Sarasota City Manager to pitch new affordable housing idea

Sarasota’s most common policy complaint likely echoes any of Florida’s booming metro areas: Affordable Housing.

More than half of Florida’s middle-income families are burdened by their housing costs, according to the National Low-Income Housing Coalition. A 2023 study by the University of Florida found Sarasota County ranks fifth in the state for the highest rents, with prices increasing by 42% since July 2020.

Those who cannot afford the luxury condos that dot the downtown skyline have been priced out.

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Sarasota City Manager Marlon Brown has been with Sarasota since 2009, first as deputy city manager before taking over the department in 2021. Frustrated by what he saw as a lack of tangible progress, Brown will propose to the City Commission a new housing measure he says is novel in its concept and aims.

It is called the Downtown Sarasota Affordable Workforce Housing Initiative. Brown sees it as a middle solution for middle-income renters – in which Sarasota would buy two parcels of land across the street from City Hall to build two, twelve-story residential buildings that the city would own and fix the rents below the costly market rates in a downtown that has become a sightseeing tour for luxury, European cars.

At the next City Commission meeting, Brown will ask officials to kickstart the project by approving the purchases on First Street, which will cost about $7.4 million.

In a letter dated April 15 addressed to city commissioners, Brown said it was time for the city to take direct action.

“While some might question the government’s intervention in these matters, solely relying on the private sector has not yielded significant results,” Brown wrote. “We cannot remain passive as the demand for affordable/attainable workforce housing surges.”

The city manager told the Herald-Tribune the project was an “experiment in frustration.”

“We’ve talked and talked and talked and talked about affordable housing. We have talked about creating policies and programs, but nothing has been done,” Brown said.

The design by Hoyt Architects envisions about 200 total units for about 400 individuals – with commercial spaces on the ground floor and three floors of about 280 parking spaces.

The presentation focuses on middle-income workers, using firefighters, police officers, nurses, and teachers in the marketing materials.

In comparison: For the lowest prices at the brand-new apartment building Aster & Links on Main Street – an 865-square-foot one-bedroom, one-bathroom apartment goes for $2,925. A 1,134-square-foot two-bedroom, two-bathroom goes for $4,017.

Units at the city-owned residential building would be determined by the number of people in a household’s application and their income weighed against the Sarasota region’s area median income (AMI) – the median income of a four-person household. In the Sarasota region, it is $98,700, according to the Department of Housing and Urban Development - more than 11% higher than the rest of the state and more than 32% higher than the U.S. real median household income in 2022, according to the Census.

At the proposed city-owned residential buildings, a household of four making the AMI would pay a maximum of $2,468. One making $78,960 – 80% of the AMI – a year or less would pay $1,828.

Utilities would be included in the rent.

The plan originally called for more space, but the First Street Credit Union would not allow its space to be bought. Brown said he offered the credit union first-floor commercial space to no avail. Now, it may be flanked by two 12-story buildings.

The city manager’s requests also include for the commission to allow him to work with the city development team for the management and design of the project, contact and share the plan with other government entities – such as the Florida state government – or non-profits who may be interested in becoming funding partners, and allocating money to an Affordable Housing Trust Fund to “make up the difference for the property acquisitions,” according to the presentation materials.

The proposal would not have been legally possible without the recently passed density bonus and the state’s Live Local Act.

To Brown, the plan is a rejection of so-called “nimbyism,” or “not in my backyard," the idea that people want affordable housing built as long as it isn't near them personally.

Brown named three philanthropic benefactors who would share the cost of buying the property with the city: the Barancik Foundation, the Community Foundation of Sarasota, and the Gulf Coast Community Foundation. The plan calls for the three to split the cost of more than $7 million.

Jon Thaxton, the Senior Vice President for Community Leadership at the Gulf Coast Community Foundation and a former Sarasota County Commissioner, said his group planned to donate $1.5 million. However, he said, “nothing has been finalized.”

“There have to be provisions within the contractual language that assure that the foundation’s money is going towards affordable housing, and not for anything else,” Thaxton said.

If all goes according to plan, the financial commitment could come within the year. Thaxton, a longtime advocate for affordable housing, added that he approved Brown’s selection of buildings.

“This is probably the single most appropriate location for affordable housing anywhere in the county,” Thaxton said.

A spokesperson for the Barancik Foundation said in an email that they have pledged $1.5 million toward the project. However, “that commitment is contingent on provisions in the final agreement with the City regarding affordability in perpetuity and restriction on being able to sell the property.”

A spokesperson for the Community Foundation of Sarasota said they have had conversations with the city, but could not confirm a funding promise.

Brown’s goal is to begin building construction in mid-2025 – after the city finds a Project Development Manager and team, input from the city’s Development Review Committee and Planning Board, a design process, and city permitting.

Richard Harris, President of the Sarasota Coalition of City Neighborhood Associations, said Brown’s presentation of the project at Saturday’s meeting was a hit among residents and stakeholders. Although the CCNA has not discussed the proposal in depth at a meeting, Harris said he supports the project.

The only criticism Brown received was concerns about parking space. Brown said he has yet to commission a traffic study on the impact of the residences. He anticipates downtown’s walkability would mitigate congestion.

The county’s Affordable Housing Advisory Committee, of which Thaxton and City Commissioner Erik Arroyo are members, will likely advise on a system for processing applications for the buildings — whether to prioritize those who already live locally or how to factor in income levels and family sizes.

“I would like the commission to consider using this group to come up with all the criteria under which individuals would qualify for renting these units,” Brown said.

The city manager bristled at classifying his plan as “government-subsidized housing.” The towers would be designed for middle-class households. Brown is confident that between the residential and commercial rents, they will be self-sustaining, if not profitable.

His goal was clear: The city-owned properties must remain affordable in perpetuity without a private developer taking over and raising the rents to match the rest of downtown.

Contact Sarasota Herald-Tribune Local Government Reporter Christian Casale at ccasale@gannett.com. Follow him on Twitter @vanityhack

This article originally appeared on Sarasota Herald-Tribune: Sarasota city manager to pitch a city-owned residence project