HomeMy WebLinkAboutSEOPW-CRA-1996-10-28-Discussion Item 08CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Chairman and Members DATE: October 21,1996 FILE:
of the Board
Community Redevelopment Agency SUBJECT: Discussion of CRA
� c Land Disposition
FROM: Herbert J. Bailey
Executive Direct
Community Red
REFERENCES:
ENCLOSURES:
It is respectfully requested that the CRA Board discuss the possibility of selling a
number of CRA owned properties currently leased to the private concern on a
long term basis.
The GE Capital Inc., current owner of the Arena Towers property, has put the
property on market, however the property's long term land lease arrangement
with the CRA has turned away some of the interested investors. According to
the GE Capital Inc., the current market value of the improvements is estimated to
be much less than what it would have been should the property was sold on a fee
simple basis.
When the City of Miami originally negotiated these leases with the selected
developers in 1988, the impact of developers' defaults on the, marketability of the
property with long term land leases was not clear. It may be wise to revisit this
issue and consider selling those properties leased on long term basis to interested
investors along with the improvements.
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CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Chairman and Members DATE:' October 21,1996 FILE
of the Board
Community Redevelopment Agency SUBJECT: Arena Square Apartments
�; Property
FROM: Herbert J. Bailey REFERENCES:
Executive Director ENCLOSURES:
Community Redevelop ent ency
Mr. Salomon Yuken, President of New Arena Square North & South Ltd., is
requesting to make an appearance at the next CRA Board meeting. Mr. Yu�en is
in the process of acquiring the 550 units Arena Square Apartments (Property)
located in three different areas of Overtown. On July 25, 1996, the City
Commission adopted a Resolution to award $1.25 million of housing rehab
monies for the said Property.
The Property was rehabilitated in 1991 with the proceeds of approximately $12.5
million Affordable Housing Bonds (Bonds), Affordable Housing Tax Credits, and
$885,210 City of Miami Multifamily Rehab Loan. It is important to note that
both Bonds and City Loan are in default and as a matter of fact, the City and
Bondholders have concluded the foreclosure proceeding on the Property.
It is our understanding that Mr. Yuken is offering certain restitution to the
holders of the Bonds; and allow the tax credit syndicaters to continue to receive
tax credit benefits. Nevertheless, Mr. Yuken has not offered any restitution to
the City with respect to the unpaid $885,210 loan, therefore we- are
recommending against giving any more City funds to the Arena Square
Apartments property.
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sEOPtivi� • l
NEW ARENA SQUARE NORTH & SOUTH LTD.
1023 N.W. 3 Avenue
Miami, Florida 33136
Tel. (305) 372-1383
Fax. (305) 381-6801
October 17, 1996
Mr. Herbert Bailey
Executive Director
Community Redevelopment Agency
300 Biscayne Boulevard
Miami, Florida 33131
Dear Mr. Bailey:
The present will serve as our request to be included in the Agenda
for the Agency Board Meeting of October 28, for the purpose of
presenting the plans and objectives for the rehabilitation of the
12 Buildings, 550 units, Arena Square Apartments.
On July 31, 1996, the Miami City Commission approved $1,250,000.00
Loan as the Public Sector contribution to the estimated
$9,000,000.00 cost of the total Rehabilitation Project that will
be funded by the Private Sector.
Since the City of Miami Commission's approval was subject to the
review and approval of your Board, it is the reason of our request
to be in the Agenda for the presentation.
Will appreciate your confirmation on the above for which attention
we thank you.
Sincerely,
N@w Arena Square North & South Ltd.
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