HomeMy WebLinkAboutSEOPW-CRA-M-03-0051�TO:
FROM:
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® CITY OF MIAMI, FLORIDA • ; ITEM 7
INTER -OFFICE MEMORANDUM
Honorable Arthur E. Teele, Jr., Chairman DATE: MAY " 9 2003 FILE:
& Members of the CRA Board
SUBJECT:
REFERENCES:
Fran . Rollason
Executive Director ENCLOSURES:
Community Redevelopment Agency
RECOMMENDATION:
Amending Existing Arena Contract
To include Funding for Elevators
5/19/03 CRA Board Meeting
It is respectfully recommended that the Board of Directors of the Southeast
Overtown/Park West Community Redevelopment Agency approve the attached
Resolution authorizing the Executive Director to enter into an amendment to
the current grant agreement between the Southeast Overtown/Park West Community
Redevelopment Agency and the New Arena Square Corporation to
provide reimbursement funding for the already installed elevators at the Arena Square
Apartments complex, to include the cost of necessary building modifications, for the
purpose of meeting ADA requirements in an amount not to exceed $344,425.00, subject
to satisfactory review and audit of the records of the Grantee (New Arena Square
Corporation) as provided in Article II, Section 2.4 of current grant agreement.
JUSTIFICATION:
As directed by the 'CRA Board of Directors at the April 28, 2003 Board Meeting, this
item is being presented for Board consideration. Attached, you will find
Mr. Salomon Yuken's April 23, 2002 detail of construction costs which have been
reviewed and accepted by the 'CRA's Engineering Consultant T.Y. Lin International/H.J.
Ross in relation to the elevator installations. Also, in researching previous actions of the
Board, the following Resolutions were identified pertinent to this issue:
1. SEOPW Resolution No. R-00-98 passed by the Board on September 25, 2000
(copy attached): This resolution authorized the owner of Arena Square
Apartments (ASA), jointly with the CRA to develop a plan for a $900,000.00
grant to ASA based on a 5 to 1 leverage ratio to pay for improvements to the
ASA. subject to the implementation of affordable housing deed restrictions with
respect to ASA.
2. SEOPW Resolution No. R-00-122 passed by the Board on November 20, 2000
(copy attached): This resolution approved a grant in the amount of $900,000 to
Arena Square Apartments (ASA) for facade and other improvements subject to a
loan application being approved by the Fannie Mae Corporation and pursuant to
the terms of the Grant Agreement between the SEOPW CRA and ASA.
SEOPW/CRA
03- 51
Honorable Arthur E. Tee*, Chairman
and Members of the CRA Board (Cont'd)
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3. SEOPW Resolution No. R-00-136 passed by the Board on December 18, 2000
(Copy attached): This resolution provided a grant of $1.17 Million to the New
Arena Square Apartments (ASA)... subject to the loan approval from Fannie Mae.
4. SEOPW Resolution No. R-02-39 passed by the Board on February 25, 2002
(Copy attached): This resolution authorized the current Grant Agreement
between SEOPW CRA and New Arena Square Corporation .... in an amount not
to exceed $420,000 .... for facade improvements to ASA from SEOPW TIF and
established a reserve in the amount of $600,000 in principle, subject to- a loan
being approved by Fannie Mae Corporation, to be used for direct grants to
commercial tenants of the ASA for improvements, build out costs and costs
associated with moving in; and repealing all resolutions inconsistent with this
action.
The Fannie Mae loan was never entered into by the CRA. The elevators have, in fact,
been installed by Mr. Yuken, and, of necessity for construction sequencing, had to be
installed in an early -on phase of construction to accommodate structural elements which
had to be modified. It must be noted that since the ASA project encompassed
construction which exceeded 50% of the value of the structure, Mr. Yuken was required
to meet current ADA requirements - one of which is to provide equal access to tenants
throughout the facility. Although not the only remedy to obtain equal access, Mr. Yuken
chose the most practical, which were the elevators. Other options would have most likely
cut down on residential space, retail space, courtyard space, or some combination of all
three.
As a result of options presented to. Mr. Yuken and the timing necessary to keep this
project moving forward, I recommend that the Board approve this amendment to the
current agreement and fund the full amount presented to offset the expense of the elevator
installations.
FKR/sg
FUNDING SOURCE: SEOPW TIF
ACCOUNT NUMBER: 689001.550108.6.860
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DEFER�",��i,-0�,
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03- 51
AGENDA am
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CITY OF MIAMI
COMMUNITY REDEVELOPMENT AGENCY
FINANCIAL INFORMATION FORM
SEOPW CRA r OMNI CRA (if applicable)
CRA Board Meeting Date: May t9, 2003
CRA Section:
Brief description of CRA Agenda Item:
Amending Existing New Arena Square Contract to include Funding. for Elevators, in an
amount not to exceed $344 425.00.
Project Number if a licable :
❑ YES, there are sufficient funds in Line Item:
Index Code: Minor:
Amount:
❑ NO (Complete the following source of funds information):
Amount budgeted in the line item: $
Balance in the line item: $
Amount needed in the line item: $
Sufficient funds will be transferred from the following line items:
ACTION
I ACCOUNT NUMBER
TOTAL
Project No./Index/Minor Object
From
$
To
$
From
$
To
$
Comments:
Approved by: Date: 6 D 3
CRA Executive Director/Designee
by:
CRA Accounting Section
,ar.e a.+.v�.ir s4*uow�
APPROVALS
CRA
Date: 17 ,
Date:
E Sim E FZ F
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05/06/03
RESOLUTION SEOPW/CRA R-
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE SOUTHEAST OVERTOWN/PARK WEST
(SEOPW) COMMUNITY REDEVELOPMENT AGENCY
(CRA), AUTHORIZING THE EXECUTIVE
DIRECTOR TO EXECUTE AMENDMENT NO. 1,.IN
A FORM ACCEPTABLE TO GENERAL COUNSEL,
TO THE CURRENT GRANT AGREEMENT (THE
"AGREEMENT") BETWEEN THE SEOPW CRA AND
THE NEW ARENA SQUARE CORPORATION (THE
"GRANTEE") TO PROVIDE REIMBURSEMENT
FUNDING, IN THE AMOUNT OF $344,425.00,
SUBJECT TO SATISFACTORY REVIEW AND
AUDIT OF THE RECORDS OF THE GRANTEE,
FOR THE ALREADY INSTALLED ELEVATORS AT
THE NEW ARENA SQUARE APARTMENTS
COMPLEX, TO INCLUDE THE COST OF
NECESSARY BUILDING MODIFICATIONS, FOR
THE PURPOSE OF MEETING ADA
REQUIREMENTS; FUNDS TO BE ALLOCATED
THEREFOR FROM SEOPW TIF ACCOUNT CODE
NO. 689001.550108.6.860.
WHEREAS, the SEOPW CRA is charged with the duty of
removing slum and blight within the Southeast Overtown/Park
West Community Redevelopment Area; and
WHEREAS, the New Arena Square Corporation has
furthered the SEOPW CRA's mission of removing slum and
blight by developing the New Arena Square Apartments
complex ("ASA"); and
WHEREAS, on February 25, 2002, the SEOPW CRA passed
0 Resolution No. R-02-39 authorizing the current agreement in
Page 1 of 4E
SE®PW/CrhRA
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an amount not to exceed $420,000.00 for fagade improvements
to ASA from SEOPW TIF and established a reserve in the
amount of $600,000.00 in principle, subject to a loan being
approved by Fannie Mae Corporation, to be used for direct
grants to commercial tenants of the ASA for improvements,
build -out costs, and costs associated with moving in. This
Resolution also repealed all resolutions inconsistent with
this action; and
WHEREAS, the ASA project encompassed construction
which exceeded 50o of the value of the structure therefore
requiring the grantee to meet current ADA requirements, one
of which is to provide equal access to tenants throughout
the facility; and
WHEREAS, the grantee chose to install elevators as the
most practical remedy to meet the equal access ADA
requirement; and
WHEREAS, because of construction sequencing, the
grantee found it necessary to install these elevators
early -on in the construction phase to accommodate
structural elements which had to be modified; and
WHEREAS, the loan from Fannie Mae Corporation was
never entered into by the SEOPW CRA; and
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SE®PW/CRA
Page 2 of 4
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WHEREAS, in order to keep the ASA project moving
forward in a timely fashion, it is now necessary to enter
into Amendment No. 1 to the agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE SEOPW COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings
contained in the Preamble to this Resolution are hereby
adopted by reference and incorporated herein as if fully
set forth in this Section.
Section 2. The Board of Directors of the
Southeast Overtown/Park West Community Redevelopment
Agency, hereby, authorizes the Executive Director to
execute Amendment No. 1, in a form acceptable to General
Counsel, to the current grant agreement between the SEOPW
CRA and the New Arena Square Corporation to provide
reimbursement funding, in the amount of $344,425.00,
subject to satisfactory review and audit of the records of
the Grantee as provided in Article II, Section 2.4 of the
agreement, for the already installed elevators at the New
Arena Square Apartments complex, to include the cost of
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SEOPvW / C
Page 3 of 4 `�"` ® 3 51
necessary building modifications, for the purpose of
meeting ADA requirements; funds to be allocated therefor
from SEOPW TIF, Account Code No. 689001.550108.6_.860.
Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this day of , 2003.
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ATTEST:
PRISCILLA A. THOMPSON
CLERK OF THE BOARD
APPROVED AS TO
:SG
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O VILARELLO
COUNSEL
L]1\111 V 1\ L . 11',LLL, V 1\ . , t.11A 11\1"1CLLV
AND CORRECTNESS:
Page 4 of 4
03- 51
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City of Miami Community Redevelopment Agency
Project Budget Status and Funding Summary
As of: 5/19/03
Project: NEW ARENA SQUARE APARTMENTS
Status: On -going Project
Original
Amended
Funding
Sources
Amount Legislation
Expended 7toRemaining
Date DateBalance
Budget
Date Budget Date
Estimate
$425,000
12127102 N/A N/A
SEOPW TIF
$425,000 SEOPW R-02-39
12/27/02 $135,665.28
$289,334.72
$344,425 5/19/03
SEOPW TIF
$344,425 Pending Board
5/19/03 $0
NIA
Action
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tale PUT��>el��
2921 N.W. 6th Ave.
Miami, FL 33127
Tel. (305) 571-8353
fax (305) 571-8357
23-Apr-02
New Arena Square Apts.
Re: 268 N.W. 11 th St.
275 N.W.- 10th St.
Miami, FL 33136
Construction Cost
Re: Change order for: Courtyard, elevators and sidewalk.
Dear Salomon:
As per your request herewith please find a cost breakdown of what we have paid out for the
. above mention change order.
Demolition of all the electrical rooms and storage areas located on the back wails of buildings
268 & 275 as well as the required demoliton in each building to accommodate the new
hallways that serve the elevators in each building.
In order to build the elevators and new hallways, we had to erect new CBS walls where the old
partitions. The existing wood frame floor was also removed and a new reinforced concrete floor
slab was constructed.
The elevator shafts were constructed as per building plans and permits, our
cost for this item as well as the previously mention is as follows:
Demolition & clean up during & after construction:
Foundations for all the new construction:
a. Excavation:
b. Form: 3 floors plus the roof on both sides (268 & 275)
c. Pour: 3 floors plus the roof on both sides (268 & 275)
d. Form removal: 11
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17,500.00
6,000.00
16,000.00
14,000.00
2,600.00
SEOPW/CRA
03- 51
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Elevators:
New reinforced CBS walls and hallways: (three floors each building 268/275)
Beams & Columns: Elevators tower structure:
a. Form, place steel, pour, form removal:
Roofing system modified membrane:
Elevators - hydraulic 2,500 lb load limit automatic 2 car group, intercom, glass cab,
texture rubber floor, emergency power switching, position indicators:
Elevator tower (2) glass and metal structure:
Power supply to elevators & machine rooms:
Construction of machine rooms (2) 3,500 each 2 =
Metal doors and frames:
Plumbing drains elevator towers and machine rooms:
8,500.00
20,000.00
4,500.00
135,000.00
42,000.00
6,000.00
7,000.00
1,600.00
4,000.00
First floor concrete slabs:
Hallways form & pour includes stamped concrete and sidewalk from IOth to 11th st.
along 3rd ave: 11,000.00
Exterior paint:
Sub Total:
P&015%:
Total:
Thank you for giving us the opportunity to bid your property
Braulio Gutierrez, Pres.
3,800.00
299,500.00,
44,925.00
344,425.00
YL
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SEOPW/-CRA
03- 51
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RESOLUTION NO. SEOPW/CRA R-00-98
A RESOLUTION OF INTENT OF THE BOARD OF
DIRECTORS OF THE COMMUNITY REDEVELOPMENT
AGENCY ("CRA"). TO AUTHORIZE THE OWNER OF
THE ARENA SQUARE APARTMENTS, JOINTLY WITH
THE CRA, TO DEVELOP A PLAN FOR A $900,000.00
GRANT TO THE ARENA SQUARE APARTMENTS
BASED ON A FIVE TO ONE LEVERAGE RATIO TO PAY
FOR IMPROVEMENTS TO THE ARENA SQUARE
APARTMENTS IN A MANNER CONSISTENT INTITH THE
THIRD AVENUE BUSINESS CORRIDOR AND THE
OVERTOWN CHARRETTE SUBJECT TO THE
IMPLEMENTATION OF AFFORDABLE HOUSING
DEED RESTRICTIONS WITH RESPECT TO THE
ARENA SQUARE APARTMENTS.
WHEREAS, the City of Miami approved and adopted the Southeast
Overtown/Park West Community Redevelopment Plan pursuant to
Resolution Nos. 82-755 and 85-1247 (the "Redevelopment Plan"); and
WHEREAS, the CRA is responsible for carrying out community
redevelopment activities and projects in the Southeast Overtown/Park West
Redevelopment Area (the "Redevelopment Area") established pursuant to the
Redevelopment Plan; and
WHEREAS, the CRA desires that the owner of the Arena Square
Apartments, jointly with the CRA, develop a plan for a $900,000.00 grant to
the Arena Square Apartments based on a five to one leverage ratio to pay for
improvements to the Arena Square Apartments in a manner consistent with
the Third Avenue Business Corridor and the Overtown Charrette subject to
the implementation of affordable housing deedrestrictions with respect to
the Arena Square Apartments. .
NOW, THEREFORE, BE IT RESOLVED BY- THE BOARD OF
DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to
this Resolution are incorporated herein as if fully set forth in this Section.
L. iS{ai1 I"�jsl //�p�{L.�vk'H.l : •, 11 �..�
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Section 2. The Board of Directors of CRA hereby authorizes the
owner of the Arena Square Apartments, jointly with the CRA, to develop a
plan for a $900,000.00 grant to the Arena Square Apartments based on a five
to one leverage ratio to pay for, improvements to the Arena Square .
Apartments in a manner consistent with the Third Avenue, Business Corridor
and the Overtown Charrette subject to the implementation of affordable
housing deed restrictions with respect to the Arena Square Apartments.
Section 3. The resolution shall be effective upon its adoption.
PASSED AND ADOPTED on this 251h day of September, 2000.
--'Walter'4--F6eman, City Clerk
APPROVED AS TO FORM
AND CORRECTNESS:
Holland & Knight LLP
CRA Legal Counsel
MIAI #972505 vl
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Arthur E. Teele, Jr., Chairman
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® ITEM 19
SEOPW/CRA
RESOLUTION NO. SEOPW/CRA A' OD—1 Z�.
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CONDALNITY REDEVELOPMENT AGENCY ("CRA")
APPROVING A GRANT OF $900,000 TO ARENA SQUARE
APARTMENTS LOCATED WITHIN THE HISTORIC 3RD
AVENUE BUSINESS CORRIDOR FOR FACADE AND OTHER
IMPROVEMENTS SUBJECT TO A LOAN APPLICATION BEING
APPROVED BY THE FANNIE MAE CORPORATION AND
PURSUANT TO THE TERMS OF THE GRANT AGREEMENT
ATTACHED HERETO AS EXHIBIT "A".
WHEREAS, the City of Miami approved and adopted the Southeast
Overtown/Park West Community Redevelopment Plan pursuant to
Resolution Nos. 82-755 and 85-1247 (the "Redevelopment Plan"); and
WHEREAS, the CRA is responsible for carrying out community
redevelopment activities and projects in the Southeast Overtown/Park West
Redevelopment Area (the "Redevelopment Area") established pursuant to the
Redevelopment Plan; and
WHEREAS, the CRA desires to approve a grant in the amount of
$900,000 to Arena Square Apartments for fagade and other improvements
subject to a loan application being approved by Fannie Mae Corporation and
pursuant to the terms of the grant agreement in the form of Exhibit "A"
attached hereto and made a part hereof.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the. Preamble to
this Resolution are incorporated herein as if fully set forth in this Section.
Section 2. The Board of Directors of CRA hereby approves a .
$900,000 grant to Arena Square Apartments for facade and other
improvements subject to a loan application being approved by Fannie Mae
Corporation and pursuant to the terms of the grant agreement in the form of
Exhibit "A' attached hereto and made a part hereof.
Section 3. The Board of Directors of CRA hereby authorizes the
Executive Director to enter into a grant agreement between the CRA and
Arena, Square Apartments in the form of Exhibit of Exhibit "A' attached
hereto and made a part hereof.
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aT 3 03 51
ITEM 19
SEOPW/CRA
Section 4. The resolution shall be effective upon its adoption.
PASSED AND ADOPTED on this 20+h day of November, 2000.
Arthur E. Teele, Jr., Chairman
ATTEST:
Walter J. Foeman, City Clerk
APPROVED AS TO FORM
AND CORRECTNESS:
City of Miami
Alejandro Vilarello, Legal Counsel
SEOPW / CRA
03- 51
ITEM 11A
SEOPW/CRA
RESOLUTION NO. SEOPW/CRA A - OP -13 6
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
COMMUNITY REDEVELOPMENT AGENCY (-CRA-) PROVIDING A
GRANT OF $1.17MM TO THE NEW ARENA SQUARE
APARTMENTS AND FURTHER AUTHORIZING THE EXECUTIVE
DIRECTOR TO ' ENTER INTO AN AGREEMENT WITH SALOMEN
YUKEN, OWNER OF NEW ARENA SQUARE APARTMENTS IN A.
FORM ACCEPTABLE TO THE CITY ATTORNEY, SUBJECT TO THE
LOAN APPROVAL FROM FANNIE MAE.
WHEREAS, the City of Miami approved and adopted the Southeast
Overtown/Park West Community Redevelopment Plan pursuant to
Resolution Nos. 82-755 and 85-1247 (the "Redevelopment Plan"); and
WHEREAS, the CRA is responsible for carrying out community
redevelopment activities and projects in the Southeast Overtown/Park
West Redevelopment Area (the "Redevelopment Area') established
pursuant to the Redevelopment Plan; and
WHEREAS, the CRA desires to provide a grant of $1.17 MM to the
New Arena Square Apartments and further authorizing the Executive
Director to enter into an agreement with Salomon Yuken, owner of New
Arena Square Apartments in a form acceptable to the City Attorney,
subject to the loan approval from Fannie Mae.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD -OF
DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to
this Resolution are incorporated herein as if fully set forth in this
Section.
Section 2. The Board of Directors of CRA, hereby authorizes the
CRA to provide a grant of $1.17 MM to the New Arena Square
Apartments and further authorizing the Executive Director to enter into
an agreement with Salomon Yuken, owner of New Arena Square
Apartments in a form acceptable to the City Attorney, subject to the loan
approval from Fannie Mae.
Section 3. The resolution -shall -he ef%cjye upon its ado tivn 7 :
- - - _ SEOPW/CRA
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PASSED AND ADOPTED on
ATTEST:
Walter �JFoem�an, City Clerk
APPROVED AS To FORM
AND CORRECTNESS:
Alejandro Vilareflo
City Attorney
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SEOPW/CRA
Is 18th day of December, 2000.
E. Teele, Jr., Ch-airman'
SEOPW/CRA
03- 51
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EXHIBIT
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SEOPW/CRA
03- 51
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LAMBERT ADVISORY, L.C.
FACSIMILE TRANSMITTAL SHEET
TO: FROM:
Dip& Parekh Eric Ziff
Email ,kmb=dyiA =g.com
Direct Dial #. 305-860-37f6
COMPANY: DA'CF:
Miaz l CRA 12/8/00
PAX NUMBER: TOTAL NO. Or PAGES INCLUDING COVER:
305-3724646 6
PHONY NUMBER: .SF,NOER'S REI'ERl:NC1i NUMBER:
RE% YOUR REFERENCE NUMBIiR:
URGENT ❑ CpR REVIEW ❑ PLI;ASF COMMFNT ❑ PLEASE REPLY ❑ PLEASE RECYCLn
NOTT-WCOMMENTS:
2601 SOUTH BAYS110RE DRIVE:. SUITE 300 D
MIAMI, F-1. 33)33
PHONE: (305) SfO-3715 14AX: (30S) 940-3777
WWWlLAMBh:R'rAl3VIS0RYX0M
fir,.:.
DE1
SEOPW / CRA
03- 51
- - - _ - - . . .
® 2601 South Bayshure Drive, Suite 300 D
Mimi, fbrida 33133
Lambert "S"
Advisory ph,305 860 3713
• 1 he 303 "0 3777
Mr. Dipek Parekh
City of Miami Community Redevelopment Agency
300 Biscayne Boulevard, Suite 430
Miami, FL 33131
December 7, 2000
Dear Mr. Parekh:
We have completed a review of the Arena Square Apartment Increment Tax analysis.
(refer to the attached Proforma Analysis and Charts). Our primary objective was to
identify the time frame for which Increment Tax proceeds from the Arena Square
Apartment would equal the grant provided to the project plus any interest on the
underlying Fannie Mae loan. It should be noted that this analysis is exclusively related to
increment tax generated from the project and does not take into account the value of the
project from an economic development perspective, or its ability to "prove" the
residential market in the Overtown/Park West District.
The following is a summary of primary assumptions utilized in this analysis:
— The CRA will contribute as a grant $1.17 million to the redevelopment of Arem
Square. The funds will be provided through Fannie Mae loan, which the CRA will
repay based upon a 7-year amortization and a coupon of 10.0 percwt (0.5% above
Prime). The loan will not be collateralized by the project, and will have to be paid
out of CRA funds.
— Upon completion of the improvements, the development's Total Project Value is
estimated to be $10.51 million, based upon acquisition and projected development
costs provided by Mr. Salomon Yuken. For this analysis, we assume a project value
breakdown of $8A million for improvements and $2.1 million for land and,
furthermore, the value of the property is expected to increase 2.5 percent on nuilly.
The property's assessed value for Ad Valorem (and Personal Property) Taxes
assumes 80 percent of estimated Total Project Value, which is consistent with the
County's assessment methodology.
The Increment Tax paid to the CRA assumes amiilage of 14.760, which includes
both County and CRA increments portions.
Proceeds from the Increment Tax utilized to repay the CRA loan was prepared, on a
current value basis, as well as present value basis.
• DL F R�: F'�3 :•P.r,�� yr'?, �.� '_-�
03- 5
SEOMc
Arena Square Apartments
Increment Tax Schedule
E
Present Value Basis
14)
$3.5
v
$3.0
C
C
$2.5
A9
2
$2 .0
Total Cost of Loan to C 1. Million
>
._
1.0
$ 5 -
Repayment pea
$°
E
t�
Year
3ap Pi '�
R6R5}
i
1'1T
Years
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Arena Square Apartments
Increment Tax Schedule
E$3'5
-
Current Dollars
$3.0
_
$2.5-
_
a;
0
$2.0 —
Total cost of Loan to cRA: $1.68 Million,
$1.0
ago=
Repayment Period
%*moo
$0
*l2
E
Years
Year
Leo
M
Mr. Depek Parek#t
City of Miami Community Redevelopment Agency
Based upon these assumptions, the followingcan be concluded:
— The CRA's loan repayment obligation is $240,000 annually, or $1.68 million over a
seven- year amortization period.
— On a current dollar basis, increment tax proceeds from The Arena Square Apartments
will reach $1.68 million after 12 years
— On a present value basis (using a discount rate of 5 percent), proceeds from the Arena
Square increment tax will reach $1.68 million after 17 years.
Please call with any questions or comments regarding our analysis - (305) 860-3716.
Sincerely,
% r A
Eric Jam/
a
10 lu
3 PW/CRA
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RESOLUTION NO. SEOPW/02-39
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
COMMUNITY REDEVELOPMENT AGENCY ("CRA"): (1)
AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A
GRANT AGREEMENT, WITHIN 30 DAYS, WITH NEW ARENA
SQUARE CORPORATION AND/OR NEW ARENA SQUARE NORTH
AND- SOUTH, LTD., IN AN AMOUNT NOT TO EXCEED $420,000
AND SUBSTANTIALLY IN THE FORM ATTACHED, FOR FACADE
IMPROVEMENTS TO THE ARENA SQUARE APARTMENTS
PURSUANT TO THE PLANS AND RENDERINGS APPROVED BY
THE CITY OF MAIMI DEPARTMENTS OF PLANNING AND
ZONING AND BUILDING; (2) ALLOCATING SOUTHEAST
OVERTOWN/PARK WEST TAX INCREMENT FUNDS (TIF) FOR
SUCH PURPOSE; (3) ESTABLISHING A RESERVE IN THE
AMOUNT OF $6001000 IN PRINCIPLE, SUBJECT TO A LOAN
BEING APPROVED BY FANNIE MAE CORPORATION, TO BE
USED FOR DIRECT GRANTS TO COMMERCIAL TENANTS OF
THE ARENA SQUARE APARTMENTS FOR IMPROVEMENTS,
BUILD OUT COSTS AND COSTS ASSOCIATED WITH MOVING IN;
AND (4) REPEALING ALL RESOLUTIONS INCONSISTENT WITH
THIS ACTION.
WHEREAS, on September 25, 2000, the CRA adopted SEOPW/CRA Resolution
00-98, which authorized the owner of Arena Square Apartments, jointly with the CRA, to
develop a plan for a $900,000 grant to the Arena Square Apartments, based on a five to
one leverage ratio, to pay for improvements to the Arena Square Apartments in a manner
consistent with the Third Avenue Business Corridor and the Overtown Charette, and
subject to the implementation of affordable housing deed restrictions with respect to the
Arena Square Apartments; and
WHEREAS, on November 20, 2000, the CRA adopted SEOPW/CRA Resolution
00-122, which approved a grant in the amount of $900,000 to Arena Square Apartments
for fagade and other improvements to that facility, subject to a loan being approved by
the Fannie Mae Corporation and the execution of a grant agreement by the parties; and
WHEREAS, on December 18, 2000, the CRA adopted SEOPW/CRA Resolution
00-136, which provided a grant in the amount of $1,170,000 to the Arena Square
Apartments and authorized the CRA Executive Director to enter into an agreement with
Salomon Yuken, owner of Arena Square Apartments (the "Developer"), in a form
acceptable to the CRA General Counsel,;' and also subject to the approval of a loan for
such purpose from Fannie Mae; and
SEOPW / C$A
03- �l
WHEREAS, on February 26, 2001, the CRA adopted SEOPW/CRA Resolution
01-20, which authorized temporary relocation financial support in an amount not to
exceed $2,500 for each of the business tenants of the Arena Square Apartments; and
WHEREAS, on June 25, 2001, the CRA adopted SEOPW/CRA Resolution 01-
79, which ,authorized the Executive Director to Close the Fannie Mae loan in accordance
with the term sheet provided by Fannie Mae, under terms and conditions acceptable to
the CRA General Counsel; and
WHEREAS, on December 11, 2001, the CRA adopted SEOPW/CRA Resolution
01-149, which authorized an increase in the amount of the Fannie Mae Loan from
$1,200,000 to $1,575,000, established the Escrow Accounts required Fannie Mae in
connection with the loan and instructed the CRA's fiduciary, the City of Miami Finance
Department, to wire the required Closing costs to Fannie Mae; and
WHEREAS, the Developer has advised the CRA that the $1,000,000 tax credit
for the project cannot be used to build out the commercial/retail space on the first floor of
the Arena Square Apartments; and
WHEREAS, it was the desire of the CRA to assist Arena Square Apartments by
providing for facade improvements as well as hard costs associated with the build out of
the commercial space on the first floor of Arena Square Apartments; and
WHEREAS, the CRA was willing to become a partner with the Developer, on a
50-50 basis; and
WHEREAS, an agreement in principle existed between the CRA, the Developer
and Fannie Mae for the selection of an independent commercial agent for the commercial
space; and.
WHEREAS, the CRA and the Developer have not been able to agree on the
terms and conditions of the build out of the commercial space and the management of the
property,b'y an independent commercial agent; and
WHEREAS, based on proposals by the Developer, the Developer has
acknowledged that he would spend all grant monies received from the CRA for the
benefit of the owner of the Arena Square Apartments, not the commercial tenants; and
WHEREAS, the CRA is committed to providing jobs in the Southeast
Overtown/Park West community; and
WHEREAS, the CRA desires to authorize and direct the Execute Director to
enter into a grant agreement, within 30 days, with New Arena Square Corporation and/or
New Arena Square North and South, Ltd., in an amount not to exceed $420,000 and in
substantially the form attached, for facade improvements to the Arena Square Apartments
pursuant to the plans and renderings approved by the City of Miami Departments of
Planning and Zoning and Building; and�Lrr
.. >,.-..._m....w SEOPWiCR-A--.; .
03- 51
WHEREAS, the CRA desires to establish a reserve in the amount of $600,000 in
principle, subject to a loan being approved by Fannie Mae Corporation, to be used for
direct grants to commercial tenants of the Arena Square Apartments for improvements,
build out costs and costs associated with moving in;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this
Resolution are incorporated herein as if fully set forth in this Section.
Section 2. The Executive Director is hereby authorized and directed to enter
into a grant agreement, within thirty days, with New Arena Square Corporation and/or
New Arena Square North and South, Ltd., in an amount not to,exceed $420,000 and in
substantially the form attached, for fagade improvements to the Arena Square Apartments
pursuant to the plans and renderings approved by the City of Miami Departments of
Planning and Zoning and Building.
Section 3. There is hereby established a reserve in the amount of $600,000 in
principle, subject to a loan being approved by Fannie Mae Corporation, to be used for
direct grants to commercial tenants of the Arena Square Apartments for improvements,
build out costs and costs associated with moving in.
Section 4. All prior Resolutions or parts of Resolutions insofar as they are
inconsistent or in conflict with the provisions of this Resolution are repealed.
Section 5. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED on this 25'' day of February 2002.
/
ATTEST:
Sylvia Scheider, Acting Clerk of the Board
TO FORM
Al andro\�
General Counsel
Arthur E: Teele, Jr., Chairman
SEOPW 1 CitA
03.-. 51
DISCUSSION
11
DO EEL F E R R P 0
SEOPW/CRA
03- 51
CITY OF MIAMI, FLORIDA ITEM 9
INTER -OFFICE MEMORANDUM
Honorable Arthur E. Teele, Jr., Chairman �MAY 2ntiO3 O: & Members of the CRA Board DATE: FILE:
Request by New Arena Square Corp. for
c�Fr SUBJECT Funding for Day Care & Community Rooms
FROM: Executive ank K. Rollason Director REFERENCES: 5/19/03 CRA Board Meeting
Community Redevelopment Agency ENCLOSURES:
This is a discussion item generated by previous Board general discussions concerning the
Arena Square Apartment (ASA) Project and specifically is brought back to the Board, at
this time, as a result of direction by the Board at its April 28, 2003 Board meeting
wherein it was requested of the Executive Director to bring back to the next Board
meeting all items related to Mr. Salomon Yuken's comments at the April 28th Board
meeting.
It is Mr. Yuken's position that if these two additional structures, the Day Care and
Community Room, are constructed within the courtyards of the ASA Project, the ground
floor retail space presently contemplated for such use will be freed -up for the intended
use of retail sales. Attached, you will find a March 5, 2003 letter outlining Mr. Yuken's
position on these rooms (#'s 2, 3, & 4) along with an April 23, 2002 budget break -down
to provide both of these facilities in an amount of $252,172.00.
Mr. Yuken is requesting that the CRA fund the total amount of both of these structures in
an amount not to exceed $252,172.00, which would be funded by SEOPW TIF if
available and so appropriated.
FKR/sg
'�
SEOPW/CR
®3s 51
•
New Arena Square North & South Ltd.
1023 N.W. 3 Avenue
Miami, Florida 33136
Tel. (305) 372-1383 .
Fax. (305) 381-6801
March 5, 2003
Mr, Frank Rolarson, Director
Community Redevelopment Agency
Miami, Florida
Dear Mr. Rolarson:
Thank you for your time to visit the building complex 268 N.W. 11 Street and 275 N.W.
10 ,Street, and have the opportunity of explaining the Project and the benefits to the
community as follows:
l.- Empty Lot 240 N.W. 11 Street. We are very interested in acquiring this lot for parking
by our tenants on % of the lot, and the balance %4 of the lot in the back with direct
communications with the building complex, we will dedicate it to a toddler/children
playground.
2.- Store Fronts. The commercial area of the 268 N.W. 11 Street building has been
committed to a Day Care owned and managed by Ayuda Inc., a non profit corporation.
with an impeccable record. The key issue is that they will be employing (with training
when necessary) residents of our complex and/or the Overtown area.
3.- Store Fronts. The commercial area of the 275 N.W. 11 Street building (approximately
1500 Sq. Ft.) will be the Community Center for the residents of the complex. The other
three stores available are committed to a Security Co., Bail Bonds Co., and a Barber Shop
(prior tenant), all of them African American ownership with established recognized
businesses.
4.- The alternative to use all the store fronts for the Day Care and the Community Center
is to build the proposed and planned one story structure in each of the buildings
courtyard, to accommodate them; therefore releasing the stores for leasing to established
African American businesses, that wantlto move or branch out to this location, and/or
national retailers, for their stores to be used as incubators, to hire and train local residents
to become part of their labor force. if the CRA is in agreement with this plan, we need the
funding to cover the cost of construction for the two new structures, Tgr
serve the needs of the community.
SEOPW/CRA
®3- 51
Un�G4S7.I LG 'Wnt: I i -ic/7h i �Inn7 rt s rnuIi
Idi'iLJ
I*
5.- Last is the landscaping of 3`6 Avenue between IOh and I Vh Street which we would
like to see it being done right away with the construction of islands on each side of the
four street corners and four in between comers,to plant royal palms and Picas on the
bottorn. When this is completed, we feel we 'would have accomplished
shed the beginning of
the renaissance of the 3 Id Avenue Business Corridor.
Hope that thel above is clear enough for the CRA to make the right decision on the above
subjects.
Sincerely,
New Arena Square rth & South Ltd.
u
a) mon Yk
ELI
SEOPW/CRA
03- 51
I crin7 (11 CI (nun
IAI i-i U J
•
•
2921 N.W. 6th Ave.
Miami, FL 33127
Tel. (305) 571-8353
Fax (305) 571-8357
23-Apr-02
New Arena Square Apts.
Re: 268 N.W. 11 th St.
275 N.W. IOth St.
Miami, FL 33136
Re: Day Care and Community Room
Dear Salomon:
Herewith please find our itemized construction cost breakdown for the day care and Community
room as per the proposed architectural drawings:
Structural & Architectural:
New construction on the courtyard behind existing commercial'spaces, fronting 3rd ave
on buildings 268 & 275. The total s4uare footage to be addes is aprox 4,000 sq.ft. for both buildings:.
Mobilization:
Site Utilities:
Excavations:
Foundations:
Floor slabs:
C.B.S. Walls:
Tie beams &
columns:
Concrete poured
roof
Exterior plaster:
Interior partitions &
framing:
Drywall hanging finisr
& texture:
Glazing:
16 weeks @ 437.50
16 weeks @ 120.00
4,500 sq.ft. aq 3.00 psf
1801f @. 32.50
4,000 @ 8.00
3,600 sq.ft. @ 3
420 if @ 25.00
4,000 @ 8
400 yds @ 30
Allowance
7,000.00
1,950.00
6,000.00
5,850.00
32,000.00
10,800.00
10,500.00
32,000.00
12,000.00
8,000.00
19,000.00
1,200.00
. -...........
=art,
i----SE' GPV4T/'CRta x.,-- �
0 3 - `51
•
Exterior /store doors: 2 @ 1,950
Interior doors: 4 @ 350
Exterior paint: sealer & 2 coats
Plumbing: As per plans
Electrical: As per plans
Air conditioning: As per plans
Roofing:
Interior paint base & two coats:
Fire alarm:
Structual & ArchitecturaI - Sub Total:
Profit & Overhead 15%:
Total:
Thank you for giving us the opportunity to bid your property.
i
Brau 6 Gutierrez, Pres. %
a
3,900.00
1,400.00
6,000.00
14,000.00
21,000.00
12,000.00
4,800.00
2,910.00
7,000.00
219,280.00
32,892.00
$252,172.00 .
SE®PW/CRA
03 51
CITY OF MIAMI, FLORIDA ITEM 10
INTER -OFFICE MEMORANDUM
�T0: Honorable Arthur E. Teele, Jr., Chairman DATE: MAY - 9 2003 FILE:
& Members of the CRA Board SUBJECT
Lease of CRA Lot to New Arena
Square North & South Ltd.
FROM: REFERENCES:
Fran K. Rollason 5/19/03 CRA Board Meeting
Executive Director ENCLOSURES:
Community Redevelopment Agency
This is a discussion item generated by the personal appearance of Mr. Salomon Yuken at
the April 28, 2003, CRA Board of Directors meeting. At that meeting, the Board directed
that all items dealing with Mr. Yuken's New Arena Square Apartment Project be brought
back to the next meeting (May 19, 2003) for discussion and/or action.
This particular item deals with a written request from Mr. Yuken (letter to Rollason dated
March 5, 2003 - copy attached) wherein, he requests, under #1, the acquisition of the lot
located at 240 NW I Ith Street to provide parking and a toddler playground for use by
tenants of his apartment complex. Also, be advised that the conveyance of this lot from
the City of Miami to the CRA is also on the May 19th CRA Board Meeting Agenda and
is subject to approval by the City at a subsequent Commission meeting (not yet a
scheduled item). As such, said lot would not become available for applicant's use until
the time that the lot is fully conveyed to the CRA.
The CRA Staff recommends that this lot be conveyed in some form of a lease for Mr.
Yuken's stated purpose - either through a month -to -month lease or a long-term lease. If
any form of lease is considered, it is Staff s position that any improvements would be at
the expense of the applicant with no reimbursement or grant from the CRA. As you are
aware there are various arrangements through which this lot may become available for
his use. The purpose of this discussion is to allow Mr. Yuken to present his ideas and for
the Board to discuss options and give direction to the Staff in the disposition of his
request.
FKR/sg
FEryyN S
03- 51
1]
•
New Arena Square North & South Ltd.
1023 N.W. 3 Avenue
Miami, Florida 33136
Tel, (305) 3724383
Fax. (305) 381-6801
March 5, 2003
Mr. Frank Rolarson, Director
Community Redevelopment Agency
Miami, Florida
Dear Mr. Rolarson.
Thank you for your time to visit the building complex 268 N.W. l 1 Street and 275 N.W.
10 Street, and have the opportunity of explaining the Project and the benefits to the
community as follows;
l,- Empty Lot 240 N.W. 11 Street. We are very interested in acquiring this lot fur parking
by our tenants on'/o of the lot, and the balance '/< of the lot in the back with direct
cornmuni cations with the building complex, we will dedicate it to a toddler/children
playground.
2.- Store Fronts. 'The commercial area of the 268 N.W. l 1 Street building has been
committed to a Day Care owned and managed by Ayuda Inc., a non profit corporation
with an impeccable record. The key issue is that they will be employing (with training
when necessary) residents of our complex and/or the Overtown area.
3.- Store Fronts. The commercial area of the 275 N.W. I 1 Street building (approximately
1500 Sq. Ft.) will be the Community Center for the residents of the complex. The other
three stores available are committed to a Security Co,, Bail Bonds Co., and a Barber Shop
(prior tenant), all of them African American ownership with established recognized
businesses.
4.- The alternative to use all the store fronts for the Day Care and the Community Center
is to build the proposed and planned one story structure in each of the buildings
courtyard, to accommodate them; therefore releasing the stores for lela.sing to established
African American businesses, that want .to move or branch out to this. location, and/or
national retailers, for their stores to be used as incubators, to hire and train local residents
to become part of their labor force. If the CRA is in agreement with this plan, we need the
funding to cover the cost of construction for the two new structures, which will definitely
serve the needs of the community.
7 A Ong QQo7I I C 'nAl/nh- I I -1 Q/71,' 1 1 onn7 o f o (nu I
Id0UJ
•
0 rd th th
5.- Last is the landscaping of 3 Avenue between 10 and l 1 Street which we would
like to see it being done right away with the construction of islands on each side of the
four street corners and four in between comers to plant royal palms and ficas on the
bottom, When this is completed, we feel we would have accomplished the beginning of
the renaissance of the 3rd Avenue Business Corridor.
•
Hope that thej above is clear enough for the CRA to make the right decision on the above
subjects.
Sincerely,
New Arena Square rth & South Ltd.
al mon Yuk
C
SEOPWT
L A QnQCQ47 I I C 'old In l i' I C/i.b � � 4nn7 c l c /nu 11
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