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HomeMy WebLinkAboutR-03-0871J-03-390 07/24/03 RESOLUTION NO. 03— 871 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT (S) , BY A FOUR-FIFTHS (4/5 THS) AFFIRMATIVE VOTE, APPROVING THE ACQUISITION OF THE PROPERTIES LISTED ON "ATTACHMENT 1," ATTACHED AND INCORPORATED, ON BEHALF OF THE MODEL CITY COMMUNITY REVITALIZATION DISTRICT TRUST, SUBJECT TO COMPLIANCE WITH ALL FEDERAL, STATE AND LOCAL REGULATIONS; AND ALLOCATING FUNDS DESIGNATED FOR THE MODEL CITY TRUST IN THE BUDGET FOR FISCAL YEAR 2003, SUBJECT TO THE AVAILABILITY OF FUNDS. WHEREAS, the Model City Community Revitalization District Trust ("Trust") a limited agency and instrumentality of the City of Miami ("City"), wishes to purchase certain property as listed on "Attachment 1," attached and incorporated; and WHEREAS, it is in the best interest of the City and the Trust that the purchase price of each individual property to be acquired by the Trust be approved by the Trust's Board of Directors; and i f A T T 6"4 d^ C 7 7 � w" �a�4 c CITY COIdTSSION MEETING OF J U t. 2 4 2003 Resolution No. 1)3 - 871 1� WHEREAS, it is in the best interest of the City that the City Commission approve the purchase price of each individual property; and WHEREAS, the Trust has approved contracts with the property owners for purchase prices that exceed 15% above the average of the two appraisals; and WHEREAS, State of Florida law authorizes the governing body of a municipality to purchase a property for an amount in excess of appraisal by a four-fifths (4/5ths) affirmative vote; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. By a four-fifths (4/5ths) affirmative vote, the acquisition of the properties listed at the price listed and highlighted on "Attachment 1," attached and incorporated, on behalf of the Trust is approved, subject to compliance with all federal, state and local regulations, with funds designated for Page 2 of 3 03- 871 the Model City Trust allocated in the budget for Fiscal Year 2003, subject to the availability of funds. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.11 PASSED AND ADOPTED this 24th day of July , 2003. ATTE RISCILLA A. THO P ON CITY CLERK APPROVED Aa..&O FORM AND CORRECTNESS CITY/PATTORNEY 188:tr:AS:BSS �i If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 3 of 3 03- 871 Attacrrrfient I -- Land Acquisition Resolution _--•- ^ t70 Sur Z•t LVV.5 Diff. Be -w. 15% Prop. No propel 2002 Assessment Average o 15% Above above average (1QiZ) Beller Name Address Phone No. Value Appr.#1 Appr.#2 two Appraisals Purchase Price* the Average and Purchase Price 71 6020 Apartments, Inc., c/o 1301 NW (305)285- 5,996 5,100 6,700 5,900 7,630 6,785 845 Notes Note 1 Malcolm Wiseheart, 60 St 1222 President' Vacant lot 72 6020 Apartments, Inc., c/o 1315 NW (305) 285- 5,906 51000 6,600 5,800 7,530 6,670 860 Note 1 Malcolm Wiseheart, 60 St 1222 President Vacant lot 5858 NW (305) 333- Note 3 226 Darryne Thomas 13 Avenue 1766 58,136 83,000 100,000 91,500 115,000 105,225 9,775 227 Darryne Thomas 5852 NW (305) 333- 58,136 83,000 100,000 91,500 1!5,000 105,225 9,775Note 3 13 Avenue 1766 237 Malcolm Wiseheart, Jr. 1387 NW (305) 285- 5,867 7,200 9,400 8,300 )0,2 9,545 690 Note 1 Trustee 58 Terr. 9471 Vacant lot 370 John Henry Thompson & 5801 NW (954) 316- 5,867 7,200 10,000 8,600 11,185 9,890 1,295 Note 1 Estate of William 13 Ave 8058 Thompson Vacant lot 458 Alexander & Sonia Flowers 1420 NW (305) 6215- 34,166 65,000 67,500 66,250 76,943 76,187 0 Note 1 11 57 St. 1062 Single Fam Vacant 617 Randolph and Mary 1645 NW 24,035 17,500 22,500 20,000 24,035 23,000 1,035 Note 2; Thomson 'f 55 St Vacant lot MCT 03- � 014 750 Mack Barkley, Jr. 1625 NW (305) 624- 8,052 10,300 12,000 11,150 13,135 12,823 313 54 St 2865 Note 1 Parking lot for motel - JL II i see 749 v TOTAL 89,889 283,300 334,700 309,0001 367,5581 355,3501 14,513 t70 S7 Partnerships for a NEWMIAMI To: Honorable Mayor and Members of the City Commission From: Marva L. Wiley, Acting President/ CEO, Model City Trust wft� Subject: Acquisition and Purchase Price Approval Date: July 18, 2003 RECOMMENDATION: It is respectfully recommended that the City Commission approve by four-fifths vote the nine (9) properties at the prices listed and highlighted (see attachment) as the purchase price exceeds the average of two appraisals plus fifteen percent. BACKGROUND: The City Commission executed a policy that requires that each property for acquisition in the Model Cify Homeownership Zone project area receive two (2) appraisals on a property to establish the fair market value of the property. Consistent with the Board's adoption of the City Commissions policy for land acquisition in Community Revitalization Districts (Resolution No. 02-678) that was subsequently adopted at the Board's meeting of July 16, 2002, staff negotiated up to 15% above the average of the two appraisals. The appraisers were selected from the City's qualified appraisers list established as a result of a formal solicitation process. To ensure expedited processing of appraisal requests and more favorable pricing for the project, given the anticipated economies of scale, interested firms from that list were invited to respond to a closed bid process for a rate schedule to perform appraisals exclusively for the Model City Homeownership Pilot Project acquisitions. You should also note that Evans Environmental & Geosciences (EE&G) completed several environmental site assessments over the affected area. All properties slated for approval here have received an environmental clearance from EE&G through either the Areawide Phase I or the subsequent Phase II where appropriate. Six (6) of the nine (9) properties on List 1 were under contract with the City for more than a year. Although these property owners had closing dates, the closings could not occur because the U.S. Department of Housing and Urban Development (HUD) had not yet given environmental clearance for the project. l 03- 871 Upon receipt of the clearance from HUD, staff prepared new offer letters for the negotiated purchase price. With the delays in closing, the log which had been maintained to track offers and purchase prices was updated to reflect the closing costs on these six properties (Note 1). • MHZ 71 M 1 1 W' h 4-110 MHZ 72 • MHZ 237 • MHZ 370 • MHZ 458 • MHZ 750 a co m ise Bart Malcolm Wiseheart Malcolm Wiseheart William Thompson Alex and Sonia Flowers Mack Barkley, Jr. 1301 NW 60 Street 1315 NW 6011, Street 1387 NW 58th Terrace 5801 NW 13th Avenue 1420 NW 57th Street 1625 NW 54th Street As you know, that delay in closing occurred during a significant organizational change that transitioned responsibilities for the Homeownership Zone from the Department of Community Development to the Model City Community Revitalization District Trust. Thus, the Trust's staff, charged with securing new contracts for acquisition, inadvertently included closing costs that were rolled into the tracking log's price fields to produce the new offer letters and the subsequent contracts. At its meeting of January 13, 2003, the Board of Directors approved a policy that would allow an offer of the current tax assessment to be made where the property's assessed value exceeds the appraised values. The following property meets that condition (Note 2): • MHZ 617 Randolph Thomson 1645 NW 5511, Street At its meeting of April 14, 2003, the Board of Directors of the Model City Trust approved the acquisition of vacant land on the attached list. Please find attached the resolutions approved by the Board of Directors. Two properties on the attached list reflect properties appraised in 2001 for acquisition. Prior contracts secured by the City expired such that Trust staff set about securing new contracts with the old offers. (Note 3). • MHZ 226 Darryne Thomas 5858 NW 13 Avenue • MHZ 227 Darryne Thomas 5852 NW 13 Avenue Given the significant increase in property values in the area, the Trust believes that the inflated cost (with the FY 2002 closing costs) would be significantly less than the cost would be if additional appraisals were secured. State law authorizes the City Commission as the governing body to acquire property in excess of the property's appraised value by a four-fifths vote of the Commission. 2 03- 871