments). Board members also discussed public parking on the lot south of the proposed building; Labbe said that lot is private but is currently made available to the public and “to my knowledge, that would still be available.”

After a motion and no public comment, the board voted in favor. Chairman Yates called for those in favor to say “aye,” and the motion carried.

The board approved the developers agreement and directed staff to proceed under the terms presented. The applicant was in the audience and available for questions, Labbe said.

Details presented in the board packet and staff presentation — including the exact TIF step-down percentages beyond year 10 and unit-size ranges — contained wording that was unclear on the audio record; the board vote approved the agreement as presented by staff.