The URL can be used to link to this page

Home My WebLink AboutSEOPW-CRA-M-97-0009RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY AND RELATED HOUSING INC., FOR THE PROVISION OF UP TO TWO MILLION DOLLARS ($2,000,000) IN COMMUNITY DEVELOPMENT BLOCK GRANT FLOAT FUNDS, IN THE FORM OF A LOAN FOR A TWO (2) YEAR I PERIOD AT THREE PERCENT (3%), TO FINANCE THE CONSTRUCTION OF 24-UNIT PHASE ONE DEVELOPMENT OF THE PROPOSED LYRIC VILLAGE TOWNHOUSE I PROJECT LOCATED AT NORTHWEST 1 ST AND 2ND AVENUES, AND NORTHWEST 8T" AND 10T" STREETS. WHEREAS, the Community Redevelopment Agency for the Southeast Overtown/Park West Redevelopment District ("CRA") issued Request for Proposals for the development two CRA-owned blocks("Property") located at Northwest 81h and 10t" Streets, and Northwest 1st and 2nd Avenues; and WHEREAS, on October 28, 1996, the CRA accepted the development proposal submitted by Lyric Village Housing Inc. ("Developer), a joint venture of Related Housing Inc. and St. John Community Development Corporation, for the purpose of developing a 96 unit townhouse project on the Property; and WHEREAS, on December 16, 1996, the CRA Board authorized the CRA to execute land disposition and development agreements with the Developer; and WHEREAS, the Developer has requested a low interest rate Community Development Block Grant Float Loan in the amount of $2.0 million to finance the -1- SEOPWICAA 9 7 - 9 construction of Phase 1 development; and WHEREAS, the Developer, as borrower, agrees that loan agreement with the City will stipulate all of the terms and documents required by the City as well as those required by the United States Department of Housing and Urban Development; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF i MIAMI, FLORIDA: i i! Section 1. The recitals and findings contained in the Preamble to this Resolution are i hereby adopted by reference thereto and incorporated herein as it fully set forth in this Section. 1 Section 2. The City Manager is hereby authorized to negotiate and execute on behalf I I of the City, in a form acceptable to the City Attorney, an agreement between the City of Miami and Related Housing Inc. for the provision of up to a $2.0 million loan from Community Development Block Grant Float funds to finance the construction of 24-unit Phase 1 development of the proposed Lyric Village Townhouse project located at Northwest j111and 2"d Avenues, and Northwest Oland lYh Streets, subject to the approval of the City Attorney as to form and correctness, said loan to be for a two (2) year period at three percent (3%) with a fee to be charged to the Developer at a cost factor to be applied which shall be as justified and approved by the City Manager. 1 Section 3. This Resolution shall be effective immediately upon its adoption pursuant to law. -2- SEOPW/CRA 9 7 _ PASSED AND ADOPTED this ATTEST: Walter Foeman, City Clerk PREPARED AND APPROVED BY: day of , 1997. Joe Carollo, Mayor Linda K. Kearson, Assistant City Attorney APPROVED AS TO FORM AND CORRECTNESS: A. Quinn Jones, III, City Attorney -3- SEOPWICRA 9 7 _ 9 CITY OF MIAMI, FLORIDA i INTER -OFFICE MEMORANDUM i TO: Honorable Chairman and Board of Director&TE ; FILE Community Redevelopment Agency SUBJECT: Proposed Agenda Item for a CD Float Loan FROM: Herbert J. Bailey,,."Isb, REFERENCES Executive Dire o Community Redevelo mg gency ENCLOSURES: Attached agenda item, submitted to the City Manager's Office for inclusion in the upcoming City Commission meeting, requesting a $2.0 million CD Float Loan from the City of Miami for the purpose of financing the construction of 24 unit Phase 1 development of the proposed Lyric Village townhouse project. On October 26, 1996, the CRA Board approved a development proposal submitted by Lyric Village Housing Inc. ("Developer"), a joint venture of Related Housing Inc. and St. John CDC, to build a 96-unit townhouse development on the above referenced CRA-owned property. The CRA Board subsequently authorized the execution of the property disposition and development agreements with the Developer at its December 16, 1996 meeting. The Phase 1 project consists of 24 townhouses, eight 2Bd/2Bth and sixteen 3Bd/2Bth, sizes ranging from 1100 s.f. to 1600 s.f. with projected sales prices from $73.9K to $89.5K. The requested CD Float Loan with a low interest rate will assist the Developer to reduce the cost of construction and insure the delivery of units affordable for the prospective low to moderate income families. The Developer has acknowledged that the proposed CD Float Loan will be contingent on the Developer's ability to obtain an irrevocable letter of credit, from a financial institution acceptable to the City, equal to the loan amount and callable at the City's discretion. Therefore, the City will not assume any financial risk by issuing the proposed CD Float Loan to the Developer. At the same time, the City's action will provide a significant financial assistance to this worthy project. SEOPW/CRA 9 7 - 9 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members DATE: FILE j of the City Commission SUBJECT: CD Float Loan for Lyric Village Housing Project FROM : Edward Marquez REFERENCES: City Manager ENCLOSURES: RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached Resolution authorizing the City Manager to negotiate and execute an agreement, in a form acceptable to the City Attorney, between the City and Related Housing Inc., for the provision of up to two million dollars ($2,000,000) in Community Development Block Grant Float Funds, in the form of a loan for a two (2) year period at three percent (3%), to finance the construction of 24 unit Phase 1 development of the proposed Lyric Village townhouse project located at NW 1st and 2nd Avenues, and NW 8th and 10th Streets. BACKGROUND: The Community Redevelopment Agency (CRA) for the Southeast Overtown/Park West Redevelopment District recommends the approval of a CD Float Loan to finance the construction of a 24 unit townhouse project contemplated on two CRA-owned vacant land located adjacent to the historic Lyric Theatre. On October 28, 1996, the City Commission in its capacity as the CRA Board approved a development proposal submitted by Lyric Village Housing Inc. ("Developer"), a joint venture of Related Housing Inc. and St. John CDC, to build a 96-unit townhouse development on the above referenced CRA-owned property. The CRA Board subsequently authorized the execution of the property disposition and development agreements with the Developer at its December 16, 1996 meeting. The Phase 1 project consists of 24 townhouses, eight 2Bd/2Bth and sixteen 3Bd/2Bth, sizes ranging from 1100 sf. to 1600 sf. with projected sales prices from $73.9K to $89.5K. The requested CD Float Loan with a low interest rate will assist the Developer to reduce the cost of construction and insure the delivery of units affordable for the prospective low to moderate income families. wOPw/cam 9 7 - 9 The Developer has acknowledged that the proposed CD Float Loan will be contingent on the Developer's ability to obtain an irrevocable letter of credit, from a financial institution acceptable to the City, equal to the loan amount and callable at the City's discretion. Therefore, the City will not assume any financial risk by issuing the proposed CD Float Loan to the Developer. At the same time, the City's action will provide a significant financial assistance to this worthy project. The CD Float Loan program is a widely used economic development tool available to recipient local governments in connection with the Community Development Block Grants program. The US HUD allows the recipient local governments to loan their unspent CDBG allocations for qualified redevelopment projects on a temporary basis. The CD Float Loan program allows the City to: 1) activate "dormant" financial resources available for qualified redevelopment projects, 2) lend money on a temporary basis at no risk, and 3) provide substantial financial assistance for a worthy project located in a community development area. Therefore, it is respectfully requested that the attached Resolution be approved to authorize the City Manager to negotiate and execute the requested CD Float Loan for the Lyric Village Phase 1 project. Enclosures: Letter from the Related Group Proposed Resolution 2 sr,orwic A 97 - 9 06/03/1997 11:53 June 3, 1997 305-860:.8241 DIVERSIFIED/MCDANIEL THE RELATED GROUP 2828 Coral Way, PH1 Miami, Florida 33145 Tel (305) 860.8778 Fax (305) 860-8241 Cell (305) 510-3030 Mr. Herbert J. Bailey Executive Director Community Redevelopment Agency City of Miami 300 Biscayne Boulevard Way Miami, Florida 33131 Re: Lyric Village Residential Development Dear Mr. Bailey, PAGE 02 Recall that on December 16`" ,1996 the Community Redevelopment Agency approved the proposal by St. John CDC and Lyric Village Housing Inc. (a corporation wholly owned by the Related Group of Florida) to construct and sell 96 townhomes and condominiums on portions of Block 25N, P.W. White Subdivision and North Miami Block 36N, City of Miami. Phase One of the Townhomes will consist of twelve units -- being four 2 bdr/2ba and eight 3 bdr/2ba units ranging in size from 1200 to 1600 sq. ft. (including an attached one car garage). Phase One of the Condominiums will consist of twelve units — being four 2bdr/2ba and eight 3bdr/2ba units ranging in size from 1100 to 1300 sq. ft. - without garages. Projected sales prices range from $73,900 to $89, 500. This letter is a request that the City of Miami provide construction funding in an aggregate amount of $2,000,000 from It's Community Development Block Grant Float Program to construct the initial twelve units of each of the Townhomes and the Condominiums. With this loan firmly committed, marketing, sales and initial construction can begin. Concurrently, FNMA and local lenders are expected to commit first mortgage funds for qualified homebuyers. Similarly, below market rate second mortgages will be comrriltted by various State, County and City housing agencies. The CD Float loan, with It's below market interest rate, will reduce the homebuyer's ultimate cost of housing and insure timely delivery of homes to qualified low -Income families. As an example; a family of three, earning about $22,500 per year, would be able to ,own a $73,900 2bdr/2ba condominium for a total monthly payment of $597 (including mortgage payments, real estate taxes and association fees). It is understood that the City of Miami will require an irrevocable letter of credit to Insure the repayment of the CD Float Loan. Lyric Village Housing Inc., with credit accommodation from the Related Group, intends to provide such a letter If this request is granted. Lyric Village Housing Inc. Ja s n cDanlel, V.P. cc: Benjamin — St. John CDC LYRIC CRA-CO FLOAT WOW SEOPW/iCRA 9 7 - 9