For the last 5 years, since the purchase of the Golden Gate Golf Course property, we have monitored the development projects and periodically reported on the various project changes proposed for the site. One of the projects, which includes the phased development of essential services housing (Phase I) and senior/veterans housing (Phase II), was discussed in the recent meeting of the Board of County Commissioners on March 26, 2024.
At that meeting, the Board approved the following documents related to the development of housing at the former Golden Gate Golf Course:
- Second Amendment to Developer Agreement with Rural Neighborhoods, Inc.
- Termination of Collier County Standard Form Long-Term Ground Lease.
- Collier County Standard Form Long-Term Ground Lease (Phase I – Essential Services Housing), HUD Lease Addendum and Phase 1 Easement.
- Collier County Standard Form Long-Term Ground Lease (Phase 2-Senior Housing) and Phase II Easement.
- Land Use Restriction Agreements for each phase as required by grant funding sources, once developed and approved for legality. (It appears this was approved without a document developed nor approved by legal)
- Three Party Income Sharing Agreement for Phase I Renaissance Hall at Old Course. The parties to the agreement are Renaissance Hall at Old Course, the Community Foundation, and Collier County.
The approval of a second amendment to the developer agreement, contained a third extension to May 30, 2024 for Rural Neighborhoods, Inc. to secure project funding commitments.
To provide a brief overview of the project, the Board first approved the Housing and Land Developer Agreement with Rural Neighborhoods Inc. (RNI) in November 2020 and approved comprehensive funding allocations to support the project in October 2023. The county’s funding commitment currently estimated at almost $25M is detailed below:
The Developer Agreement proposed by Rural Neighborhoods Inc. allows the housing to be developed in the following phases:
- Phase 1 (19.62 Acres): Renaissance Hall at Old Course – provides essential services personnel housing. The table below shows how the proposed units have changed since the initial response to the Invitation to Negotiate (ITN). The largest change is in units from the 60%-80% Area Median Income (AMI) shifting to the 120% AMI category.
- Phase 2 (2.16 Acres): Senior Housing
The Phase II portion of the project is focused on lower income (30%-60% AMI) Senior/Veterans housing.
Funding Extension
The phased development may necessitate the involvement of different lenders for each phase. RNI has indicated pending financial commitments for Phase 1 under the US HUD Community Project Grant ($2,000,000), FL SHIP ($1,500,000), the Collier Community Foundation and Moorings Park Foundation ($10,000,000) and $18,430,167 from Collier County including impact fee waivers and land. Additionally, Colliers International has issued a Notice of Intent to loan up to $10,300,000 to the project. Funding from the State Local Fiscal Recover Funds and the US HUD first mortgage loan guarantee are still pending. The County may terminate the lease if Rural Neighborhoods, Inc. cannot secure a financial commitment for Phase I by the May 30, 2024 deadline.
The 99-year term ground lease with Rural Neighborhoods involves 21.78 acres of the former Golden Gate Golf Course with an approved annual rent of $10. As provided in the Developer Agreement, funding for acquiring the land and/or debt service is planned to come from the Infrastructure Sales Surtax Fund.
Income Sharing Agreement
The income-sharing agreement among Rural Neighborhoods Inc., the Community Foundation, and the Board for Phase 1 was approved. The partnership-shared income distribution occurs after operating expenses, superior and subordinate debt services, lease up fee, voluntary and operating loan debt service, management fees, subordinate, voluntary and mandatory debt, operating loans, asset management fees, deferred management fees, deferred developer fees, and funding for a special operating and replacement reserve. The Income Sharing Agreement allocates potential profits as follows: 50% (estimated @ $110.8M) to Renaissance Hall at Old Course, LLC, 25% (estimated @ $55M) to the Collier Community Foundation, Inc., and 25% (estimated @ $55M) to Collier County, all by the 40th year. Excess profits for years 41-50 are projected at over $147M and distribution is unclear.
Pursuant to the terms of the Agreement, the parties agree to utilize the distributed shared income as follows:
- Developer and Project Owner Donor Directed Fund: The Project Owner agrees to place one-half of its share of Shared Income into a donor-directed fund established with the Community Foundation to be used by the Developer and Project Owner (RNI) or their affiliates towards any and all costs associated with the acquisition, preservation, development, maintenance, and management of affordable or workforce housing located in Collier County, Florida that is planned, under development or owned in whole or in part by Developer or its related entities.
- Foundation Fund: The Collier County Community Foundation shall establish a fund from its share of Shared Income to be used towards any and all costs associated with the advocacy, analysis, acquisition, preservation, development, maintenance, and management of affordable or workforce housing located in Collier County, FL in accordance with guidelines established by representatives of the Collier Community Foundation, Moorings Park Foundation, and Richard M. Schulze Family Foundation.
- County: The County shall use its share of Shared Income for any and all costs, including, but not limited to, costs associated with the acquisition, development, preservation, maintenance, and management of affordable or workforce or essential service provider housing located in Collier County, Florida.
Distributions of shared income, if any, to the Foundation and the County, will commence following project completion, as defined by receipt of final certificate of occupancy on the project, and shall continue for 40 years, beginning upon completion of construction of the project. The project pro forma provided by the Developer on January 25, 2024, indicates that the first projected partner distribution under the terms of the Agreement is expected to occur in 2032. Phase 2 Income Sharing may be different and will be negotiated at a future date.
Both the second amendment and the income-sharing agreement and other items enumerated in the agenda regarding the Golden Gate Golf Course Project have been approved by the Board of County Commissioners.
Unresolved concerns include:
- $26.2M outstanding debt on the golf course acquisition
- Undefined schedule or contract for Phase II
- Uncommitted construction start or finish dates
- No requirements by the partners to build any specific style or number of affordable housing units with their residual profits
- Contracts between RNI and entities other than the County have not been made available, even though requested
- Rents appear to be close to market rates (see chart below)
We will continue to monitor this project as it develops.