HomeMy WebLinkAboutR-00-0256J-00-267
3/21/00 '
RESOLUTION NO 00V 256
A RESOLUTION OF THE MIAMI CITY COMMISSION
AUTHORIZING THE CITY MANAGER TO EXECUTE A
SUBORDINATION AGREEMENT BETWEEN THE CITY OF
MIAMI, EAST LITTLE HAVANA COMMUNITY
DEVELOPMENT CORPORATION, PACIFIC NATIONAL
BANK, LOCAL INITIATIVES SUPPORT CORPORATION
AND MIAMI -DADS COUNTY IN CONNECTION WITH THE
FINANCING OF THE DEVELOPMENT OF THE PROPOSED
LATIN QUARTER SPECIALTY CENTER PLANNED IN THE
LITTLE HAVANA NEIGHBORHOOD;
WHEREAS, Resolution No. 95-560, adopted July 13, 1995, East
Little Havana Community Development Corporation ("ELHCDC")was
designated, in principle, as sponsor to undertake the
development of a 50-75 unit residential/retail mixed-use project
consisting of 10,000-15,000 square feet of retail space planned
for development on City -owned parcels located at 1435, 1453 and
1461 Southwest 8th Street in the Little Havana neighborhood; and
WHEREAS, Resolution No. 98-169, adopted February 10, 1998,
authorized the City Manager to convey and dispose of the
City -owned parcels located at 1435, 1453 and 1461 Southwest 8th
Street, Miami, Florida to ELHCDC at no cost, subject to certain
terms and conditions, in connection with the development of the
proposed Latin Quarter Specialty Center ("Project"); and
CITY COMMISSION
MEETING Of,
MAR 2 3 2000
Resolution No.
r
WHEREAS, Resolution No. 97-864, adopted December 9, 1997,
allocated $1,000,000 in State Housing Initiatives Partnership
(SHIP) Program funds to the ELHCDC financing of the Project; and
WHEREAS, Resolution No. 99-752, adopted October 12, 1999,
allocated an additional $1,600,000 in Community Development
Block Grant Program funds to the ELHCDC for financing of the
proposed Project; and
WHEREAS, additional financing of the Project will be
provided by Pacific National Bank in the amount of approximately
$3,800,000, $1,200,000 from the Local Initiatives Support
Corporation $1,200,000 and $1,650,000 from Miami Dade County;
and
WHEREAS, the City's financial support in the amount of
$2,600,000 to the Project will be recorded on the development
site prior to the organization closing with the other lenders
for construction financing; and
WHEREAS, in order for various affordable housing projects
and joint housing ventures between the City, Miami -Dade County,
not-for-profit housing community development corporations,
private foundations and financial institutions, to come to
fruition, it is necessary in many instances that the City of
Miami take an inferior position and subordinate its mortgage for
site acquisition cost or construction financing to the other
project financing sources; and
Page 2 of 4
WHEREAS, in an effort to move the construction of the
proposed Latin Quarter Specialty Center Project forward, it will
be necessary for the City to subordinate the land and
construction financing in the amounts of $1,000,000 and
$1,600,000;
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. The City Manager is hereby authorizedll to
execute a subordination agreement between the City of Miami, East
Little Havana Community Development Corporation, Pacific National
Bank, Local Initiatives Support Corporation and Miami -Dade County
in connection with financing associated with the construction of
the proposed Latin Quarter Specialty Center Project.
�i 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.
Page 3 of 4 0
Section 3. This Resolution shall become effective
immediately upon adoption and signature of the Mayor./
PASSED AND ADOPTED this 23rd day of March 2000.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of
this legislation by signing it in the designated plane rovided,
P sai.1 Pec�isP tion nevi
begcomeg effective with the elapse n (10) day rotate of Com, = cn action
regarding same, without the Mavo exr-rrurrA, a , .-
ATTEST:
WALTER J. FOEMAN
CITY CLERK
APPROVE AS Q/
0DRO WILARELLO
?ATTORNEY
4254:RCL
Walter
01
AND CORRECTNESS
Clerk
If the Mayor does not sign this Resolution, it shall become effective at
the end of the 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 4- 61 U � 0 "
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and DATE: MAR I FILE:
Members of the City Commission
SUBJECT: Latin Quarter Specialty
Center
FROM: ar. Wars REFERENCES: City Commission Meeting
City Manager March 23, 2000
ENCLOSURES:
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the following three (3)
resolutions relating to the development of the Latin Quarter Specialty Center by the East
Little Havana Community Development Corporation (ELHCDC); and further authorizing
the City Manager to enter into contract or amend existing agreements as a result of the
proposed legislation, in a form acceptable to the City Attorney, subject to applicable City
Code provisions.
The first proposed resolution authorizes the City Manager to execute the appropriate
subordination agreements to enable the ELHCDC to acquire adequate financing to
develop the Latin Quarter Specialty Center project. The second resolution grants an
extension to the ELHCDC to commence the Project by December 31, 2000. The third
resolution de -obligates $1,000,000 of 1996-97 State Housing Initiatives Partnership
Funds (SHIP) funds previously authorized by Resolution No. 97-864 and replaces this
award with $1,000,000 of 2000-2001 SHIP funds.
BACKGROUND:
At its meeting of March 9, 2000, the City Commission discussed the Latin Quarter
Specialty Center Project and directed the Administration to provide a status report of the
project at the next City Commission meeting. The Administration indicated that it would
report back to the City Commission at that time and prepare appropriate legislation to
ensure that the project could move forward without delay.
As reported at the previous Commission meeting, ELHCDC is now in a position to
coordinate the financing for proposed 45 -unit mixed-use Latin Quarter Specialty Center
Project planned in the Little Havana neighborhood. City of Miami funding is in place
and contracts have been executed for the $1.6 million Community Development Block
Grant contribution and the $1 million SHIP allocation to enable ELHCDC to initiate the
appropriate actions to follow through and begin the project.
The Department of Community` Development has prepared three (3) resolutions to
facilitate development activities for the ELHCDC in conjunction with the Latin Quarter
-
Specialty Center Project. Following is` 'an overview of the legislative actions
recommended to ensure that ELHCDC can move forward with this project in a timely
manner:
Resolution 1. - Execution of Appropriate Subordination Agreements to Acquire
Financing
As previously cited, the City of Miami' has contributed $2.6 million � to the Latin Quarter
Specialty Center Project being developed by ELHCDC: Pacific National Bank will
provide additional financing to the Project in the amount of approximately $3.8 million
and $1.2 million will. be provided by the Local Initiatives Support. Corporation (LISC).
In order for the City to joint venture with not-for-profit housing community development
corporations,' private foundations and financial institutions to develop affordable housing
projects, it is often necessary that the City of Miami take an inferior position and
subordinate. its mortgage for site acquisition costs and/or construction financing to the
other-proj'ect financing sources to ensure that these projects come to fruition.
In an effortto move the- construction of the proposed Latin Quarter Specialty Center
Project forward, it will be necessary for -the City to subordinate the land and construction
financing in the amounts of $1 million and $1.6 million. The first proposed resolution
authorizes the City Manager to execute the subordination agreement(s) between the City
of Miami, East Little .Havana Community Development Corporation, Pacific National
Bank, Local Initiatives Support Corporation (LISC) and Miami -Dade County in
connection with financing associated with the construction of the proposed Latin Quarter
Specialty Center Project.
Resolution -2 - Extension to Commence Construction
Pursuant to Resolution No. 98-169, adopted February 10; 1998, the City Commission
authorized the City Manager to convey and dispose of city -owned parcels located at 1435,
1453 and 1461 S.W. 8a' Street, Miami, Florida, in the Little Havana neighborhood to the
East Little Havana Community Development Corporation (ELHCDC) in connection with
the development of the proposed Latin Quarter Specialty Center (the . "Center").
However, under the terms of, the conveyance document, ELHCDC `was required to
commence construction on the Center within twelve months from the date of the .City
Commission action or the subject parcels would revert back to the City the conveyance
document.
Subsequently, the City Commission adopted Resolution No. 99-83 at its meeting of
January 26, 1999 that granted an' additional six month extension to August 10, 1999 to
begin construction of the project. The second proposed resolution further extends the
requirement to commence construction to December, 31,.2000. It is anticipated that this
commencement extension will provide sufficient 'time for ELHCDC to finalize its
financing for the project and begin construction. It is the Administration's understanding
that funding from Miami -Dade County is contingent upon a June construction. start.
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The proposed resolution further authorizes the City Manager to amend the executed
agreements between the City and ELHCDC to ensure that there is consistency between
the December 31, 2000 construction start date and the restrictions contained in the
agreements to safeguard the City's investment.
Resolution 3 - Transfer of SHIP Funds
The third resolution pertains to the de -obligation of 1996-97 SHIP funds in the amount of
$1 million for the Latin Quarter Specialty Center Project and to replace this allocation
with 2000-2001 SHIP funds.
Due to construction delays which have occurred on this affordable housing project, the
City has been cited by the State of Florida for being out of compliance relative to the
program guidelines regarding the timely expenditure of SHIP Program funds. Based on
the SHIP Program's definition for "expended funds", funds are not considered spent until
construction on the housing project is completed, and the housing units are sold and
occupied by the eligible families. The SHIP Program guidelines required that each year's
allocation of funding must be expended within two (2) years.
To address the concerns expressed by the State of Florida regarding the City's
expenditure of SHIP Program funds in a timely matter, at the September 28, 1999 City
Commission meeting, the Department of Community Development submitted legislation
for the City's revised Local Housing Assistance Plans for the periods covering fiscal
years 1995-1998 and 1998-2001 for consideration and approval. With the adoption of
Resolution No. 99-705, the City Commission approved the City's modified Local
Housing Assistance Plan, which has resulted in the expansion of the number of housing
assistance programs available to very low, low and moderate income families residing in
the City of Miami.
Two (2) of the new programs include the First -Time Homebuyers Financing Program and
the Single Family Rehabilitation Program. The First Time Homebuyer's Financing
Program provides down payment, mortgage buy down or closing cost assistance to
qualified very low, low and moderate income households, to assist in the purchase of a
newly constructed or existing residential properties within the corporate limits of the City.
The Single Family Rehabilitation Program provides rehabilitation assistance to very low,
low and moderate households that currently occupy and maintain their homes as their
principal residence. A maximum of up to $40,000 in financial assistance is available to
eligible households through both programs.
The de -obligated 1996-97 SHIP funds from the ELHCDC allocation for the Latin Quarter
Specialty Center will be used to address the increased demand for financial assistance
through the City's Single Family Rehabilitation and First Time Homebuyer's Programs.
Most importantly, these programs provide the City with a viable solution to satisfy the
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State of Florida's requirements regarding the timely expenditure of the 1996-97 SHIP
funding in question.
SHIP funds for 2000-2001 are available to replace the deobligated allocation to ELHCDC
for,. the Latin Quarter Specialty Center project and maintain the City's commitment to
ensuring the timely development of this important project in Little Havana.
It is recommended that the City Commission adopt the proposed three (3) resolutions
relating to the Latin Quarter Specialty Center to authorize the actions specified above.
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JFUGCW/DF
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