Unsoliciate Proposal- Tangerine Plaza 2022

Sugar Hill Apartments

Proposal Submission

for

1794 - 22nd STREET SOUTH

ST.

PETERSBURG, FLORIDA, 33712

Prepared By:

Sugar Hill Group, LLC

une 24

, 2022

For:

CITY OF ST. PETERSBURG

e  

City of St. Petersburg

Division of Real Estate and Property Management

P.O. Box 2842, St. Petersburg, FL 33731-2842

Re. Proposal for Tangerine Plaza Located at 1794 – 22

Street South St. Petersburg, Fl 33712

City of St. Petersburg:

The Sugar Hill Group, LLC is pleased to present our proposal to redevelop and revitalize Tangerine Plaza.

We welcome the opportunity to work in collaboration with the City of St. Petersburg and its many

stakeholders. Our group continues to be interested in working with the City on the revisions to our

original proposal.

We share the City’s goal of creating a vibrant, mixed-use development which appropriately serves South

St. Petersburg’s low-income and workforce families and seniors. Our team will work together to:

 Develop and build affordable/workforce housing on the site

 Create and preserve jobs in South St. Petersburg

 Explore development uses which are ancillary to the residential units and can serve as an

amenity to the community

We have a proven track record of successful community-building working closely with community leaders and

governmental entities to secure job creation and affordable housing within a Community Revitalization Area

{CRA).

Thank you for your consideration, if you have any questions please contact me at 727-492-3411 or

rbinger@bingerfinancial.com

Sincerely,

_________________

Roy Binger

Sugar Hill Group, LLC

_________________________

Rev Louis Murphy, Sr.

Sugar Hill Group, LLC

__________________________

Oliver L. Gross

Sugar Hill Group, LLC

Sugar Hill Apartments

Sugar Hill Group, LLC

une 2022

Development Summary

Our vision to participate in the revitalization of the Deuces Community consists of the planned

development which is outlined below for your convenience.

Sugar Hill Group, LLC (SHG) intends to redevelopment the City Owned site into a mixed-use

community focused development. SHG’s vision is to develop a newly constructed mixed-use building

that will provide residential dwelling units for families as well as a retail/ commercial space located

adjacent to one of th

e residential buildings. The proposed newly constructed buildings will include

amenities and features consistent with market standards with adequate parking for all residents and

guests. Amenities will include a fitness/ wellness center, community room, computer/ business center

and in unit washer and dryers for each dwelling unit. As a response to the affordable housing disparity

that is currently seen across the nation, and specifically present in the City of St. Petersburg, SHG is

committed to marketing and leasing all dwelling units to moderate and low-income residents of the

community. The target demographic will be family-housing; therefore the unit mix will contain one-,

two- and three-bedroom unit types. The residential unit mix that makes up the one hundred and fifteen-

five (115) residential units are thirty-four (34) one-bedroom units, fifty-eight (58) two-bedroom units

and twenty-three (23) three-bedroom units. SHG will also commit to providing a green energy building

that follows the Nation Green Building Code to minimize the carbon footprint and create a sustainable,

high-quality development. All of the residential units will have income and rent restrictions for the

tenants to ensure the development is achieving its goal to provide a sustainable living environment for

the community. The residential units will be marketed and leases to community residents who’s

household incomes meeting the HUD standard income limits for 80% or below Average Medium

Income (AMI). A portion of the total units will be earmarked for future residents who’s AMI is low or

very low (60% AMI and below) creating a truly inclusive residential development plan for the Deuces

community.

In connection with the 115 residential , the development plan includes approximately

10,000 square feet of commercial or retail space for future tenants. The commercial component will

be located adjacent to one of the residential buildings, designed to front 22

Street S, enhancing the

curb appeal of the site. The commercial space will provide an opportunity for future businesses to

provide goods and service to local community residents within the Deuces community, City of St.

Petersburg and the residents who will ultimately reside in the residential units. SGH will prioritize

supporting local small business enterprises to fit the space, although the end user of the commercial

will be determined by tenant credibility, local participation, and overall benefit to the community.

Zoning:

The current zoning allows for approximately 86 units, and with the affordable/ workforce housing

bonus, approximately 115 total units. The city owned site is approximately 3.6 acres (approx. 156,816

sqft), SHG and with our architect and engineering team, has developed a conceptual site plan that

provides 115 dwelling units and 10,000 sqft of commercial retail space, maximize the total use of the

land. It is important to also note that 210 parking spaces as well as open green space earmarked for

outdoor amenities. A site plan has provided in Exhibit A of this proposal.

In our site analysis and conceptual design, we understand that the site has the capacity to produce

additional units above the current zoning allowance. This can be achieved by a rezoning of higher

density for workforce housing and successfully utilizing legislation HB 1339 which grants local

governments the authority to establish criteria that would allow developers to apply to build

affordable housing in zoning districts. Please note that SHG would like to request to utilize future

density modifications approved by the City of St. Petersburg if mutually agreed upon by developer

and City Staff.

Sugar Hill Apartments

Sugar Hill Group, LLC

une 2022

Financial Plan and Development Budget for Residential Buildings

SHG is proposing a financing strategy that would support both the residential and commercial

phases of the development plan. The capital stack for the residential development will reflect a

traditional 4% LIHTC Tax Exempted Bonds transaction. SHG plans to utilize local Pinellas County

bonds from the Housing Finance Authority paired with both State and City subsidies. SHG,

understands that the application process to obtain a bond inducement from the Pinellas County HFA

are accepted and reviewed on a rolling basis, this is important as it allows SHG to pursue financing

almost instantly once site control is obtained. SHG has solicited Letter of Intent for the purchase of

the Bonds as well as the Tax Credit Equity, these LOI’s are provided in Exhibit B of this proposal.

SHG plans to apply for affordable housing subsidies to support the Debt and Equity derived from

the affordable units. This includes Penny4Pinellas, SAIL/ SAIL ELI and other potential local

contributions from the CRA. SHG’s partner New Urban Development (NUD) has had recent success

in being selected for the allocation of the 2019 Florida Housing Finance Corporation’s SAIL funding

cycle for a development currently under construction. NUD also currently has multiple successful

partnerships with both Miami-Dade County and the City of Miami in efforts to provided affordable

housing.

SHG, through the development experience of New Urban Development has experience in

successfully obtain subsidies at every municipal level (City, County, State, Federal). Below is a

snapshot of the sources and uses SHG is underwriting in relation to this RFP response.

Acquisition Terms:

Ground Lease: 75 Year ground lease between Sugar Hill Group, LLC and the City of St.

Petersburg. Payment for the ground lease will be one million, five-hundred thousand dollars

($100,000) in the form of a capitalized lease payment. Payment in relation to the ground lease will

occur at the financial closing.

Purchase Option: Sugar Hill Group, LLC would like to reserve the right to negotiate the purchase of

the city owned land throughout the duration of the ground lease. Acquisition price of the land will be

in support of a third-party appraisal.

Sources

Amount

Permanent Debt

$10,800,000

State/ City Funding

$12,740,000

Private Equity (LIHTC)

$12,236,000

Developers Equity

$1,524,123

Total

$37,300,123

Uses

Amount

Hard Cost

$24,636,150

Soft Cost

$12,563,973

Acquisition

$100,000

Total

$37,300,123

Sugar Hill Apartments

Sugar Hill Group, LLC

une 2022

Unit Mix and Bedroom Type

Proposed Unit Mix

1BD

2BD

3BR

Total

Sugar Hill Apartments Unit Mix

6558

115

Proposed Rents Based on Current Average Median Income levels.

1BD

2BD

3BR

Number of Units

80% AMI

$1,232

$1,478

$1,708

60% AMI

$924

$1,108

$1,281

30%AMI

$462

$554

$640

Development Team Experience

The project team possesses a combined 118 years of community development experience, including

commercial project development and finance expertise; affordable and market rate housing development

and finance (for ownership and rental properties); small business development and capital access; and

human and social services aiding low-income residents of high-poverty communities, including East

Tampa, South St. Petersburg, and Miami- Dade County neighborhoods of Overtown, Liberty City and

Little Haiti.

The Proposer entity for purposes of this proposal is Sugar Hill Group, LLC. The Sugar Hill Group,

LLC partners will include Rev. Louis Murphy, Sr., Roy Binger, and New Urban Development (NUD).

This Partnership was created to ensure the success and financial feasibility of housing program

requirements. The group will also ensure strong local community support, support letters from local

Pinellas County stakeholders are provided in Exhibit C of this proposal.

The detailed resumes for each member are included below.

Oliver L. Gross, President

Project Role: New Urban Development, LLC

Oliver Gross currently serves as President of New Urban Development, LLC a wholly owned

subsidiary of the Urban League of Greater Miami, Inc. Mr. Gross, thru New Urban, has primary

responsibility for the acquisition, development, construction oversight, financing and property

management of the myriad of commercial and residential housing developments owned and/ or managed

by the Urban League of Greater Miami, Inc. and its subsidiary entities (the “League”). Mr. Gross has

experience as a real estate developer, public administrator, and commercial banker. Mr. Gross has earned

certifications as a Real Estate Development Professional and a U.S.HUD Certified Occupancy Specialist.

Rev. Louis M. Murphy, Sr.

Project Role: Senior Equity Partners

Rev. Louis M. Murphy, Sr. has dedicated his pastoral career to kingdom building, inside and outside

the walls of Mt Zion Progressive Missionary Baptist Church, where he was installed as Pastor in May

1999. He entered the ministry with a life-long track record in secular leadership. A one-time Drum Major

for the famous Florida A&M Marching 100 band, a former non-commissioned Marine Corps officer, and

a 4-year District Executive for the West Central Florida Council of Boy Scouts of America, Rev. Murphy

Sugar Hill Apartments

Sugar Hill Group, LLC

une 2022

brought his passion for service to Mt Zion Progressive. Rev. Murphy’s business and experience includes

over a decade in the corporate sector as a purchasing agent and manager for the St. Petersburg Housing

Authority, the St. Petersburg Times and Florida Progress. In his role as Senior Pastor of Mt Zion

Progressive Missionary Baptist, Rev. Murphy led the congregation to pay-off the church’s $2.1 million

mortgage 13 years ahead of schedule, before spearheading a multi-year campaign to redevelop the Mt

Zion campus. The effort has so far resulted in Mt Zion’s acquisition of over 20 parcels of land in areas

adjacent to Mt Zion’s three-story headquarters, and the church’s redevelopment of 50,000 square feet of

space across multiple buildings owned by the congregation. Rev. Murphy’s has purchased and

rehabilitated two residential properties in South St. Petersburg and acquired land to begin a third project.

Roy Binger, CEO, Binger Financial Services, LLC

Project Role: Financial Strategy

Roy Binger is CEO and Founder of Binger Financial Services, LLC. The company specializes in

property and casualty insurance, personal insurance, commercial lending, and commercial real estate

solutions. Mr. Binger received his bachelor’s degree in Economics from Holy Cross College in

Massachusetts, an MBA at the University of Miami in Finance, and graduated from the Emory Executive

Advanced Leadership Program, Guizueta Business School. He was the CEO for a local community bank

Peoples Bank, Miami, Florida. As the Senior Vice President, Retail Group Executive for Huntington

Bank, Roy oversaw the expansion of a loan portfolio of over $1 billion while maintaining one of the

lowest business banking delinquency ratios at the bank. He also served as Executive Vice President for

one of SunTrust Bank’s largest divisions, overseeing $12 billion in assets, and as City President for

SunTrust Bank St. Petersburg. With over 25 years in the financial sector he is uniquely qualified to

highlight risk management and commercial lending solutions to maximize profits within the guidelines

of client’s risk tolerance for growth. Some of the financial solutions provided to clients include directors

and officers’ insurance, trade credit insurance, bonds, mergers, private equity and commercial loans,

which help companies gain strong footing in the financial world. He has been awarded the Tampa Bay

Business Innovator of 2013 award and was inducted into the Florida Business Hall of Fame. Roy

currently serves on the boards of several organizations, including the Museum of Fine Arts and the

University of South Florida, St. Petersburg. Locally, he was instrumental in working with the City of St.

Petersburg to bring a financial institution to the Midtown area. He worked on the TLM initiative that is

bringing a gas station and convenience store to Midtown; and insured the St. Petersburg College Midtown

building and the Isaiah project with the Brayboys. As a former member of the USF Board of Advisors,

he was part of the process that led to the development of a student center and a school of business. Roy

was also part of the team that led the sale of Bayfront Medical Center for $205 million.

Keith Franklin, Vice President of Development

Project Role: New Urban Development, LLC

Keith Franklin currently serves as the Vice President of Development to New Urban Development a

subsidiary of The Urban league of Greater Miami, New Urban specializes in building quality, affordable

housing for families within Miami’s urban core, while meeting the highest quality standards for

apartment living and designed to foster a sense of community. Keith is an accomplished real estate

professional who is intricately involved in sourcing project funding, underwriting new developments and

asset acquisitions. He brings a diverse experience to New Urban Development with over 15 years in the

Finance, Construction Management, and Real Estate Development industries.

Sugar Hill Apartments

Sugar Hill Group, LLC

une 2022

Ahmad J. Zachary, Project Manager

Project Role: New Urban Development, LLC

Ahmad currently serves a development manager to New Urban Development a subsidiary of The

Urban league of Greater Miami, New Urban specializes in building quality, affordable housing for

families within Miami’s urban core, while meeting the highest quality standards for apartment living and

designed to foster a sense of community. From concept through construction and lease up, Ahmad is

intricately involved in sourcing project funding, underwriting new developments and asset acquisitions

this includes developmental research, application submissions, narrative analysis and development

financing.

Jason Jensen, AIA, LEED AP, Principal, Wannemacher Jensen Architects, Inc.

Project Role: Lead Architect

Jason joined the firm in 2002. After gaining experience in New York City, he returned to St.

Petersburg with a goal to innovate architecture for this generation in the Tampa Bay area. Throughout

his career, Jason has worked on a range of project types, styles, scales, and budgets. His work is highly

awarded by various entities and recognized by a long roster of international media. His thorough

approach focuses on respecting the space and its intended use, relating the building to its site, and adding

value with purposeful, thoughtful, memorable designs. Jason manages processes and communications to

translate visions and desires of clients into cohesive designs and master plans. A University of Florida

graduate, Jason remains active with the UF School of Architecture as a guest critic and lecturer. He also

has been a guest critic/lecturer at the University of South Florida, Pratt University, Urban Land Institute,

and Green Building Council.

He earned a Master of Architecture from the University of Florida and is the recipient of numerous

awards in the field, including the University of Florida Eduardo Garcia Award, the 2016 AIA Tampa

Bay H. Dean Rowe FAIA Award for Design Excellence - Madeira Beach City Hall, the 2011 AIA Tampa

Bay Environment Sustainability Award, COTE - Largo Community Center; and the 2009 AIA Tampa

Bay H. Dean Rowe FAIA Award for Design Excellence - Roberts Recreation Center.

Recent and Relevant Development Experience

Following this page are three recently affordable housing developments that New Urban Development

currently owns and operates in Miami, FL. Through various strategic partnerships, over 1,300 units of

affordable housing units have been delivered. At present, New Urban Development has over 1,500 units

in our current and active pipeline. Through following the strategies set forth by our executive management

team, NUD continues to successfully meet its goals and performance metrics while also providing

unparallel service to our communities.

New Urban Development has facilitated the development of over thirteen housing projects. While also

providing leadership in the management of eight properties. To date NUD has approximately $100MM in

projects in the permitting and pre-construction phase. Additionally, the portfolio also has approximately

$120M in site-controlled projects in various phases of pre-development. All of NUD’s properties are

currently targeting the affordable/workforce market and our primary residents include single parents,

female heads of household, the disabled, seniors, and working families.

Located in Miami, Florida, Superior Manor is the first of a

two-phased development plan to provide quality affordable

housing to the neighborhood of Liberty City. Designed

and financed to meet the needs of elderly, affordable

housing, the units are leasable residents who meet the age

requirement of 65+. The property consist of 139 residential

units, with onsite amenities such as a community room,

business center, in-unit washer and dryer, fitness center and

rooftop terrace. Superior Manor Apartments was completed

in November 2018.

SUPERIOR MANOR APARTMENTS, PHASE I

Located in Miami, Florida, The Villages Apartments is the first of a two-phased development plan to provide

quality affordable housing to the neighborhood of Liberty City. The Villages Apartments is a multifamily 150-unit

development for families who meet the necessary income limits. The property consist of 150 residential units

across two buildings, with onsite amenities such as a community room, business center, in-unit washer and

dryer, fitness center, outdoor playground and swimming pool. The property was completed in April 2018.

THE VILLAGES MIAMI APARTMENTS, PHASE I

Historically known as Sugar Hill

Apartments, this property is a storied

part of Miami’s urban community. Built

in 1956, many through the years have

called its 12 buildings and 132 garden-

style, walk-up apartments home.

Later renamed Renaissance at Sugar

Hill, in the 1990s it was purchased

by the Urban League (and later New

Urban Development) at the request

of Miami-Dade County leaders. The

organization operated it for some time,

eventually moving all the residents

out so the property could undergo a

much-needed renovation. Renaissance

now has enjoyed a renaissance of its

own. Today, with all twelve buildings

completed, it includes a new Community

Center and a computer center. On-site

staff, management and maintenance

ensure the property’s preservation and

management’s interaction with tenants

to create a comfortable home for its

residents.

RENAISSANCE AT SUGAR HILL



Sugar Hill Apartments

Sugar Hill Group, LLC

May 2022

Site Plan Configuration and Conceptual Unit Layouts

210 Parking Spaces

18th Ave S

21st St S

Queensboro Ave S

22nd St S

211 Existing Parking Spaces

Prior to Re-Development

Park/Playground

13,500 sf

(34) 1 Bedroom

(58) 2 Bedroom

(23) 3 Bedroom

28 - (4) 1 Bedroom

56 - (8) 2 Bedroom

21 - (3) 3 Bedroom

7 Floor Plates:1/2 Floor Plate:

(6) 1 Bedroom

(2) 2 Bedroom

(2) 3 Bedroom

115 Units

queen

40 1/2"

queen

40 1/2"

queen

40 1/2"

queen

40 1/2"

queen

40 1/2"

queen

40 1/2"

queen

40 1/2"

queen

40 1/2"

queen

40 1/2"

queen

Commercial

10,000 sf

queen

17,775 sf / Level x 8 Floor Plates

142,200 sf Total Development Area

Parking:

Residential:

<750 sf = .5/unit

>750 sf = 0.75/unit

3 BR = 1.25/unit

Non-Residential:

Office = 1/400sf

Retail/Sales = 1/300sf

School (K-9) = 2/Classroom or Office

School (10-12) = 4/Classroom or Office

queen

K-7506

PURIST

KITCHEN SINK FAUCET

METAL

AHU

queen

K-7506

PURIST

KITCHEN SINK FAUCET

METAL

AHU

queen

K-7506

PURIST

KITCHEN SINK FAUCET

METAL

AHU

queen

K-7506

PURIST

KITCHEN SINK FAUCET

METAL

AHU

queen

K-7506

PURIST

KITCHEN SINK FAUCET

METAL

AHU

30 Units @ 1560 sf

3 BR / 2 BA

65 Units @ 970 sf

2 BR / 2 BA

queen

40 Units @ 625 sf

1 BR / 1 BA

queen

40 1/2"

queen

K-7506

PURIST

KITCHEN SINK FAUCET

METAL

AHU

(<750 sf = .5/unit x 34 Units)

17 Parking Spaces

(>750 sf = .75/unit x 58 Units)

43.5 Parking Spaces

(3 Bedroom = 1.25/unit x 23 Units)

28.75 Parking Spaces

89.25 Parking Spaces

(Residential)

(= 10,000 sf x 1/300 sf)

33.33 Parking Spaces

(Commercial)

123 Total Parking Spaces Required

Unit Mix:

105 Units10 Units

Parking:

210 Total Parking Spaces Provided

156,695 sf Property Area

0.91 FAR Proposed

queen

40 1/2"

queen

Sugar Hill Apartments

Sugar Hill Group, LLC

May 2022

Letters of Intent

June 23, 2022

Oliver Gross

Sugar Hill Group, LLC

136 4th Street N

Suite 354

Saint Petersburg, FL 33701

Re: Project: Tangerine Plaza

Partnership/Applicant: Sugar Hill Group, LLC

Dear Mr. Gross,

Red Stone Equity Partners, LLC (“Red Stone”) is pleas ed to be given an opportun ity to s ubmit a propos al for

Tangerine Plaza (“Project”). This letter serves as an outline of the business terms regarding the acquisition of Investor

Membership interests in a to-be-formed Limited Liability Company (the “Company”) that will own the Project. Red

Stone or its designee (the “Investor Member”) will acquire a 99.99% Investor Member interest (the “IM Interest”) and

a 0.00% special Inves tor Membership interest (the “SIM Interest”) in the Company. The terms of this proposal are

subject to ratification and countersignature by Red Stone’s inves tment committee as described below. Furthermore,

this proposal is neither an expressed nor implied commitmen t by Red St o ne o r an y o f it s affiliat es t o p ro v ide eq u it y

financing to the Project. Any such commitment shall only be as s et forth in a to -be-negotiated agreement of Investor

Membership and will be subject to, among other things, (i) satisfactory transaction structure and documentation, (ii)

satisfactory due diligence, including third party reports and (iii) other standard conditions for transactions of this type

as described more fully in Paragraphs 11 and 12 below.

1. Project Information. The Company has been formed to acquire, own, develop and operate the Project, which is

anticipated to be eligible to claim Low Income Housing Tax Credits (“Housing Credits”) under Section 42 of the

Internal Revenue Code. The residential unit mix shall conform to any other set-asides as required by the Florida

Housing Finance Corporation (“Agency”). The means for such conformance shall be reviewed by and be

acceptable to Red Stone.

2. Project Ownership. The ownership will be a single purpose, taxable, bankruptcy remote entity with a 0.01%

ownership interest in the Company. Any change in the ownership of the Manager shall be subject to Red Stone’s

consent. The anticipated ownership structure and other key Project participants are set forth below.

En ti t y

Name

Ownership Interest

Applicant/Owner

Sugar Hill Group, LLC

Manager

To-be-formed

0.01%

Developer

Sugar Hill Group, LLC

Investor Member

RSEP Holding, LLC or its designee

99.99%

Special Investor Member

Red Stone Equity Manager, LLC,

0.00%

Tangerine Plaza

June 23, 2022

Page 2

Gu a ran t o rs

Developer and Manager

Ge n era l Co n t ra ct o r

TBD

Property Manager

TBD

3. Tax Credits. The Project is expected to receive an allocation of 4% Hous ing Credits from the Agency.

The Anticipated Housing Credit Request is $1,330,086

The total Housing Credits anticipated to be delivered to the Company is $13,300,863 (the “Projected Federal

LIHTC”)

The total anticipated dollar amount of housing credit allocation to be purchased is $13,299,533

The total amount of equity to be provided by Red Stone to the Project is $12,236,000 which is approximate ly

$0.92 per Housing Credit (“Credit Price”).

Total equity paid prior to construction completion will be $5,319,813

4. Adjus ters.

A. Increase or Decrease in Housing Credits . To be determined at a late date subject to the approval by the

partners.

B. Timing of Housing Credit Delivery. To be determined at a late date subject to the approval by the

partners.

5. Res erves . The Company will fund the following res erves:

A. Operating Reserve. The Company will fund and maintain an Operating Reserve to be determined at a

later date.

B. Replacement Reserve. The Project operating expenses will include the funding of a Replacement

Res erve in the amount to be determined at a later date.

6. Guar antees . The Guarantors will guarantee the following obligations of the Manager:

A. Cons truction Completion Guarantee.

B. Operating Deficit Guarantee

C. Repurchas e Guarantee.

D. Housing Credit Shortfall and Recapture Gu a ra n t ee .

E. Environmen t al Indemnification .

Tangerine Plaza

June 23, 2022

Page 3

F. Gu ara n t o rs . The Guarantors will guarantee all of the Manager’s obligations including thos e set forth

above. The Guarantors will maintain a minimum liquidity and a minimum net worth as determined by

Red Stone. The Guarantors will provide Red Stone with annual financial statements evidencing

compliance with the liquidity and net worth covenants above.

7. Construction. The Manager will arrange for a Cost Plus Contract with a Guaranteed Maximum Price s ubject to

the approval by Florida Housing Finance Corporation.

8. Fees . The following fees will be paid by the Company for services rendered in organizing, developing and

manag in g t h e Company and the Project.

A. Developer Fee. The Developer will earn a developer fee in an amount not to exceed Florida Housing

Finance Corporation Guidelines.

B. Property Management Fee. The terms of the property management agreement, are subject to the prior

approval of Red Stone.

C. Asset Management Fee. The Company will pay Red Stone an annual asset management fee in an amount

equal to $7,500 per annum. The asset management fee will be paid annually and such fee shall acc rue

beginning on the placed in service date, and each anniversary thereafter. The asset management fee will

increas e annually by 3%.

E. Incentive Management Fee. An incentive management fee may be payable to the Manager on an annual

basis in an amount determined by and acceptable to tax counsel to Red Stone.

9. Distribution of Tax and Cash Benefits .

A. Tax Benefits. Tax profits, tax losses, and tax credits arising prior to the sale or other disposition of the

Project will be allocated 99.99% to the Investor Member, 0.00% to the Special Investor Member and

.01% to the Manager. The Investor Member will have the right in its sole discretion to undertake a

limited deficit res toration obligation at any time during the term of the Company.

B. Net Cas h Flow Distributions . Distributions of net cash flow, as defined in the Company Agreement.

C. Distributions upon Sale or Refinance. Net proceeds resulting from any s ale or refinance will be

distributed as defined in the Company Agreement.

10. Purchase Option and Right of First Refusal. For a period of two (2) years following the 15-year LIHTC

compliance period, the Manager shall have an option to purchase the Project at the end of the compliance period

for a purchase price equal to the greater of (i) fair market value or (ii) the sum of the amount of indebtedness

secured by the Project, which indebtedness may be assumed b y t h e Manager at its discretion, the amount of the

federal, state, and local tax liability that the Investor Member would incur as a res ult of the sale and any amount

of credits below the amount stated in Paragraph 3.

Tangerine Plaza

June 23, 2022

Page 4

11. Due Diligence, Opinions and Financial Projections . The Manager will satisfy all of Red Stone’s due

diligence requirements, including an acceptable local law opinion. The Inves tor Member’s tax couns el will

provide the tax opinion. The Company will reimburse the Investor Member an amount equal to $50,000 toward

the costs incurred by the Inves tor Member in conducting its due diligence review and for the cos ts and expenses

of Red Stone’s counsel and in connection with the preparation of the tax opinion, and for the costs of Red

Stone’s other third party reports . Red Stone may deduct this amount from its first Capital Contribution and

such amount will be payable to Red Stone in the event the Manager elects not to close the transaction for any

reas on. The financial projections to be attached to the Company Agreement and that support the tax opinion

will be prepared by Red Stone bas ed on financial projections provided by the Manager. The Manager financial

projections will include eligible basis calculations, sources and uses, and cash flow statements.

12. Company Closing. Final Company closing will be contingent upon Red Stone’s receipt, review and approval

in its sole discretion of all due diligence including the items s et forth on its due diligence checklist to be

delivered to the Manager. Final Company closing also is contingent upon (i) a satisfactory site visit conducted

by Red Stone to determine overall market feasibility, including an analysis of proforma rents and expenses, (ii)

Red Stone’s review and approval of all third party reports and the construction budget, and (iii) review and

approval of any shared use, cost sharing or reciprocal easement agreements with the previous phase. Red

Stone’s agreement to acquire the Interest on the pricing, terms and conditions contained in this letter are further

based on the assumption that the Company closing will occur in 2022. Terms and credit pricing herein shall be

valid until such date. Notwithstanding the forgoing, if any terms materially deviate from the terms or

assumptions set forth herein, either party may cancel this proposal without penalty or liability to the other.

Remainder of page left intentionally blank.

Tangerine Plaza

June 23, 2022

Page 5

Please confirm your acceptance of the terms described in this letter by signing the enclosed counterpart and

returning to us at the addres s set forth on the first page of this letter. The terms of this letter are not binding until

countersigned and accepted by an authorized officer of Red Stone.

Sincerely,

By:

Name: Chris Murray

Title: Managing Director

The undersigned approves and accepts the terms of this letter agreement and agrees to work with Red Stone.

MANAG IN G MEMB E R: MANAGIN G MEMB E R:

By: _________________________ By:

Its : _________________________ Its:

Date: _________________________ Date:

GUARA NTOR : GUARA NTOR :

By: _________________________ By:

Its : _________________________ Its:

Date: _________________________ Date:

Authorized Signatory

6/23/22

350 West 5

Avenue, Suite 4830 | New York, NY 10118 | 212-297-1800

www.redstoneco.com

via e-mail

June 21, 2022

Oliver L. Gross

Authorized Signatory

Sugar Hill Group, LLC

136 4

Street, Suite 354

Saint Petersburg, FL 33701

Re:

Sugar Hill Apartments

St. Petersburg, Florida

115 Units

Dear Mr. Gross,

Red Stone A7 III, LLC (“Red Stone”) is pleased to present Sugar Hill Group, LLC or its affiliates (the

“Sponsor”) with the following proposal to purchase up to $19,000,000 of tax-exempt bonds which shall

be used to construct the property and provide permanent financing as outlined below, issued by Florida

Housing Finance Corporation (the “Issuer”)

for the benefit of the above referenced property (the

“Property”). The bond purchase shall hereinafter be defined as the facility (the “Facility”).

This letter sets forth the basic business terms and conditions of Red Stone’s proposed financing, as well

as summarizes key assumptions that Red Stone used in preparation of this proposal that were provided to

us by the Sponsor or its representatives.

Structure

Red Stone will provide the Facility by purchasing approximately

$19,000,000 of fixed rate tax-exempt bonds (the “Bonds”) directly or through

its designee. The Bonds shall mature 40 years after the closing, subject to

redemption prior to maturity as described below.

At or prior to Stabilization, as defined below, $8,200,000 of Bonds shall be

redeemed at par without any premium and the permanent bond amount shall

be $10,800,000 (the “Permanent Bond Amount”).

Red Stone will purchase the Bonds at issuance and the proceeds will be lent

to the Borrower pursuant to the loan agreement (the “Loan Agreement”) to

used to pay a portion of the costs incurred by the Borrower for the

acquisition of the land and construction of the Property.

The documents evidencing the Facility shall contain covenants,

representations and warranties customarily provided in financing documents

for bond financings of this size and nature.

Borrower

Sugar Hill Group, LLC (the “Borrower”). The Borrower and [GP ENTITY]

(the “General Partner”) shall each be a single-purpose, bankruptcy-remote

entity.

350 West 5

Avenue, Suite 4830 | New York, NY 10118 | 212-297-1800

www.redstoneco.com

Guarantors /

Key Principals

[GUARANTOR ENTITY] (the “Guarantor”, Guarantors subject to Red

Stone approval) shall provide guarantees of certain specific obligations of the

Borrower, as described herein. Guarantors will be required to maintain a

minimum amount of net worth and liquidity (cash & cash equivalents)

through Stabilization (amount and forms to be reasonably determined during

underwriting). The Guarantor shall be jointly and severally obligated for

certain non-recourse carve-outs as described herein.

Property

The Property, known as Sugar Hill Apartments, will be a newly constructed

multifamily apartment complex, located in St. Petersburg, Florida, consisting

of 115 units. The Property will include 34 one-bedroom units, 58 two-

bedroom units, and 23 three-bedroom units

comprising approximately

120,000 net rentable square feet. The units will rent between 30% and 80%

of AMI.

Capital Expenditures

Funds necessary to construct the Property will be deposited into an escrow

account (the “Project Fund”) to fund capital expenditures on a schedule and

with terms approved by Red Stone prior to the Closing Date.

The construction of the Property will be for a period no longer than 24 months

from the Closing (the “Construction Period”).

During the Construction

Period, amounts in the Project Fund shall be disbursed to the Borrower from

time to time, not more often than monthly, as the construction progresses

upon submission of a proper requisition with proof of completion of work

and approval of such requisition by Red Stone and its consulting engineer.

The Borrower will spend approximately $20,405,000 ($177,440 per unit) in

hard costs for the construction of the Property. Any monies remaining in the

Project Fund at the end of the Construction Period which are not needed for

capital items approved by Red Stone prior to the Closing Date shall be used

to pay developer fee then used to redeem Bonds.

NOI

Red Stone’s proposal is based on the pro-forma NOI of $670,812 (subject to

Red Stone confirmation). This figure assumes a 5.00% vacancy rate, a 5.00%

must-pay management fee, and $300

/unit/year in replacement reserves

(subject to confirmation by Red Stone’s underwriter and engineer).

Debt Sizing

Red Stone is sizing the Permanent Bond Amount based on a minimum 1.15x

Debt Service Coverage Ratio and a maximum 90.0% Loan to Value Ratio.

Upon completion of the Construction, the Loan Documents shall contain a

stabilization requirement (“Stabilization”) as defined below.

Stabilization

Stabilization shall mean the point at which the ratio of net operating income

of the Property for the prior three months to a maximum principal and interest

payable in any three month period equals or exceeds 1.15 to 1.0 and the

average monthly occupancy in each of the three consecutive months equals

at least 90%. For purposes of the foregoing, net operating income shall be (a)

the lesser of (i) actual Property income or (ii) actual Property income adjusted

to reflect 5.0% economic vacancy over (b) the greater of (i) actual Property

expenses in the aggregate or (ii) projected expenses in the aggregate

350 West 5

Avenue, Suite 4830 | New York, NY 10118 | 212-297-1800

www.redstoneco.com

determined in Red Stone’s underwriting (except for expense line items

relating to property taxes, insurance and utilities which shall in all cases be

actual).

Notwithstanding the above, Stabilization of the Property will occur no later

than 36 months from the Closing Date (the “Stabilization Period”).

Extension

A one-time 6 month extension of both the Completion Period and

Stabilization Period shall be allowed, provided the Borrower is not in default

and the payment of an extension fee equal to 0.20% of the Bond Amount.

Bond Interest / Ongoing

Fees

Beginning on the date of delivery of the Bonds (the “Closing”) interest will

be paid monthly at a fixed rate of 4.50% per annum on the Bonds. This rate

is set to equal the sum of (i) the 17 year SIFMA Swap Rate (currently 1.40%)

and (ii) a spread of 3.10% per annum on the Bonds.

In addition to the above stated interest rate, the Borrower will pay all trustee

and issuer fees associated with the transaction.

Term of Bond Purchase

Upon the 17 Year Anniversary of Closing, Red Stone shall have the option,

with 6 months’ notice, to require a mandatory tender of the Bonds.

Termination

Optional Prepayment of the Facility shall be prohibited until 16 years after

the Closing Date. Thereafter, the Bonds may be paid off at par.

Interest Only Period

36 Months

Amortization

After the Interest Only Period, an amount of the Facility equal to Permanent

Bond Amount shall be subject to mandatory redemption in part in monthly

installments sufficient to amortize such Bonds fully over 40 years.

Origination Fee

Construction

Administration Fee

1.00% of the Facility amount ($190,000) payable to Red Stone at Closing.

Stabilization Fee

At the time the Borrower submits for Stabilization, the Borrower will pay a

one-time fee of $6,000 to cover the Stabilization costs of Red Stone Servicer,

LLC.

Completion &

Stabilization

Guarantees

The Guarantors shall jointly and severally guarantee the lien-free completion

of the construction prior to the end of the Construction Period, payment of

all costs associated with the construction

, and any payment required to

achieve Stabilization.

LIHTC Equity

In addition to the Bonds, the acquisition and construction of the Property will

be funded through the sale of Federal Low Income Housing Tax Credits (the

“LIHTCs”). The Sponsor estimates that the proceeds from the sale of the

LIHTCs will generate approximately $12,236,000 of proceeds for investment

350 West 5

Avenue, Suite 4830 | New York, NY 10118 | 212-297-1800

www.redstoneco.com

Other Sources

in the Property. The LIHTC investor is required to invest a minimum of 10%

of their total LIHTC equity contributions at Closing. The additional terms

and pay-in commitments of the LIHTC proceeds is subject to Red Stone

review.

The acquisition and construction of the Property shall also be funded with

$12,740,000 of state, city, and county subsidies, with Deferred Developer

Fee covering the remainder (the “Soft Funds”). Any payments due under the

Soft Funds shall be subordinated to Red Stone’s Facility.

MORTGAGE AND NOTE TERMS:

Security / Collateral

The Facility shall be secured at all times by the following items: (a) first

priority mortgage lien on the Property; (b) first priority assignment of leases

and rents; (c) a collateral assignment of the management agreement and all

project documents; (d) a general partner/managing member pledge; (e) a

developer fee pledge; (f) the aforementioned guaranties; (g) assignment of

capital contributions in respect of the tax credits; (h) an environmental

indemnity from the Borrower and the Guarantors.

Other Costs

Borrower shall be responsible for all closing costs and expenses of

compliance with this proposal including, but not limited to costs of issuer,

bond counsel, issuer’s counsel, tru

stee’s counsel, and Red Stone’s counsel.

During the Construction Period, the Borrower shall be responsible for third-

party inspection draw fees in an amount estimated not to exceed $1,500 per

month per property. The Borrower shall also be responsible for any title and

transfer costs associated with the transaction. In the event that the proposed

transaction does not close for any reason other than the failure of Red Stone

to comply with its obligations hereunder, Borrower shall be responsible for

all third-party costs and out-of-pocket costs

incurred by Red Stone not

satisfied by the Application Deposit.

Property Management

The property management company and the management contract shall be

subject to approval by Red Stone. The property management fee shall be

5.00% of Effective Gross Income and any amount in excess of 5.00% shall

be subordinate to payment of interest on the Bonds, third-party fees, and

mandatory redemption/sinking fund payments.

Application

& Legal Deposit

Application Deposit: $25,000

To be applied to the cost of preparing the third-party appraisal, engineering,

and environmental reports, and Red Stone’s out-of-

pocket underwriting

costs. Any unused portion of the deposit shall be returned to the Borrower.

Said deposit is payable upon the execution of this financing proposal by

Borrower.

Legal Deposit: $25,000

350 West 5

Avenue, Suite 4830 | New York, NY 10118 | 212-297-1800

www.redstoneco.com

An additional deposit is required to commence legal documentation.

However, this deposit is

not payable upon the execution of this financing

proposal by the Borrower.

Reserves & Escrows

Monthly payments to escrow accounts held in the partnership name by the

Bond Trustee will be required for

taxes, insurance premiums, and

replacement reserves. Any draws from the escrow accounts shall require Red

Stone’s consent. The initial replacement reserves will be set at $300 per unit

per year (subject to confirmation by Red Stone’s underwriter and engineer).

Operating Reserve

The Borrower has budgeted the funding of a permanent operating reserve

(the “Operating Reserve”) in the amount of approximately $645,000. Upon

Stabilization, the Borrower shall deposit this amount into a reserve held by

the LITHC equity investor. The Operating Reserve shall be used for debt

service payments and/or operating deficits during the Bond Term and Red

Stone’s approval shall be required for any other releases of the Operating

Reserve during the Bond Term. The Operating Reserve shall be released to

the Borrower per the following schedules, assuming the DSCR benchmarks

below are met. Any amount of the Operating Reserve that is released will be

supplemented with guarantees by the Guarantors

that have combined net

worth of $5 million and liquidity of $1 million at the time of the release, not

including the reserve released.

Exclusivity

Upon execution of this financing proposal, the Sponsor agrees (i) to cease its

efforts to obtain financing from other sources, (ii) to terminate any other

financing proposals currently in process and (iii) to not sell, lease, or transfer

the Property (or any interest therein). This exclusive arrangement shall

terminate should Red Stone notify the Sponsor in writing that it does not

intend to proceed with this transaction. Breach of this exclusivity clause shall

cause both the Origination Fee and Construction Administration Fee, and any

out-of-pocket due diligence costs and legal fees incurred by Red Stone, to be

immediately due and payable to Red Stone.

Due Diligence /

Conditions to Closing

Red Stone and its agents shall have 45 days to perform due diligence from

the later of the date on which Red Stone receives an executed copy of (i) this

proposal and the

Application Deposit and (ii) necessary preliminary due

diligence information as requested by Red Stone. During the due diligence

period, Red Stone’s due diligence shall include, but not be limited to,

engineering and environmental investigations, bond document review, title

and survey review, market analysis, satisfactory review of borrower/sponsor

financial statements, and other investigations deemed appropriate by Red

Stone. At its sole discretion, Red Stone has the right, at any time during the

due dil

igence period, to decline to proceed with this proposal and shall not

be under any obligation to the Borrower. In the event Red Stone declines to

proceed with this proposal, the Application Deposit (less actual out-of-pocket

costs incurred by Red Stone and authorized hereby) and the Legal Deposit

(less all fees and costs actually incurred by Red Stone’s counsel) will be

returned to the Borrower.

350 West 5

Avenue, Suite 4830 | New York, NY 10118 | 212-297-1800

www.redstoneco.com

Budgets / Reporting

The Borrower shall provide Red Stone or its designee with an annual budget

for operations and capital expenditures to be approved by Red Stone within

30 days of submission.

Periodic reporting requirements shall include

delivery of operating statements, occupancy reports, rent rolls, and other

reports reasonably requested by Red Stone.

Borrower shall provide to Red Stone an annual audit report of each Property’s

financial statements from a firm approved by Red Stone not more than 120

days after the end of each fiscal year.

Other

At closing, Red Stone will purchase the Bonds directly or indirectly with a

designee through a placement agent or underwriter at no cost to the Borrower.

The designee (usually a large financial institution) will abide by all the terms

included in this term sheet. To the extent permitted by the Issuer, the Bonds

will be issued in book-entry-only

form and purchased through a DTC

participant selected by Red Stone.

Red Stone reserves the right to sell, assign, or participate all or part of their

interests in the Facility in a form they find satisfactory, provided the sale does

not adversely affect the Borrower or increase the costs, expenses, or

obligations of Borrower. Red Stone shall notify the Borrower of any transfer.

The Borrower shall cooperate fully with Red Stone in this matter and shall take

all actions reasonably requested by Red Stone and the new participant, but will

not be required to enter into any documents which are materially adverse to the

Borrower. The Borrower shall not incur any costs or additional liability from

any such transfer or securitization.

Offer Expiration

If the terms set forth in this letter are satisfactory, please indicate your

acceptance by executing and returning to Red Stone a copy of this letter and

the Application Deposit before July 29, 2022. If you have not done so by

such date, this proposal shall expire and be of no further effect.

350 West 5

Avenue, Suite 4830 | New York, NY 10118 | 212-297-1800

www.redstoneco.com

This letter is a proposal to purchase of up to $19,000,000 of tax-exempt bonds. This letter does not

constitute a commitment or approval to lend or purchase in any manner. Any commitment by Red Stone

to lend or purchase the Bonds is contingent upon the completion and ratification by Red Stone’s Board of

Directors of our due diligence review.

Very truly yours,

Red Stone A7 III LLC

Cody Z. Langeness

President

Agreed and Accepted:

Sugar Hill Group, LLC

By:

Name:

Title:

Date:

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ored aory



Sugar Hill Apartments

Sugar Hill Group, LLC

May 2022

Letters of Support

To: Tangerine Plaza Proposal Review Committee

Re: Letter of Support

Date: May 18, 2022

This is in support of the Sugar Hill Group LLC and New Urban Development proposal to

develop Tangerine Plaza, located at 1794 -22

Street South St. Petersburg. In September 2019,

the Community Service Foundation Inc. acquired 21 single family properties within the South St.

Petersburg Community Redevelopment Area. Our 80-year-old Foundation is dedicated to

community development and affordable housing; this acquisition provided an opportunity to

preserve affordable housing in perpetuity.

Our transaction for the South St. Petersburg properties is directly attributed to the leadership of

Roy Binger and Pastor Murphy, who facilitated the process to secure the funding. Sugar Hill

Group LLC and New Urban Development has the financial capacity to fulfill its proposed multi-

purpose affordable housing and retail development.

Also, being embedded in the South St. Petersburg Community means that the Sugar Hill Group

and New Urban Development have lived experiences with community members. This will

ensure that its proposed development reflects the heritage and culture of South St. Petersburg.

Most importantly, the Tangerine Plaza project represents a unique opportunity to fill the gap of a

fresh grocery option; this aligns with Pastor Murphy’s and Roy Binger’s commitment to the

health and wellness of South St. Petersburg residents.

For these reasons, the Community Service Foundation Inc.’s Board of Trustees strongly endorses

the Sugar Hill Group LLC and New Urban Development proposal to develop Tangerine Plaza.

We respectfully request your consideration to award the Tangerine Plaza Development to Sugar

Hill Group LLC and New Urban Development.

Sincerely,

Edward A. Thiebe

Executive Director

A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING

TOLL-FREE WITHIN THE STATE, (800) 435-7352. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL OR RECOMMENDATION BY THE STATE. THE

FLORIDA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES REGISTRATION NUMBER IS CH7457. COMMUNITY SERVICE FOUNDATION RECEIVES

100-PERCENT OF ALL CONTRIBUTIONS.

AFFILIATED WITH THE NATIONAL URBAN LEAGUE, INC.

333 – 31

Street North

St. Petersburg, FL 33713

Phone: (727) 327-2081

Fax: (727) 321-8349

Website: www.pcul.org

E-Mail: [email protected]rg

Supported By:

May 18, 2022

To Whom It May Concern:

Please accept this letter on behalf of the Pinellas County Urban League (PCUL), in support

of the Sugar Hill Group, LLC application for the revitalization efforts of the Deuces

Community to provide affordable housing residential units for moderate and low-income

residents.

Although the City of St. Petersburg has strongly invested on infrastructure, housing

rehabilitation, neighborhood infrastructure and programs, and economic development

projects, persistent economic hardship remains high in South St. Petersburg. The Urban

League has a keen interest in the success of this revitalization effort and wholeheartedly

support Sugar Hill Group’s objectives in creating new housing and job opportunities to

local low-income residents of the Midtown community.

Since the PCUL chapter inception in 1978, we have worked tirelessly to improve the lives

of citizens in the areas of youth development, health, education, housing and community

empowerment, employment and crime prevention. These efforts have led to countless

collaborations and partnerships with various community organizations and entities.

The Urban League has had direct correlation with New Urban Development and its

projects in Miami, FL. Through our well-established partnership, our organization has

witnessed firsthand their strong commitment in responding to housing disparities, green

energy and creating a culture of opportunity in targeted communities. Additionally, we

have firsthand knowledge that this group has a track record of successfully completing

commercial development projects. We applaud their effort to support the revitalization

and redevelopment of our community and help enhance economic and housing

opportunities for residents in South St. Petersburg.

In closing, we hope you will carefully review and approve Sugar Hill Group’s application.

Should you have any questions or require additional information, please feel free to

contact me via email at [email protected].

Sincerely,

Rev. Watson L. Haynes, II

President & CEO

WLH:lza

Pinellas County Urban League, Inc.

Building for Equal Opportunity

OFFICERS

CHAIRPERSON

RODNEY WILSON

JP MORGAN CHASE

FIRST VICE-CHAIRPERSON

LESLEY PRICE

HOOTERS MANAGEMENT CORPORATION

SECOND VICE-CHAIRPERSON

TONJUA WILLIAMS, PH.D.

ST. PETERSBURG COLLEGE

SECRETARY

JEFF BAKER

DUKE ENERGY

ASSISTANT SECRETARY

BETTYE J. NEWSOME

THURGOOD MARSHALL FUNDAMENTAL

MIDDLE SCHOOL

TREASURER

JOE BOURDOW, CFE

PREMIER FRANCHISE ADVISORS

ASSISTANT TREASURER

GRANT MCMILLON

MORNEAU SHEPPELL

PRESIDENT & CEO

REV. WATSON L. HAYNES, II

BOARD MEMBERS

MOSES ALLEN, PHARMD

SUNSHINE HEALTH

DAVID O. ARCHIE

CITIZENS ALLIANCE FOR PROGRESS, INC.

ULYEE CHOE, DO

FLORIDA DEPARTMENT OF HEALTH

IN PINELLAS COUNTY

CAPRICE EDMOND

CAPRICE, INC.

MAJOR MATTHEW FURSE

ST. PETERSBURG POLICE DEPARTMENT

PATTI S. HELTON, PH.D.

UNIVERSITY OF SOUTH FLORIDA

ST. PETERSBURG CAMPUS

CINDY M. INNOCENT, ESQ.

GUERRA KING LAW FIRM

ALBERT KAMINSKY

CHARTER COMMUNICATIONS

CAROL MICKETT, PH.D.

MICKETT-STACKHOUSE STUDIO, LLC

ALVIN C. NESMITH

RETIRED MANAGER, TAMPA BAY TIMES

RABBI EMERITUS MICHAEL TOROP

TEMPLE BETH-EL

PRESIDENT EMERITUS

JAMES O. SIMMONS

May 18, 2022

Mr. Roy Binger

Sugar Hill Group, LLC

146 2nd Street N., Suite 310N

St. Petersburg, Florida 33701 RE: Tangerine Plaza

Dear Roy:

The 2020 Plan /One Community Plan is pleased to support the partnership and joint venture of

Sugar Hill Group, LLC and New Urban Development, LLC, to develop much needed affordable

housing and commercial spaces that enrich the landscape of the Deuces corridor.

Community-led development of the kind reflected in your vision for Sugar Hill is central to the

strategies embodied in the One Community Plan, which include bridging new partnerships that

build the capacity of African Americans to lead the revitalization of the historic 22

Street

corridor.

It would be ideal to see the City of St. Petersburg partner with the Sugar Hill Group to realize the

potential of the site, through joint exploration of mainstream and community tenants for new

commercial spaces.

The location of the project also feeds the synergy of Sugar Hill and Sankofa on the Deuces as

bookends to the 12 blocks that encompass the historic “Black main street.” The two project teams

are already leveraging points of synergy such as:

• A new Market Study by GAI Consultants to reflect the fast-changing residential landscape and

labor market in the South St. Petersburg CRA;

• Joint support of tenant marketing by Tahisia Scantling, CEO of Right Turn Realty, who is

courted potential tenants to both locations; and

• A partnership to build-out the City-supported South St. Petersburg Development Fund.

We look forward to continued collaboration with you and the team to ensure the success of the

project.

Yours in Service,

Gypsy C. Gallardo, M.P.P., CEO

The 2020 Plan, Inc. & One Community

and Managing Member, The Sankofa Group