A development group is seeking up to $10.6 million in incentives to incorporate affordable and workforce housing into its proposed 25-story mixed-use project ‘Fern & Gardenia‘ designed by Miami-based Arquitectonica in downtown West Palm Beach. The city’s Community Redevelopment Agency (CRA) Board will review the term sheet for tax increment financing (TIF) from WPB Fern Holdings LLC today. WPB Fern Holdings LLC is a partnership between Miami-based 13th Floor Investments, West Palm Beach-based Wexford Real Estate Investors, and New York-based L&L Holdings.
According to the South Florida Business Journal, the proposed development will occupy an entire block spanning 2.64 acres at 401 South Dixie Highway and 418 and 464 Fern Street. The project is set to feature 340 apartments and 19,474 square feet of commercial space, with a commitment to preserving a historic building dating back to 1925. The development aims to balance modern residential and commercial needs while honoring the city’s architectural heritage.
Fern & Gardenia. Credit: Arquitectonica.
The developers have utilized the transfer of development rights (TDRs) to increase the project’s size, which, according to city regulations, 20% of the additional residential units obtained through TDRs must be designated as affordable or workforce housing. In this case, the project would include 22 units reserved for individuals making 60% or 100% of the area median income. In exchange for maintaining these 22 units as income-restricted for 40 years, the developers request a TIF deal from the CRA. If approved, the CRA would forgo 45% of its property taxes from the project for 20 years, with the maximum value of the incentive totaling $10.6 million.
The median household income in Palm Beach County currently stands at $90,300. The proposed project would offer six apartments for individuals earning 60% of the area median income, five for those earning 80%, and 11 for those earning 100% of the area median income. Despite these efforts to provide affordable and workforce housing, the majority of the apartments in this development will still be market-rate.
Fern & Gardenia. Credit: Arquitectonica.
The developers, who assembled the property for $26.1 million in 2021, first filed plans for the project in 2022. As the project progresses, the developers’ request for incentives highlights the financial complexities often involved in including affordable housing in large-scale developments.
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Hi, I would love to live there. I have a section 8 voucher. It will be me only. Single lady almost 60 years old.
How can I apply?
Please reply with more information about this beautiful project.
Thank you
To be eligible for “workforce housing,” you need to make six figures. Go look in Riviera Beach.
It’s outrageous to ask to for $10 million tax breaks. You’re a profit-making developer.
Build it yourself or don’t. It’s your choice.
I’m sure they would, but without the affordable housing set asides.
Tax breaks are a joke when they are using services and water. They bought in now they should pay or they should not have overpaid for the land.
Boom today. Bust tomorrow.
Not a good deal at all, but WPB never says no to a developer. Money talks.