Developer Cuts Affordablehousing Requirement In Allapattah Project
Written by Deserae del Campo on December 22, 2005
By Deserae del Campo
The Miami City Commission last week allowed a developer to cut the number of affordable-housing units in an Allapattah project because of high construction costs.
"Construction costs have increased, making the construction of 74 affordable-housing units economically unfeasible" at Wagner Square, according to a city document.
The project is rising on land developer Alberto Milo acquired from the city in May 2003. "Construction costs have gone up almost double since we started our project almost two years ago," Mr. Milo said.
"Starting from May 2003, construction prices have risen significantly, reducing the number of affordable-housing units for this project down to 52," said Otto Boudet, the city’s chief of planning and economic development. "This resolution is a modification to affordable-housing requirements."
Of the 52 affordable-housing units in the project, 24 will be workforce housing, designated "for nurses, teachers, firemen and people that are not low-income but of moderate income," said Mr. Milo. "Unlike affordable housing, there is no government assistance. There is also low inventory accommodations for workforce housing."
According to city records, the 14-story Wagner Square is to include 171 parking spaces. Mr. Milo has estimated the cost of the project at $5 million.
The developer committed to building two residential towers containing 99 units each. At least 74 of the units would have been sold as affordable housing, according to the land-acquisition agreement.
Groundbreaking for Wagner Square is slated for February. It is among several residential towers planned for the Civic Center area.
Among them is Wagner’s Place – not affiliated with Wagner Square – at 1511 NW 15th Court. The $5 million project is to rise to 17 stories and include 87 parking spaces and 60 units, none of them affordable housing.