Peary Court Purchase Decision To Go To Voters

By Pru Sowers

Konk Life Staff Writter

Voters will be the ultimate decision makers on whether to spend $55 million to preserve Peary Court as workforce housing.

Key West City Commissioners voted 6-1 at their Nov. 17 meeting to put the matter in front of voters on the March 15 election ballot. Between now and then, there will be an abundance of information passing from City Hall staff to voters, including the physical condition of the 157 units on the property, what the tax implications will be to borrow the money, and who will get to live in the housing complex.

As for that last question, City Manager Jim Scholl said it is likely that most of the current residents of Peary Court, where residents pay $2,500 for a two-bedroom apartment, will meet income requirements to stay in what will become a moderate income complex. Under those guidelines, rents would be reduced to an estimated $2,358.

That was one of the problems Commissioner Sam Kaufman had with the proposed deal, where the city would purchase approximately 24 acres of the 26-acre property from the current owner, White Street Partners. (White Street Partners would keep just over two acres and build another 48 units of affordable housing and manage those units independently from Peary Court.)

“We’re going to spend $55 million so people who are currently living there will then save $142 a month on their rent. That’s the net of what will happen,” Kaufman said. “Another big problem is we’re not adding to the housing stock of affordable housing.”

Commissioner Jimmy Weekley, who sponsored the ballot resolution and who first approached White Street Partners to ask if they would be willing to sell the property that they paid $35 million for two years ago, acknowledged that the purchase would benefit the existing tenants in Peary Court. But he said if the city does not purchase the property, White Street Partners will likely sell off the units as condominiums, forcing out the tenants and turning the property into a neighborhood of second home owners.

“This is a community of people who don’t want to lose their homes,” he said. “There would be 157 families out in the streets looking for a place to live.”

The $55 million purchase price, which White Street Partners has already informally agreed to accept, would be financed by 30-year bonds, with a $10 million down payment coming from existing Monroe County Land Authority funds. White Street Partners originally wanted to turn the complex into luxury housing but couldn’t get approval from the Key West Historic Architecture Review Commission to move ahead. After that setback, the partner group said it intended to continue to operate the rental complex as is while building the additional 48 units of affordable housing.

Commissioner Billy Wardlow also questioned whether purchasing Peary Court was the best use of $55 million. He said he wanted to use the Land Authority funds to building 50 new affordable units each in the Truman Waterfront Park, Poinciana Plaza and on city-owned land on Stock Island. Those additional 150 units would probably not cost $55 million to build, he said.

“But I don’t have a problem with it going to the voters and let them have their voice on this,” Wardlow said.

“I believe there are a number of issues and questions we need answers to but I believe we have to ensure we can save this property. I just think we have to,” said Commissioner Clayton Lopez.

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