Summary The City of Alachua is applying for a $1,498,083.00 CDBG Economic Development grant on behalf of Alachua A One, LLC, to fund community improvements to support a new 70,000-square foot Assisted Living Facility (ALF) on ten (10) acres of land located at US Highway 441 and U.S. Interstate 75 in Alachua County, Florida (site control documentation attached). The ALF will be a 120-room Assisted Living Facility offering partial service hospitality services. The service area for this business will include all of Alachua County and contiguous counties, as well as U.S. Interstate 75, Florida's major north-south corridor, allowing us the opportunity to take advantage of the tourism Florida generates. We anticipate the total cost for this part of this project to be approximately $12 million dollars.
Alachua A One, LLC, will be the owners and managers of this Assisted Living Facility and will create a minimum of forty-three (43) full time equivalent permanent new jobs within the two-year CDBG grant period. These positions will include Nurses, CNA’s, Physical and Occupational Therapists, administrator, front desk personnel, a night auditor, breakfast hostesses, maintenance and house men, and housekeepers. The forty-three (43) new job creation estimates are based on Market Analysis and Market Professional research studies of other Assisted Living Facilities of the same size. A minimum of twenty-two (22) full-time equivalent new jobs will be held by individuals from low-to-moderate income households. If more than sixty (60) new full-time positions are created, at least 51% of the total new jobs created will be a filled by members of LMI families; therefore meeting the CDBG National Objective of benefiting LMI households. All full-time jobs will be provided company sponsored health care. Alachua A One, LLC, will provide training to persons from low to moderate income households to equip them with the necessary skills needed to obtain and hold the job if necessary.
It is estimated that the facility will be open by December 2020, contingent upon grant funding and the City of Alachua's infrastructure being completed. Alachua A One, LLC, intends to begin hiring employees approximately three weeks prior to the facility opening. Alachua A One, LLC, commits to begin construction of its facility prior to, or shortly after construction of the grant funded public infrastructure begins.
The grant being requested will provide public street improvements, water lines, wastewater lines and a stormwater retention facility. The City is proposing to provide street improvements which include access to Highway 441 and NW 167th Boulevard via a round-about that is currently under construction. All CDBG funded activities will occur in public right-of-way or on publicly-owned land.
The total estimated amount of the grant request will be $1,498,083 and will include construction and administration of the grant program. The total estimated construction cost for the infrastructure is approximately $1,378,083; with the CDBG funded infrastructure construction estimated to be $380,000 for the street improvements, $185,000 for the sewer line, $97,835 for water lines, and $715,248 for stormwater facilities.
In addition to construction costs, $120,000 in CDBG funds are being budgeted for administration of the program. In addition to CDBG funding, Alachua A One, LLC will be contributing approximately $10.7 million for land, site development, building construction, and other development costs. Total project costs from all sources including CDBG and Alachua A One, LLC are $12,242,133.00.
Without the provision of this infrastructure, Alachua A One, LLC will be unable to develop the site for use as a Hampton Inn and will be unable to create the jobs proposed for the project.
The City anticipates starting construction on the proposed infrastructure within the next 10 months contingent upon the design schedule and anticipates completion of the infrastructure within one year. All activities will occur within the incorporated area of the City of Alachua. No activities will occur within a flood-prone area.
This project will provide increased infrastructure facilities to an undeveloped area including expanded sewer and water service, additional commercial development is expected. Additionally, given the improved employment opportunities afforded by the ALF development, it is anticipated that additional economic development will be generated at local commercial establishments. Local government revenues and the local tax base will be improved by the additional commerce and accompanying taxes.
The cost per job to be created or retained by the Participating Parties as a direct result of the CDBG assisted activities will be less than $35,000 per job in CDBG funds. | | |