The URL can be used to link to this page

Home My WebLink AboutR-00-0128J-00-108 2/2/00 RESOLUTION N0. QQ- 128 A RESOLUTION OF THE MIAMI CITY COMMISSION RELATING TO THE DEVELOPMENT OF THE PROPOSED MIAMI RIVER PARK APARTMENTS PROJECT TO BE LOCATED IN THE LUMMUS PARK AREA AT NORTHWEST 4TH STREET AND NORTHWEST 5TH AVENUE, MIAMI, FLORIDA; AUTHORIZING THE CITY MANAGER TO ALLOCATE THE AMOUNT OF $175,000 IN HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM FUNDS AND THE AMOUNT OF $2,300,000 IN HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS. (HOPWA) PROGRAM FUNDS, IN CONNECTION WITH THE DEVELOPMENT OF THE 211 UNIT AFFORDABLE RENTAL HOUSING PROJECT TO MIAMI RIVER PARK ASSOCIATES, LTD. AND BAME DEVELOPMENT CORPORATION OF SOUTH FLORIDA, INC., RESPECTIVELY, SUBJECT TO CERTAIN TERMS AND CONDITIONS; ACKNOWLEDGING BAME DEVELOPMENT CORPORATION OF SOUTH FLORIDA, INC. 'S INTENT TO LEND SAID HOPWA FUNDS TO MIAMI RIVER PARK ASSOCIATES, LTD. FOR THE CONSTRUCTION OF THE PROPOSED HOUSING PROJECT; AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. WHEREAS, the City Commission recognizes that the participation of both the public and private sector is necessary to foster the development of affordable housing units in the City of Miami (City); and WHEREAS; Resolution No. 98-1210.1, adopted December 8, 1998, authorized the City Manager to allocate funding from the City's FY' 1998-1999 HOME Investment Partnership Program, in the amount of $500,000 for the development of the" Miami River Parks crff CONXISS101i MEETING • FEB 19 2000 Resolution No. 00- 1 81 . Apartments, consisting of approximately 211 units of affordable rental housing to be located in the Lummus Park area at Northwest 4th Street and 5th Avenue, Miami, Florida, by Miami River Park Associates, Ltd., whose developers are Gatehouse Development Corporation and BAME Development Corporation Of South Florida, Inc., subject to the conditions that (1) financing to complete construction of the project must be secured, and (2) approval must be granted from the Florida Housing Finance Corporation through the State of Florida's Housing Credit Program for assistance in financing said project. WHEREAS, to date, the developer has secured approximately $12,033,709 in tax credit equity from First Union National Bank; $703,000 from Miami -Dade County; $500,000 from the City of Miami, $528,000 in impact fee waivers from both the City and Miami -Dade County; $4,000,000 in construction financing from First Housing Development of South Florida, Inc., and $1,581,015 in general partner capital contribution and deferred developers' fees; and WHEREAS, due to increases, in the project's estimated cost due to the need to provide adequate parking spaces and modifications to the original project plans, in addition to the need to preserve four (4) historic structures situated on the development site, the developer has experienced a financial shortfall and has requested additional financial assistance from the City in an effort to move the proposed project forward; and Page 2 of 5 WHEREAS, in an effort to provide affordable housing for two hundred eleven (211) low and very low income families and individuals in the City, the Administration recommends allocating an additional $175,000 in HOME Program funds, and $2.3 million in HOPWA Program funds to the sponsors of the proposed Miami River Park Apartments Project, subject to certain terms and conditions; 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 hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. Funding in the amount of $175,000 in HOME Investment Partnership (HOME)_ Program funds are hereby allocated to Miami River Park Associates, Ltd., in connection with the development of the proposed 211 unit Miami River Park Apartments Project. Section 3. Funding in the amount of $2.3 million in Housing Opportunities for Persons With AIDS (HOPWA) Program funds are hereby allocated to BAME Development Corporation of South Florida, Inc., in connection with the construction of the abovementioned affordable rental housing project, subject to Page 3 of 5 certain terms and conditions in the project. For the City's infusion of HOPWA funds into the project, the project sponsors hereby agree to set aside twenty-five (25) units over a twenty-five (2 5) period for, occupancy by low and very low income families and individuals living with HIV/AIDS. Section 4. The City Commission hereby acknowledges that BAME Development Corporation of South Florida, Inc., intends to lend said Housing Opportunities for Persons With AIDS Program funds to Miami River Park Associates, Ltd. for the development of the proposed project. Section 5. The City Manager is hereby authorized/ to execute individual contractual agreement(s), in a form acceptable to the City Attorney, with Miami River Park Associates, Ltd. and BAME Development Corporation of South Florida, Inc., in connection with the development of the proposed Miami River Park Apartments Project. 0 3i 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. 12S Page 4 of 5 Section 6. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.Z/ PASSED AND ADOPTED this 10th day of February 1 2000. JOE CAROLLO, MAYOR In, accordance with Miami Cods See. 2-36, since the Mayor did not Indicate approval of this legislation by signing it in the designated place provided, said tecomes effective with the elapse of ten (10) dW from tb T of Goer; regarding same, without the Manor exea ATTEST: ltera, n, City Cie—rk WALTER J. FOEMAN CITY CLERK AND CORRECTNESS :ja rr' NIRR04VILARELLO ATTORNEY W4118:RCL 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. a Page 5 of 5 00 48 L 2 0 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and Members of the Ci Commission FROM:to Z.arShaw City Manager RECOMMENDATION: DATE: FILE : SUBJECT: Resolution Relating to Development of Miami River Park Apartments Project REFERENCES: City Commission Agenda Meeting ENCLOSURES: of February 10, 2000 It is respectfully recommended that the City Commission adopt the attached resolution to develop the proposed Miami River Park Apartments Project to be located in the Lummus Park area, at Northwest 46' Street and Northwest 5`t' Avenue. The attached resolution authorizes the City Manager to allocate $175,000 in HOME Investment Partnership (HOME) Program funds to Miami River Park Associates, Ltd. and $2,300,000 in Housing Opportunities for Persons With AIDS (HOPWA) Program funds to BAME Development Corporation of South Florida, Inc. to assist in financing the development of the proposed 211 unit affordable housing project. BACKGROUND: In December of 1998, through Resolution No. 98-1210.1, the City Commission approved the allocation of $500,000 in FY 1998-99 HOME Investment Partnership (HOME) Program funds to Miami River Park Associates, Ltd., whose partners are the Gatehouse Development Corporation and BAME Development Corporation of South Florida, Inc., in connection with the development of the proposed 211 unit Miami River Park Apartments Project. Per Resolution No. 98-1210.1, the City's financial commitment of $500,000 in HOME Program funding was subject to the developer securing financial assistance from the Florida Housing Finance Corporation through the State of Florida's Housing Credit Program, in addition to financing from other funding sources in order to complete the construction of the proposed housing project. To date, financing in the amount of approximately $19.3 million has been secured from the following sources: First Housing Development Corporation of South Florida, Inc. First Union National Bank (tax credit equity) Miami -Dade County City of Miami Impact Fee Waivers (City/Miami-Dade County) General Partner Capital Contribution/ Deferred Developers' Fee Total $ 4,000,000 12,033,709 703,000 500,000 528,000 1,581,015 $19,345,724 00- 128 The project site includes seven (7) historic structures. As a result, of the Home Program funding which has been allocated to the proposed project, the City of Miami must conduct a historical preview mandated by Section 106 of the National Historic Preservation Act of 1996. Presently, the Section 106 review required by the City of Miami is underway. Based on a series of meetings that have been held between the developer, City 'staff and local preservationists, which. includes representation from the Dade Heritage Trust and Miami -Dade Historic Preservation Board, there is support for the revised project proposal which has been proffered by the project sponsor. As directed by the City Commission, due to the need for the developer to provide sufficient on-site parking, modifications to the project's design and plans required by the City, and the need to preserve four (4) historic structures situated on the development site, the cost of construction and preservation of the historic structures have substantially increased the overall cost of the project. At the January 13, 2000 City Commission meeting, Mr. Marc S. Plonskier; President of the Gate House Group, Inc., made a personal appearance to address the City Commission to request additional city financial assistance, to cover the increased -cost' of. redesigning the development to accommodate the parking spaces mandated by the City and preservation of four (4) of the historic structures situated on the development site. As a result, the total estimated project cost has increased to approximately $21.8 million. Presently, there exists a project funding shortfall of approximately $2,475,000.00 At its meeting of January 31, 2000, the Housing Committee of the Miami -Dade HIV/AIDS Partnership adopted a motion approving the project sponsor's request for $2,300,000.00 in HOPWA Program funding, in connection with the development of the proposed housing project. On February 1, 2000, the aforementioned funding allocation was also. approved by the Executive Committee of. the Miami - Dade HIV/AIDS Partnership. The attached resolution recommends and authorizes the City Manager to allocate $175,000 in HOME Program funds to Miami River Park Associates, Ltd„ and, $2,300,000 in HOPWA Program funds to BAME Development Corporation of South Florida, Inc., in connection with the development of the 211 unit housing project. As a result of the City's additional financial support to the project, the project sponsor has agreed -to set aside twenty-five (25) apartments over a twenty-five (25) year period for low and very low income families and individuals living with HIV/AIDS. In an effort to expand the availability of new rental housing units in -the City which would be affordable to low and very low income families and individuals, City Commission adoption of the attached resolution is recommended. JFL/Gk/JBH/mb Attachment 2 Q0- 128