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HomeMy WebLinkAboutR-01-0640J-01-567 7/09/01 .1 RESOLUTION NO. 01— — 6 40 A RESOLU'T'ION OF THE MIAMI CITY COMMISSION BY A FOUR-FIFTHS (4/5THS) AFFIRMATIVE VOTE, WITH ATTACHMENT(S), RATIFYING, APPROVING AND CONFIRMING THE CITY MANAGER'S FINDING OF AN EMERGENCY AND APPROVING THE ENGAGEMENT OF STANLEY G. TATE. MANAGEMENT COMPANY TO PROVIDE TEMPORARY PROPERTY MANAGEMENT SERVICES TO THE CITY ON A MONTH TO MONTH BASIS, AT A COST NOT TO EXCEED $3,050 PER MONTH, IN CONNECTION WITH THE CITY'S FORECLOSURE/ACQUISITION OF THE IDEAL REHAB, INC. PROPERTIES LOCATED IN THE MODEL CITY HOMEOWNERSHIP ZONE PROJECT AREA AT 6000 NORTHWEST 12TH AVENUE AND 1215 NORTHWEST 60TH STREET, MIAMI, FLORIDA; FURTHER AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH SAID FIRM, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE; AND ALLOCATING FUNDS FROM THE RENTAL INCOME GENERATED BY THOSE PROPERTIES. WHEREAS, in February 1987, the City of Miami provided a Community Development Block Grant second mortgage loan in the amount of $560,000 to Ideal Rehab, Inc., to finance the rehabilitation of two (2) multifamily apartment buildings located in the Model City Homeownership zone Project Area at 6000 Northwest 12`h Avenue and 1215 Northwest 60`h Street; and WHEREAS, in 1998, Unibank, which held the first mortgage, filed a foreclosure suit against Ideal Rehab, Inc.; and CITY OMM6 ll�I 1 tl 1001 Ruwlnt�on raa. 01_60 WHEREAS, in response to that foreclosure action, Ideal Rehab, Inc. filed for bankruptcy protection under Chapter 11, and a court appointed receiver was retained to manage the aforementioned properties; and WHEREAS, Unibank's first mortgage of approximately $183,519 (exclusive of interest and other related costs) was purchased by Miami Capital Development Corporation (MCDC); and WHEREAS, in response to the office of the Inspector General HUD Audit, the Department of Community Development referred the aforementioned loan to the City Attorney's Office to initiate foreclosure action to protect the City's first and second mortgage interests of approximately $511,408 in the subject properties; and WHEREAS, pursuant to City Commission Motion No. 99-149, the City Manager was authorized to issue a Request for Proposals ("RFP") for the procurement of property management services in connection with single family homes and multifamily apartment buildings recaptured as a result of foreclosure action initiated by the City; and WHEREAS, presently the Department of Purchasing is in the process of preparing the RFP to secure the aforementioned services, however, the process was not completed prior to the City taking possession of the Ideal Rehab, Inc. properties on March 15, 2001 through the City's foreclosure action; and Paye 2 of 5 01— 1„„ 640 • 0 WHEREAS, over the past three years, Stanley G. Tate Management Company has nerved as a court appointed receiver and has provided on-going property management services; and WHEREAS, Stanley G. Tate Management Company has agreed and is willing to continue to provide management services to the City on a month-to-month basis until such time the City has completed the RFP process and has a property management company in place; and WHEREAS, Stanley G. Tate Management Company has agreed to provide this service to the City for approximately $3,000 per month plus certain other out of pocket expenses not to exceed $50.00 per month; and WHEREAS, in an effort to ensure that the required property management services are in place prior to the City's completion of the RFP process, the Administration recommends the retention of. the Stanley G. 'fate Management Company on a month-to-month basis to provide said services; 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. Page 3 of 5 01- 640 Section 2. By a four -fifth (4/5 -ho) affirmative vote, of the Miami City Commission, the City Manager's finding of an emergency and engaging Stanley G. Tate Management Company to provide temporary property management services to the City on a month to month basis, at a cost not to exceed $3,050 per month, in connection with the City's foreclosure/acquisition of the Ideal Rehab, Inc. properties located in the Mode]. City Homeownership Zone Project Area at 6000 Northwest 121"h Avenue and 1215 Northwest 60th Street, Miami, Florida, are ratified, approved and confirmed, with funds allocated from the rental income generated by said properties. Section 3. The City Manager is authorizedl� to enter intro an agreement, in a Corm acceptable to the City Attorney, with Stanley G. Tate Management Company, for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption and signature of. the Mayor Y 11 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. 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 4 of 5 oi- 640 Page 5 of S O1- 640 0 CITY OF MIAMI, FLORIDA is INTER -OFFICE MEMORANDUM .o The Honorable Mayor and Members of DATE JUN 2 6 ..'31 F,LE the City Commission SUBJECT Resolution Ratifying Approving and Confirming City Manager's Action to Retain Stanley G. Tate Management FROM REFERENCES Company Car os eZ ENCLOSURES' City Commission Meeting City Manager of July 10, 2001 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution by a 4/5"" affirmative vote, ratifying, approving and confirming the City Manager's action to retain and contract with Stanley G. Tate Management Company to provide temporary property management services to the City in connection with the Ideal Rehab, Inc. properties. The aforementioned services will be provided by the firm on a month to month basis at a cost not to exceed $3,050 per month. The attached resolution further authorizes the City Manager to enter into an agreement with Stanley G. Tate Management Company, in a form acceptable to the City Attorney, for said purpose. BACKGROUND: In February 1987, the City of Miami provided a Community Development Block Grant (CDBG) loan in the amount of $560,000 to Ideal Rehab, Inc. to finance the rehabilitation of two (2) multifamily apartment buildings Iocated at 6000 Northwest 12`h Avenue and 1215 Northwest 60th Street in the Model City Homeownership Zone Project Area. In 1998, the first mortgage, Unibank, filed a foreclosure action against Ideal Rehab, Inc. for non- payment of its fust mortgage. In response to this legal action, Ideal Rehab, Inc. filed for bankruptcy protection under Chapter 11 and Stanley G. Tate Management Company was appointed receiver by the court to manage the subject properties. Subsequently, Unibank's first mortgage was purchased by Miami Capital Development Corporation to protect both the City's second mortgage and MCDC's third mortgage interest in the properties. In response to the OIG HUD Audit, the Department of Community Development referred the aforementioned loan to the Law Department to initiate foreclosure action to further protect the City's interest in the aforementioned properties. On March 15, 2001, a foreclosure sale occurred and ownership of the properties are currently vested in the name of the City. 01- 640 111111101MR& the Honorable Mayor and Members of the City Commission Page 2 Although, the Department of Purchasing is in the process of issuing a Request for Proposals (RFP) for the procurement of services for property management of all single family homes and multifamily apartment buildings which may be recaptured as a result of foreclosure action initiated by the City, the RFP process has not been completed. Absent of a property management firm to manage the residential property recaptured by the City as a result of legal action against the owner, it was determined that the most appropriate solution to this issue would be to retain the existing firm. Over the past three (3) years, Stanley G. Tate Management Company has managed the subject properties as the court appointed receiver. The attached resolution ratifies, approves and confirms the City Manager's action of retaining Stanley G. Tate Management Company on a month to month basis at a cost not to exceed $3,050 per month. Presently, the two (2) properties generate a monthly rental income of approximately $11,385. The cost of providing the said temporary property management services to the City will be covered by the rental income generated by the properties. In an effort to ensure that the appropriate property management services remain in place until such time that the City can complete the RFP process and City Commission appointment of a property management firm, the Administration recommends the retention of the Stanley G. Tate r t Company on a monthto-month basis. B/GCFJBH Enclosure 01- 640 0 0 INTER -OFFICE hIEh10RANDUMI Carlos A. Gimenez Ci anager 06h�olmWarren, Dir/evelopment r Department of Community r March 2, 2001 Retention of Property Management Services Ideal Rehab Property 6000 N. W. 12'h Avenue 1215 N. W. 601h Street In February 1987, the City provided a CDBG loan in the amount of $560,000 to ideal Rehab, Inc. (second mortgage) to finance the rehabilitation of two (2) multifamily apartment buildings located at 6000 Northwest 12'h Avenue and 1215 Northwest 60'h Street in the Model City neighborhood. In 1998, the first mortgagee, Unibank, filed a foreclosure action against Ideal Rehab, Inc. As a result, Ideal Rehab, Inc. filed for bankruptcy protection under Chapter 11 and a court appointed receiver was retained to manage the property. Subsequently, Unibank's first mortgage of approximately $183,519.47 (exclusive of interest and costs) was purchased by Miami Capital Development Corporation to protect the City's -second mortgage and MCDC's third mortgage interest in the property. In response to the OIG HUD Audit, the Department of Community Development referred the aforementioned loan to the Law Department to initiate foreclosure action to protect the City's interest in the property. Presently, the City holds a first and second position mortgage of approximately $511,408.60. A foreclosure sale has been scheduled for March 15, 2001. At that time, the foreclosure process will be completed and ownership of the property will be vested in the name of the City. In February 1999, through Resolution No. 99-149 the City Commission authorized the City Manager to issue a Request for Proposals (RFP) for the procurement of services for property management for single family and multifamily apartment buildings recaptured as a result of foreclosure action initiated by the City. Presently, the Department of Purchasing is in the process of preparing the RFP to secure the aforementioned services. However, it appears at this time the RFP process will not be completed prior to the City taking possession of the Ideal Rehab, Inc. property on March 15. Presently, the subject property is being managed by Stanley G. Tate Management Company (Receiver). Stanley G. Tate Management Company is willing to continue to provide management services to the City on a month-to-month basis until such time the City has a property management company in place. The firm has agreed to provide this service to the City for approximately $3,000 per month in addition to certain expenses, O1- 640 0 professional fees, etc. in an amount not to exceed SS0.00 per month. Based on stairs review of the financial report submitted monthly by Stanley 0. Tate Management Company, it is anticipated that the cash flow from the property will cover the receiver's management fees and related reimbursable expenses. In an effort to ensure that the appropriate property management services are in place prior to the City completing the RFP and City Commission appointment of a property management firm, the Department of Community Development recommends the retention of the Stanley G. 'Tate Management Company on a month-to-month basis to provide this service. ' If you concur with this request, please indicate by affixing your signature below. .isaas�- • 01- 640 Tate Enterprises January 23, 2001 :' . s •:: ,�, <: • s,:,t.:r, . n,,, i,,,,, Fw,:�, a, Deanna Gross Rasco. Esq. Assistant City Attorney Miami Riverside Center, Suite 945 444 S. W. Second Avenue Miami, FL 33130 RE: Case No. 97-18313 CA 01 (01) Miami Capital Development, Inc., as assignee of UniBank, et al., vs. Ideal Rehab, Inc., et al. ("KingHeights Plaza and KingHeights Manor" Receivership) Dear Ms. Rasco: Pursuant to the Order Granting Final Discharge of Receiver and Order Awarding Receiver's Fees and Receiver's Attorneys Fees, executed by Judge Philip Bloom on January 3. 2001 (a copy is enclosed for your convenience), the Receiver was discharged from all matters, which are the subject of this Receivership. However, Judge Bloom added that the discharge is "to be effective upon the date of issuance of a Certificate of Title as a result of the foreclosure sale which the Court has ordered". In an attempt to maintain the property on an ongoing basis, and to make it as simple as we can for the City of Miami, who eventually will be the owner, we are continuing our management of the facilities, including our attempts to rent the apartments and do the necessary work to make them into market -ready condition, at a minimum cost. We will undertake this responsibility for the same fee amount that we quoted to the City of Miami when you originally discussed with us your desire for us to continue to manage the property. Accordingly, the property will be managed on an ongoing basis, for a fixed fee of $3,000 per month, with the understanding that all expenses, professional fees, etc., will be reimbursable expense. We will also continue to maintain all the books and records of this job, and provide a financial report of the operation of both properties, on a monthly basis. If you are not in accord with this Agreement, please let me know immediately. If we do not hear from you to the contrary, we will assume this is a satisfactory arrangement, and remain as such until such time as we are notified, in writing, otherwise. We will enter into a more formal Management Agreement when the foreclosure has been completed, and the City has title to these properties. Sincerely yours, IDEAL REHAB RECEIVERSHIP STANLEY G. TATE Receiver scTJb u I. Barryeluber9, Esq. Breda Ald.mw 640 Q 1— NOTICE OF PUBLIC HEARING ON COMMUNITY DEVELOPMENT ISSUES AND THE PROPOSED FY 2001 ACTION PLAN FOR THE USE OF HUD GRANT FUNDS BY THE CITY OF MIAMI Funding recommendations for the City of Miami Community Development Block Grant (CDBG) Program, Housing Opportunities for Persons With AIDS (HOPWA) Program and the Emergency Shelter Grant (ESG) Program will be considered and approved. Pursuant to the Department of Housing and Urban Development 24 CFR Part 91, et al, it is required that the City of Miami submit its Annual 2001-2002 Action Plan to the U.S. Department of Housing and Urban Development (HUD). The City of Miami has completed a series of Public Hearings in each City Commission District to solicit community input and participation in the development of the proposed Annual Action Plan. The final Public Hearing to discuss and approve funding recommendations for FY'2000-2001 activities for the aforementioned HUD grant programs and other Community Development issues will be held: Tuesday, July 10. 2001 at 8:55 A.M. City of Miami Commission Chamber 3500 Pan American Drive Miami, Florida The Agenda for the Special Meeting is as follows: 1. Discussion and proposed resolution to establish a policy on the rollover of funds for multi-year contracts for construction related brick and mortar projects. 2. Discussion and proposed resolution to establish a policy that establishes time limits for multi-year brick and mortar project contracts for no less than two (2) years or no longer than three (3) years. 3. Discussion and proposed resolution approving the City of Miami Public Housing Plan. 4. Second reading of Ordinance creating the Model City Homeownership Trust. S. Discussion and proposed resolution appointing the following six (6) individuals as members to the Model City Homeownership Trust: Shalley Jones, George Knox, Lucia Dougherty, Hector Brito, Patrick Range and Linda Haskins. 6. Update on the Model City Homeownership Pilot project. 7. Discussion and proposed resolution ratifying the purchase of computer training at a cost of $5,133 to implement the mortgage servicing system software. �i - 640 8. Discussion and proposed resolution ratifying the retention of the Stanley G. Tate Management Company to provide management services relating to the Ideal Rehab foreclosure property. 9. Discussion and proposed resolution extending the construction and completion date for the Rafael Hernandez Housing and Economic Development Corporation to complete its affordable housing Project. 10. Discussion and proposed legislation amending previously adopted resolutions to properly reflect the legal name of the joint venture developer of 15-21 new single family homes planned for development on scattered city -owned parcels located in the Edison -Little River Commumiry Revitalization District; further authorizing the City Manager to approve and reimburse Banyan Townhomes, L.L.C. and Habitat for Humanity of Greater Miami, Inc. for eligible pmdevelopment and/or project related costs incurred since January 27, 2000 relating to the development of affordable housing units in the Edison Little River and Overtown neighborhoods. 11. Discussion and proposed legislation allocating 550,000 to CAMACOL for administrative costs to assist businesses in the Little Havana Community Revitalization District. 12. Discussion and proposed resolution allocating 550,000 to implement a Special Economic Development Initiative to assist businesses on S.W. 8 Street between S.W. 4 and 19 Avenues in the Little Havana Community Revitalization District. 13. Discussion and proposed emergency ordinance establishing a Special Revenue Fund and authorizing the City Manager to accept the 2001 Welfare Transition Program Grant from the South Florida Employment and Training Consortium. 14. Discussion and proposed emergency ordinance establishing four Special Revenue Funds and authorizing the City Manager to accept the 27h Year Entitlement grants from U.S. HUD for the Community Development Block Grant, HOME, HOPWA and Emergency Shelter Grant Programs. 15. Discussion and proposed emergency ordinance allocating 270' Year Entitlement grants from U.S. HUD for the Community Development Block Grant, HOPWA and Emergency Shelter Grant Programs. The Administration will present the following funding recommendation: Proposed Use of $13.148.000 of Community Development Block Grant (CDBG) Funds and 5450.000 of Program Income from the Commercial Loan Program Economic Development Funding Allapattah Business Development Authority, Inc. $150,000 Catholic Charities Pierre Toussaint Haitian Center 150,000 Coconut Grove Pilot Project 50,000 Downtown Miami Partnership 150,000 Edgewater Economic Development Corporation 100,000 Human Services Coalition of Dade County 100,000 Latin Chamber of Commerce (CAMACOL) 200,000 Neighbors and Neighbors Association 150,000 Overtown Pilot Project 50,000 Rafael Hernandez Housing & Economic Development 150,000 Small Business Opportunity Center 250,000 Women's Business Development Center 50,000 Word of Life Community Development Corp. 100,000 Commercial Fa;ade Improvements 450.000 Total for Economic Development Activities $2,085,000 01-- 640 ,Z - H2311111ill F>!tnifinit Allepattah Business Development Authority, Inc. S 75,000 BAME Development Corporation of South Florida $2,762 CODEC, Inc. 225,000 East Little Havana Community Development Corp. 225,000 Greater Miami Neighborhoods 75,000 Haven Economic Development Corporation 50,000 Habitat for Humanity of Greater Miami 75,000 Jewish Family Services 55,000 Jubilee Community Development Corp. 107,238 Little Haiti Housing Association 75,000 Miami Dade Community Development, Inc. 50,000 Model Housing Cooperative 50,000 Vision to Victory 105,000 Total for Housing Activities $1,230,000 Historic Preservation City of Miami retired Police Officers Community $327,100 Benevolent Association Catholic Charities/Services for the Elderly Total for Historic Preservation Activities S 327,100 Public Services Action Community Center $325,000 Allapattah Elderly Meals Program 350,000 Aspira of Florida, Inc. 55,500 Association for the Development 54,085 Of the Exceptional Boys and Girls Club of Miami 20,000 Catholic Charities/Centro Hispano 30,000 Catholic Charities/Centro Mater Child Care 74,000 Catholic Charities/Centro Mater Child Care 42,750 Teen Outreach Catholic Charities/Emergency Services 19,000 Catholic Chartties/Notre Dame Childcare 45,000 Catholic Chatities/Saagraada Familia 75,000 Catholic Charities/Services for the Elderly 28,500 Center for Haitian Studies (Food Voucher Program) 66,500 Center for Information and Orientation (Child Abuse 66,500 Project) Children's Psychiatric Center 20,000 Coconut Grove Cares 100,000 Columbian American Service Association 25,000 Deaf Services Bureau 30,000 Do Hostos Senior Center 240,000 Dominican American National Foundation 25,000 Dr. Rafael Penalver Clinic 50,000 Fifty Five Years and Up 25,000 First United Methodist Church Hot Meals 21,000 HAITIAN American Foundation 75,000 Hispanic Coalition 30,000 KIDCO Childcare 100,000 ©1- 640 0 Liberty City Optimist Club 47.500 Lions Home for the Blind 80,000 Little Havana Activities Center/Eiderly Meats 260,000 Little Havana Activities Center/Pro Salud 63,000 Mental Health Association of Dade County/ 63,944 A Woman's Place Miami Behavioral Health Center 30,000 Miami Jewish Home and Hospital for the Aged/ 33,000 Douglas Gardens Southwest Social Services 125,000 The Alternative Program 75,000 Urgent, Inc. 25,000 Victim Services Center 25,000 YMCA of Greater Miami/Carver Branch 66,500 YMCA of Greater Miami/International Branch 50,000 Public Services Contingency Fund 51.721 Total for Public Service Activities City Funded Activities $3,117,500 Grant Administration (20%) $2,629,000 Section 109 Loan Guarantee Debt Service 1,100,000 Code Enforcement $1,000,000 CRA (baseline funding as per Interlocal Agreement) 479,900 Demolition 500,000 Lot Clearance 330,000 Parks and Recreation Dept. (Disabilities Program) 122,000 Parks and Recreation Dept. (Overtown Youth 47,500 Recreation Program in conjunction with Overtown Optimist Club) Little Haiti Job Creation Project 225,000 Planning Department — Establishment of 225,000 Comprehensive Historic Preservation Program Departments of Planning, Real Estate and Economic 140.000 Development, and Community Development - Preliminary planning study for proposed Little Havana Homeownership Project Total City Funded Activities 56,818,400 Proposed Use of HOPWA FulWs - S10".000 Long Tam Housing Miami Dade Housing Agency $3.051,930 City of Miami Dept. of Community Develop. 3,700,000 Douglas Gardena Community Mental 611,000 Health Center of Miami Beach Miami Dade Housing Agency Utilities Assistance Grant Administration 305,070 Agape Family Ministries 126,000 BAMS Development Corporation of South Florida 18,300 Better Way of Miami 75,000 Center for Positive Connections 100,000 Greater Bethel AME Church 134,000 Greater Miami Community Service, Inc. 250,000 01- 640 0 r Lock Towns Community Mental Health Canter 124,700 Spanish American Basic Education & Rehabilitation 287,000 Shelboume Apartment Building, Inc. 103,000 Total HOPWA Funding Pronoaed Use Emerrencv Shelter Grant 510,269,000 of Elluds City of Miami Homeless Program —S448-000 $434,560 Program Administration 13,440 Total Emergency Shelter Grant 5148,000 Interested individuals are encouraged to attend the above Public Hearing. The Heating she is accessible to the handicapped. Following the Public Hearin& the public review and comment period will run from July 11, 2001 du+ough August 10, 2001. The City of Miami invites all interested parties to communicate their comments regarding the proposed Action Plan in writing to: City of Miami Department of Community Development 444 S.W. 2 Avenue, Second Floor Miami, Florida 33130 ot. 640