Collier workforce housing, vet nursing home inching forward

An affordable workforce housing project on the Golden Gate Golf Course that was granted an extension in May by Collier County commissioners received Department of Housing and Urban Development approval, with construction expected to begin this fall.

Commissioners also asked county staff to prepare state paperwork for the county’s 120-bed State Veterans Nursing Home and Adult Health Day Care Center on the same 165-acre site at Collier Boulevard and Golden Gate Parkway.

The Board of County Commissioners heard project updates at its June 25 meeting. Commissioner Burt Saunders requested updates after nonprofit Rural Neighborhoods President Steve Kirk told commissioners May 28 that the housing project was delayed due to HUD. That prompted commissioners to vote 4-1, with Chairman Chris Hall voting nay, to provide a fourth extension for Renaissance Hall at Old Course.

“I think, Mr. Chairman, your comment at that meeting that if Mr. Kirk needed another extension that it would cost him $100,000 in a nonrefundable deposit. I think that might have gotten his attention,” Saunders said, adding that Kirk worked diligently to move it forward.

Kirk told commissioners June 25 that HUD’s National Loan Committee unanimously ratified financing June 18 and issued a firm commitment two days later to insure the $58 million first mortgage. That loan was contingent upon HUD approval, and on June 24, Prudential’s PGIM Real Estate issued its loan commitment.

“Our next step is to move to … a simultaneous closing, all the financing for the project,” Kirk said, adding that it would take about 75 days, but Prudential and HUD require a Sept. 20 closing. After that, he said, Naples-based builder DeAngelis Diamond will be issued a notice to proceed.

Construction on Phase 1 will take 24 months and will provide 252 rentals for essential services workers—government and university employees, fire and police personnel, health care workers, teachers and construction workers. There will be nine buildings and a clubhouse on 22 acres. Rent will be 80% to 120% of the area median income, $104,300. Phase 2 will offer 120 rentals for low-income seniors and veterans.

The county purchased the golf course for $29.1 million in 2019 to prevent overdevelopment and to maintain an affordable public golf course. In June 2020, Rural Neighborhoods was selected as the developer but the project hit delays due to COVID-19, hurricanes and other issues. Under a 99-year county contract, it will lease about 22 acres for $10 yearly and will build and manage the development.

The developer also has a binding $10 million grant agreement with Moorings Park Foundation, Richard M. Schulze Family Foundation and Community Foundation of Collier County, which advanced $1 million in financing. There also are state grants through the county, including a State Housing Initiatives Partnership loan, that are a condition of closing.

Permitting process is expected to take about 10 days, Growth Management Head Jamie French told commissioners.

Also planned for the property is the veterans nursing home, a redesigned public-private golf course and entertainment center by an Arthrex affiliate and the nonprofit First Tee youth-golfing program.

Commissioners directed County Manager Amy Patterson to have staff prepare the required real property documents and appraisal of the roughly 22 acres pledged for construction of the State Veterans Nursing Home. The project was estimated at $120 million last year, with the county paying 35% of the construction costs.

Saunders, an attorney, former state senator and representative, said he’s been trying to shorten time frames to get construction moving forward. To do that, he said, the county must send the state a deed for the property, made out to the state. He suggested staff develop a deed and escrow agreement so the property can be held in escrow by the state so there’s no delay in providing the land once funding is available.

There are 10 state nursing homes statewide, and veterans have to travel more than an hour to Port Charlotte for care. Collier has about 22,000 veterans, a number that’s expected to grow.

The county placed $30 million of Infrastructure Sales Surtax funds into escrow for the nursing home, while $10 million for the Adult Day Health Care and outpatient therapy services was approved by commissioners but remains in the county’s Infrastructure Surtax Fund. In addition, the state Legislature appropriated $10.5 million for the project.

On April 9, the state submitted two construction grant applications to the VA, one for the 65% match for the State Veterans Nursing Home and another for authorization for construction of an adjoining Adult Day Health Care facility. The county won’t receive matching funds for that portion.

Full VA approval is expected next year, with the design taking about a year in 2026, construction taking about 1½ years and completion expected in 2027 or 2028.