The Commercial Real Estate Alpha Site

Commissioners funded four multifamily projects using disaster recovery dollars and directed staff to seek more information on whether the remaining $3.1 million could help advance a 158-unit plan tied to Sarasota’s U.S. Recycling site.

By Kim Doleatto via SRQ Magazine

Sarasota County commissioners unanimously voted yesterday to allocate $26.9 million in federal disaster recovery money to four multifamily affordable housing projects, approving up to a $30 million program cap while leaving a high-profile Sarasota proposal tied to the U.S. Recycling site on pause.

The money comes from Resilient SRQ, Sarasota County’s Community Development Block Grant Disaster Recovery allocation for the catastrophic 2024 storms. Awards are paid out as reimbursements, not upfront grants, and projects can’t receive the money until they clear a required HUD environmental review and sign formal agreements with the county.

Despite the unanimous vote, the meeting’s most pointed discussion was not about the projects that won money. It was about the one that didn’t—a contested parcel and a partial-dollar question.

That application was for Ekos Cocoanut, a 158-unit proposal associated with McDowell Housing Partners that would place a mid-rise affordable building on a central Sarasota parcel that neighbors and advocates have long linked to toxic dust, truck traffic and other negative health impacts from the U.S. Recycling operation on Industrial Court. McDowell Housing Partners is a Miami-based affordable housing developer that builds and operates multifamily communities, including projects in North Port.

Commissioners did not award Ekos Cocoanut the $15 million it requested. Instead, after selecting other projects up to the $30 million cap, the board directed staff to send a letter asking whether the remaining $3,075,248 in the program could make the Ekos proposal viable and bring a response back to the board as soon as possible.

The commissioners debated whether a partial award would move the project forward or simply leave the county with a symbolic commitment that does not close a financing gap. Staff told commissioners the application includes a letter of intent related to purchasing the property and referenced acquisition costs a little over $5 million. Commissioners weighed that against the reality that the overall project, as discussed during the meeting, is substantially larger than the remaining funds.

What McDowell Says It’s proposing

Chris Shear, president of McDowell Housing Partners, described Ekos Cocoanut as a seven- to eight-story, 158-unit development with a parking garage and amenities typical of newer multifamily buildings, including a fitness room, community space, pool, work or computer areas and dog areas. He said the units would serve households at 30 percent, 60 percent and 70 percent of the area median income, with one-, two- and three-bedroom apartments. He also said the project does not require a zoning change.

Shear said the county grant request was designed to fill a major gap in a larger financing package he described as a combination of developer equity, tax credit equity and long-term debt. He said that if the project does not receive the full $15 million award, McDowell would continue pursuing other options, including local and state sources.

Ron Kashden, a neighborhood advocate involved with the Central Cocoanut Neighborhood Association, framed the project as a chance to pair workforce housing with a potential path off a years-long conflict over an industrial use in a largely residential area. Kashden described a five-year campaign involving multiple agencies and argued that the most workable resolution is a sale and redevelopment of the U.S. Recycling property, which handles construction and demolition debris recycling. Kashden also described health and enforcement concerns related to dust and trucking, and public speakers pointed to elevated cases of asthma and other respiratory issues for nearby residents. And Suncoast Waterkeeper says it intends to sue U.S. Recycling, alleging the site’s stormwater runoff is polluting Hog Creek, which flows into Sarasota Bay. The group claims water sampling showed elevated pollutant levels, including metals like aluminum and iron, that exceed benchmark guidelines, and says the discharges violate the federal Clean Water Act.

Commissioners acknowledged the project’s stakes took a step designed to test whether the remaining money could help the deal move, or whether the gap is too large for partial funding to matter.

What Was Funded and What Was Asked

The board decided on four awards, totaling $26,924,752, leaving $3,075,248 unallocated pending the Ekos Cocoanut inquiry. 

Rosedale, North Port

A 106-unit project in North Port, with 106 affordable units and an affordability period listed as 40 years or more.

Applicant: Community Assisted and Supported Living Inc. (CASL)
Requested: $11.2
Awarded: $11.2

Parkside Villages, Venice

A 10-unit project in Venice with an affordability period listed as 40 years or more.

Applicant: Family Promise of South Sarasota County, Inc.
Requested: $2 million
Awarded: $2 million

Lakeview Village, Sarasota

A 25-unit project in Sarasota with an affordability period listed as 40 years or more.

Applicant: Harvest Tabernacle of Sarasota, Inc., dba Harvest House
Requested: $2.5 million
Awarded: $2.5 million

Applicant: Family Promise of South Sarasota County, Inc.
Requested: $2 million
Awarded: $2 million

Lakeview Village, Sarasota

A 25-unit project in Sarasota with an affordability period listed as 40 years or more.

Applicant: Harvest Tabernacle of Sarasota, Inc., dba Harvest House
Requested: $2.5 million
Awarded: $2.5 million

#Development, #Sarasota County Commission, #Affordable Housing