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HomeMy WebLinkAboutR-01-0767J-01.-61.9 7/26/01 Vii. - 777 RESOLUTION NO. A RESOLUTION OF THE MI:A[,/iI CITY COMMISSION AUTHORIZING A GRAN`.[', IN AN AMOUNT NOT `1'O EXCEED `900,000, TO KAPUSTTN CORPORATION ("KAPUSTIN") AND A JOINT PARTNERSHIP, TO BE DETERMINED IN NOT MORE THAN 90 DAYS, FOR TWE REDEVELOPMENT OF AN AFFORDABLE HOUSING CONDOMINIUM, PROJECT KNOWN AS IFLAGLER FIRST CONDOMIN YUM, .LOCATED AT 101 EAST FIAGLER STREET, MIAM , FLORIDA; CONDITIONING SAID AUTHORIZATION UPON KAPUSTIN PROV i DING EVIDENCE OF "'IRM FINANCING VOR THE FULL PROJECT AND THE RECEIPT OF A FULL AND COMPLETE APPRAISAL OF THE FROPOSIE D PROJECT ACCEPTABLE TO THE CITY OF MIAMI; ALLOCATING FUNDS FROM THE AFF'ORDABL'E HOUSING TRUST FUND ACCOUNT CODE NO. 36701; AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE:;. Section 1. A grant, in an anounC r,ot to exceed $900, 000, to Kapustin Corpora L_i.on and a joint partnership, to be determined in not more than 90 days, for the redevelopment of an affordable housing condominium project known as Flagler Fi.r.sr. CITY CO bCC TIIN©' OF in 2. 6 2001 Roeowfior► Ala Condomini.uir►, located aL 101 Fast Flagler Street, Miami, Florida, is authorized, 4J:l.t l funds a -located from the Affordable Housing Trust Fund Account CODE NO. 36701. Section 2. The authorization is conditioned upon Kapust.in providing evidence of firm financing for. L: -1e f.u11 project and the receipt of a full and complete appraisal of the proposed project acceptable to the City of Miami. Section 3. 'ihe City Mariager is authorizedil t:o execute al.l. necrassary documents, in a form acceptable to the Ci..y Attorney, io.r zhe issuance of a grant. Section 3. "'his Resolution shall. become effective i.nmediaLely upon its adopL.i.on and signature of the Ivlayor.`� 1� Phe herein Z:Iulh01"1. 'LataUl'l iS fU2:Che1- ;,object to cornpliance wi to all. requirements that may be imposed by ;he City ALtorncy, including bu: riot. iAwited to those prescribed by appiicabl.e City Charter and Code Povi. i.cns. If: tho Mayor doss not sirJn this Resolution, it stall bOCUme UtEective: at the encs of tcm calondar days from i:he dato i.t was passed adopr.ed. I f the 1-9ayor vr:t:oes, this Res<11.L1L i. 0 11 , i -t shat 1. become effect.Avc !.i11mediately upcon Uverrj.dc o:I' tho v�:CC7 by Lhe C i L y "01RrR'.:2Sl.On. Page 2 of. 3 oi`.. tiG7 • • PASSED AND ADOPTED thi.s 26th day of _.__._ July _-___ 2001. AT1'T;ST: JOE CAROLLO, MAYOR In aocordance with Miami Code Sec. 2.36, since the Mayor did not Indloato approval of this legislation by signing it in the designated place provided, said legislation now becomes effective with the elapso of ten (10) days from the date of Commission ev t;on regarding same, without tho Mayor axercising a veto. after J. Fooman, City Clerk WAL`_TR J . F'OEMAN CTTY CLERK APPROVED AS 'VO FORM AND CORRE,CTNESS:tl A2'�P RO VILARE1,LO - CI T0RNEY W5483: d}a: LB Pack- 3 of 3 j i r 7G7 • • CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and Members of the City Commission FROM: Ar�7ril City Manager 30 DATE: d U L 2 D31 SUBJECT Resolution to Grant Funds from the Affordable Dousing Trust Fund REFERENCES: Resolution ENCLOSURES: FILE: RECOMMENDATION It is respectfully recommended that the City Commission adopt the attached Resolution authorizing granting of funds in the amount of $900,000 from the Affordable Housing Trust Fund Account #367101 to the Kapustin Corporation and a Joint Partnership to be determined in not more than 90 days for the redevelopment of a property into an affordable housing condominium project known as Flagler First Condominium located at 10I East Flagler Street, Miami, Florida. BACKGROUND The Department of Real Estate and Economic Development has prepared the attached legislation pertaining to the redevelopment of an existing commercial building located at 101 East Flagler Street in the downtown central business district. A report prepared by Larson Realty Group, Katherine Beebe & Associates for the DDA Miami entitled "City of Miami Central Business District Reinvestment Strategy" recommends adaptive reuse of upper floors in existing commercial buildings within the CBD to create a vibrant downtown with urban diversity that reaches all sectors of the marketplace and citizens of the city. The report further recommends the creation of 600 residential units through adaptive reuse priced for moderate and middle- income households. An existing building at 101 East Flagler Street is proposed to be redeveloped as a condominium project known as "Flagler First Condominium" by Kapustin Corporation and joint partners. The proposed project would be the first condominium residential project developed in Downtown Miami and will serve as a catalyst for residential development and economic growth. The proposed project is a mixed-use residential/commercial redevelopment of 100,000 sq.ft. of unused office space into 90 affordable housing condominium units with an even mix of one and two bedroom dwellings. The building will also include approximately 7,000 sq.ft of retail space on the ground floor. The starting sales price of the units will be $101.,000, well below the 90 percent of Miami -Dade County's median price of a new home of $152,100. The starting price of $101,000 will be within the means of moderate -income families and appeal to people who currently work in the Downtown, Brickell, and other high employment areas of Miami's urban core. 9 .• The Honorable Mayor and Members of the City Commission Page Two In order for the project, as conceived, to be feasible and maintain the suggested sales price of $101,000 which is within the means of moderate -income families, the project requires a multi- layered financial strategy that combines a variety of funding sources. The amount of $900,000 from tate Affordable Housing Trust Fund is being recommended as a grant to achieve the project's goals. Initial review of the proposal received supports eligibility of the project for funding as it meets the specified criteria which defines affordable housing as "housing with a retail sales price not in excess of ninety (90) percent of current median Dade County new housing sales price," as referenced in the City of Miami Zoning Ordinance. Submission of a full and complete appraisal of the proposed project is being requested to enable the City to perform an in-depth review of key factors related to the project, prior to disbursement of any grant funds. The success of this project will produce, not only the first owner -occupied residential development seen in Downtown Miami in years, but an increase to the City's tax base of approximately $108,000 annually for this property, Therefore, inconsideration of the benefits proposed herein to the citizens of the City of Miami, it is my recommendation that an amount of $900,000 be granted to Kapustin Corporation and joint partners from the Affordable Housing Trust Fund, subject to the City obtaining evidence of firm financing for the full project and the receipt of a full and complete appraisal of the proposed project found acceptable to the City of Miami. CAG a /AR�j 1, 01_ 767 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO Linda Haskins, Director Budget Management Department Arleen Weintraub, Acting Director FROM: Real Estate and Economic Development DATE: June 29, 2001 SUBJECT Funding for Flagler First Condominium Project REFERENCES: ENCLOSURES: Resolution FILE In reparation for the City Commission's approval of the attached legislative item on the July 26t Agenda, we ask that you verify that funds are available in the Affordable Housing Trust Fund Account #367101 in the total amount of $900,000: Account Name: Affordable Housing Trust Fund Amount: $900,000. Purpose: Partial funding for redevelopment of 101 East Flagler Street by Kapustin Corporation and a joint partnership to be determined in not more than 90 days Your signature below will verify that the specified funds are available. TA ARW/CS inda Haskins, Director Budget Management 0-1 ;" `16 7