Oaks at Moore’s Creek Project Update and Discussion on Next Steps along with consideration of second Subordination and Standstill Agreement

The FPRA received a request for approval of a Subordination and Standstill Agreement with Florida Housing Finance Corporation (FHFC) and OMCII, LLC. The agreement was reviewed and revised by the City Attorney, who notes that this version is significantly different and has a broader impact on the FPRA compared to the one previously approved, as detailed below:

1. The executed Development Agreement requires the FPRA to subordinate its Right of Reverter to any “construction mortgage financing”. This loan is not construction mortgage financing. This loan is for pre-construction services the developer needs money to complete. Therefore, it does not fall within what is required of the City to subordinate the Right of Reverter to under Paragraph 7.14 of the Development Agreement.

2. The previous Subordination and Standstill Agreement was written so that the subordination occurs parcel by parcel, only upon construction mortgage financing being obtained for that individual parcel. The way this Subordination and Standstill Agreement is written is that it would affect the entire property from the beginning. This will severely limit the FPRA’s ability to obtain the property back if there is a default on the loan and/or the Development Agreement. If the developer defaults on the mortgage, the mortgaging company will be able to foreclose on the entire property.

Staff will proceed as directed by the FPRA Board.

Staff will proceed as directed by FPRA Board.

Miriam Garcia, Redevelopment Specialist
Shyanne Harnage, Community and Economic Development Manager
Sara Hedges, City Attorney

Miriam Garcia, Redevelopment Specialist
Shyanne Harnage, Community and Economic Development Manager
Sara Hedges, City Attorney