Key to this meeting was the Triangle Project, which Luna Development presented as a transformative venture for Homestead. The project envisioned the creation of residential, commercial, and retail spaces designed to be pedestrian-friendly and community-oriented. Luna’s representatives laid out a plan that included affordable housing and public spaces, with a projected aggressive completion date set for Q2 2026. The total development cost was estimated at $51 million.

Board members scrutinized the project’s financials, expressing concerns about the city’s financial involvement and the proposed density of 45 to 50 units per acre, which could potentially increase. There was confusion regarding the inclusion of “Orangeburg” in the project documentation, attributed to a clerical error. The absence of Luna’s representation at parts of the meeting raised questions, and members sought clarification on updated figures and the financial trajectory of the project.

The board was particularly attentive to the terms and financial impact of the proposed 99-year ground lease. The lease’s structure, with a 1.2x stabilization coverage and a 7% capitalization rate, was under scrutiny, as members aimed to understand how the city would benefit financially from the project. Leah from Rebel Group provided insights into the project’s financial structure and the potential for a successful partnership with the city. Board members were keen on obtaining ballpark figures on the city’s compensation for the land use.

Another topic of considerable debate was the proposal to finance the development through a ground lease that would allow all cash flow to return to the CRA. The public-private partnership model was proposed to ground lease the land, construct the building, and then lease it back to the CRA or the city, with eventual ownership transferring to the CRA or the city. Members called for basic financial models to assess the project’s viability accurately and ensure equitable benefits for both the developer and the city. The board authorized the city manager to begin negotiations to refine the financial details and return to the board for further review.

Additionally, the meeting led to the approval of a resolution authorizing the executive director to enter into an agreement for the purchase of real property on Southwest 2nd Avenue using American Rescue Plan Act (ARPA) funds totaling $2.2 million. Despite the purchase price being 8.2% above the appraised value, the executive director justified the cost, citing a demanding negotiation process with the current owner. The agency debated the merits of the purchase, considering the need to vacate and demolish the existing building and the potential benefits to the community. The board ultimately approved the purchase.