HomeMy WebLinkAboutR-00-0423J-00-386
5/10/00
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RESOLUTION NO.
0- 423
A RESOLUTION OF THE MIAMI CITY COMMISSION
RELATING TO THE PROPOSED NORTHWESTERN
ESTATES HOUSING PROJECT ("PROJECT") PLANNED
FOR DEVELOPMENT IN THE MODEL CITY
NEIGHBORHOOD BY THE URBAN LEAGUE OF GREATER
MIAMI, INC., AND LHL HOUSING CORPORATION
ALSO KNOWN AS LIBERTY HOUSING ASSOCIATES
("DEVELOPER"); AUTHORIZING AND DIRECTING THE
CITY- MANAGER TO DE -OBLIGATE $4,750,000 IN
HOME INVESTMENT PARTNERSHIP ("HOME") PROGRAM
FUNDS ALLOCATED TO THE URBAN LEAGUE OF
GREATER MIAMI, INC., PURSUANT TO RESOLUTION
NO. 95-853, IN CONNECTION WITH THE FINANCING
OF THE PROPOSED PROJECT; AUTHORIZING THE
CITY MANAGER TO ALLOCATE AND TRANSFER
APPROXIMATELY $3,100,000 IN AVAILABLE 1976
GENERAL OBLIGATION HOUSING. BOND FUNDS TO
REPLACE THE AFOREMENTIONED HOME PROGRAM
FUNDS ALLOCATED TO THE PROJECT, SUBJECT TO
APPROVAL OF BOND COUNSEL OR CITY ATTORNEY;
FURTHER AUTHORIZING AND DIRECTING THE CITY
MANAGER TO TRANSFER ALL INELIGIBLE HOME
PROGRAM COSTS ASSOCIATED WITH THE PROJECT TO
THE ABOVE REFERENCED HOUSING BOND FUNDING
SOURCE IN AN EFFORT TO CLOSE FINDING NO. 3
OF THE AUDIT REPORT ISSUED BY THE OFFICE OF
THE INSPECTOR GENERAL MARCH 26, 1998.
WHEREAS, pursuant to Resolution No. 95-853, adopted by the
City Commission on December 7, 1.995, the City Commission
allocated $4,750,000 in HOME Investment Partnership ("HOME")
Program funding to the Urban League of Greater Miami, Inc. and
LHL Housing Corporation also known as Liberty Housing Associates
("Developer"), for the development of the proposed Northwestern
Estates Housing Project, a 134 unit affordable homeownership
CITY COMMISSIox
MEETING or
MAY 1 1 2000
Resolution No.
7 61 1 r.
project, planned for development at Northwest 67th and 69th
Streets between Northwest 7th and 10th Avenues in the Model City
target area; and
WHEREAS, pursuant to the said Resolution, the City
Commission further directed the City Manager to make immediately
available to the Developer, $2,375,000 of the HOME funds for
Phase I of the Project, with the balance of the HOME funds to be
made available to the Developer for Phase II of the Project upon
the completion of Phase I; and
WHEREAS, Phase I of the Project consisted of the
acquisition of an eleven (11) acre project site, demolition of
the thirty-three (33) substandard structures on the site,
relocation of the ninety-six (96) tenants, and the commencement
of certain other predevelopment activities that were required to
commence construction of the Project resulting in the
expenditure of approximately $2,521,600 of the $4,750,000
allocated by the City; and
WHEREAS, the Department of Housing and Urban Development's
District Office of the Inspector General ("OIG"), in its Audit
Report dated March 26, 1998, issued a finding regarding the
City's allocation of $4,750,000 in HOME Program funds to the
project, which concluded that the proposed housing units were
not affordable for the prospective homebuyers, project funding
ri,I
Page 2 of 6 60+ 423
was insufficient to complete the project and as a result the
proposed affordable housing project was not feasible; and.
WHEREAS, Resolution No. 98-585, adopted on June 9, 1998,
authorized and directed the City Manager to provide written
notification to Liberty Housing Associates that the organization
would be given sixty (60) days to come into compliance with the
OIG audit; and
WHEREAS, Resolution No. 98-585, further authorized and
directed the City Manager and the City Attorney to take the
necessary steps to ensure compliance with the recommended
corrective actions regarding the Northwestern Estates Housing
Project stipulated by the OIG; including terminating the project
and recording the deed to the property should the developer fail
to comply within the time prescribed; and
WHEREAS, pursuant to Resolution No. 98-585, on
November 23, 1998, the City Attorney's Office effectuated the
recordation of the Statutory Warranty Deed in the Public Records
of Miami -Dade County; and
WHEREAS, in response to the OIG's finding and the City's
proposed corrective action plan, the City agreed in the event
the developer failed to comply with the provisions set forth in
Resolution No. 98-585, that a modified housing plan for the
proposed Northwestern Estates Housing Project would be submitted
for HUD's review and consideration, which include (1) the
Page 3 of 6
identification of a new developer, (2) a reconfiguration of the
project, (3) a revised financing plan, (4) assurance that the
project will be affordable for low and very low income families
and individuals, (5) develop a three (3) year schedule for the
completion of construction and occupancy of.the project; and
WHEREAS, Resolution No. 98-796, adopted July 21, 1998, the
City Commission designated and directed the Community
Redevelopment Agency (CRA) to prepare a housing plan within four
(4) months, in the event the developer failed to come into full
compliance with the OIG audit; and
WHEREAS, in response to the City's recordation of the
Statutory Warranty Deed, in December of 1998, Liberty Housing
Associates filed a lawsuit against the City; and
WHEREAS, with the outstanding legal issues relating to this
Project pending, it has become apparent that the City's ability
to successfully meet the timeframes identified in the City's
corrective action plan submitted to HUD to close the finding
relating to the Project is no longer viable; and
WHEREAS, in an effort to accomplish the objective of
closing the finding, the Administration recommends de -obligating
the $4,750,000 in HOME Program funds allocated to the Project,
and the reallocation of $3,100,000 in 1976 General Obligation
Housing Bond Funds; and
Page 4 of 6 e L��,
WHEREAS, it is further recommended that all ineligible HOME
Program cost associated with the Project is transferred to the
Housing Bond Fund to comply and clear -the HUD finding relating
to the Project;
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 amount of $4,750,000 in HOME Program
funds allocated to the Urban League of Greater Miami, Inc. for
the financing of the Northwestern Estates Housing Project
pursuant to Resolution No. 95-853, is hereby de -obligated.
Section 3. The City Manager is hereby authorized, and
directed to allocate approximately $3,100,000 in 1976 General
Obligation Housing Bond funds to replace the HOME Program funds
previously allocated to the Project, subject to approval of bond
counsel or the City Attorney.
Section 4. The City Manager is hereby authorized" and
directed to transfer all ineligible costs associated with the
project from the HOME Program to the 1976 General Obligation
�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.
'Z')
Page 5 of 6
.
Housing Bond Program in order to comply with and to clear the
HUD audit finding related to.the Project.
Section 5. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor./
PASSED AND ADOPTED this 11th day of May 2000.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2.36, Once the M }pr did not IM00 OR aPpmol of
this legislation by signing it in the designaled glace provided, bail F10101
becomes effective with the elapse of ten {iti) from the d �, o Cornmissi �;cwita�
regarding same, without the Mayor exerc' 'da°ng eto.
ATTEST: Walt® roan, Clty Clark
WALTER J. FOEMAN
CITY C:AS
K
APPRO 0 FORM AND CORRECTNESS:t-
i
ALE O VILARELLO
C A TORNEY
W4 3 a/- : 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
�{
Page 6 of 6
-
0 CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and Members of
Commission
FRnald H. Warshaw
City Manager
RECOMMENDATION:
• 12
DATE: IMAY — 2 2000- FILE:
SUBJECT : Resolution Relating to Northwestern
Estates Housing Project
REFERENCES: City Commission Meeting
ENCLOSURES: of May 11, 2000
It -is respectfully recommended that the City Commission adopt the attached resolution authorizing the
City Manager to de -obligate $4,750,000 in HOME Investment Partnership (HOME) Program funds
allocated to the Urban League of Greater Miami, Inc., and LHL Housing Corporation, also known as
Liberty Housing Associates ("Developer"), in connection with the financing of the proposed
Northwestern'Estates Housing Project.
The attached resolution further authorizes and directs the City Manager to reallocate and transfer
$3,100,000 in available 1976 General Obligation Housing Bond Program funds to replace the HOME
funds allocated to the Project. The attached resolution also authorizes and directs the City Manager to
transfer all ineligible HOME Program cost associated with the housing project to the Housing Bond
funding source in an effort to comply with the HUD audit and clear the finding relating to the
aforementioned housing project.
BACKGROUND:
In December 1995, through Resolution No. 95-853, the City Commission allocated $4,750,000 in
HOME Investment Partnership (HOME) Program funding to the Urban League of Greater Miami, Inc.
and LHL Housing Corporation, also known as Liberty Housing Associates, in connecting with the
financing of the proposed Northwestern Estates Housing Project. The developer, Liberty Housing
Associates, proposed to develop a 134 unit homeownership project on an eleven (11) acre site located
at Northwest 67`h and 69th Streets between Northwest 7th and 10th Avenues in the Model City
neighborhood.
Per Resolution No. 95-853, the City Commission directed the City Manager to make $2,375,000 of
HOME funds immediately available to the developer for undertaking Phase I of the Project. Activities
undertaken during Phase I included: acquisition of the project site, relocation of the ninety-six (96)
tenants, demolition of the thirty-three (33) substandard structures situated on the site, and the initiation
of certain predevelopment activities which included architectural and other zoning/platting activities
required by the City to commence construction on the Project. To date, approximately 2,521,600 of
the $4,750,000 in HOME funds allocated to the Project has been expended. Presently, the City is still
00m 423
required to make monthly relocation payments to the former tenants for another two (2) years. In total,
it is projected that approximately $3,100,000 in City funding will be needed to complete the remaining
activities associated with Phase I of the Project.
In March of 1998, the U.S. Department of Housing and Urban Development's District Office of the
Inspector General (OIG), in its Audit Report issued March 26, 1998, determined that the City of Miami
did not require the developer of the proposed housing project to demonstrate that the housing units
would be affordable to very low income families or require the developer to obtain adequate financing
to complete the construction of the project.
Subsequently one (1) acre of the project site was acquired by the Dade County School Board through
condemnation proceedings and the developer received approximately $144,538 in compensation from
the School Board. Since the project site was acquired with HOME funds, the $144,538 in proceeds
received by the developer represents program income and should have been returned to the City to be
deposited in the City's HOME Investment Trust Fund.
In an effort to resolve this finding, the OIG mandated that the City be required to take the following
actions:
1) Demonstrate how the proposed Northwestern Estates Housing Project can be made affordable
to very low and low income families by obtaining the necessary subsidies to make the units
affordable.
2) Provide evidence that the developer has obtained sufficient private financing to complete the
development of the proposed housing project.
3) Aggressively pursue the repayment of the $144,538 in program income received by the
developer as compensation from the Dade County School Board for the one (1) acre acquired
through the condemnation proceedings.
4) Discontinue any additional funding to the project, except for certain costs associated with
relocation payments to the former tenants and security.
5) Take other appropriate action, as needed, to protect the Secretary of the U.S. Department of
Housing and Urban Development's interest and the integrity of the HOME Program,
including the termination of the project.
At its meeting of June 9, 1998, the City Commission, through Resolution No. 98-585, authorized and
directed the City Manager to provide written notification to Liberty Housing Associates that the
organization would be given sixty (60) days to fully compliance with the OIG audit. Resolution
No.98-585, further authorized and directed the City Manager and the City Attorney to take the
necessary steps to ensure compliance with the recommended corrective actions regarding the
0
Northwestern Estates Housing Project stipulated by the OIG, including the termination of the project
and recording the deed to the property if the developer fails to comply within the time prescribed.
The City also advised HUD that a modified housing plan for the development of the project would be
submitted for its review and consideration if the developer failed to comply with the above mentioned
provisions. This plan includes:
1) Identification of a new developer.
2) A reconfiguration of the project.
3) A revised financing plan for the project.
4) Assurance that the project will be affordable for low and very low income families and
'individuals.
5) Development of a three (3) year schedule for the completion of construction and occupancy
of the project by 2001.
Due to the developer's failure to comply with the provisions set forth in Resolution No. 98-585, the
City Attorney's Office, on November 23, 1998, recorded the Statutory Warranty Deed in the Public
Records of Miami -Dade County, which technically vested title to the property in the name of the City.
In December of 1998, Liberty Housing Associates filed a lawsuit against the City in response to the
City's recordation of the deed. In March of 2000, the judge ruled in favor of the developer, which
restored ownership of the property to the developer. With the current legal issues relating to the
Project, it has become apparent that the City's ability to successfully develop the Project within the
timeframe identified in the City's corrective action plan submitted to HUD to clear the finding is no
longer viable.
In an effort to resolve and close the OIG funding related to the Northwestern Estates Housing Project,
the Administration recommends the de -obligation of the $4,750,000 in HOME Program funds
allocated to the Project per Resolution No. 95-853. It is further recommended that the City
Commission reallocate $3,100,000 in 1976 General Obligation Housing Bond Funds which are
available to replace the HOME Program funds. It is also recommended that all ineligible HOME
Program costs associated with the Project be transferred to the Housing Bond Fund in order to close
the HUD finding related to the Project.
City Commission adoption of the attached resolution is recommended.
JFL/GCW/JBH
Enclosure
3
6- 423
ai- 30-96 TUE i T
J-95-1042
12/07/95
RESOLUTION NO? 5 - 8 5 3
A R=OLVTIOM RESCINDING IN ITS 8ftIRETY
RESOLUTION NO. 95-648, ADOPTED SRPTMMBR 14,
19953 REAPPIRMING- MM ACCEPTANC 8 01F THE
SNVIRONMEN'TAL STUDY PURSUANT TO MOTION NO.
95-699 ADOPTED SEPTEMBER 28, 19953
AUTWRIZING THE CITY MANAGER TO IMCUTZ ALL
NECESSARY DOCUKMaS, IN A FORK ACMPTABLB TO
THE CITY ATTORNEY, RRLATIM TO THE
DBVSLOPMSNT OF A 134 -MUT AFPdRWMLR
HOl4SOi►fNBRSHIP HOUSIM PROMr, TO 86 MOi N AS
9 MICIHT MANOR HCMS PROJECT", , P1J M8D - FOR
DML.OPMT BY THE JOINT VBM'TURB OF THS: URBAN
L MOM OF GREATER MIAMI, INC., AND 'UM
HOUSXM AM DHVBIOPMBN'T, INC., ON AN *LEVZN
( 11) ACRE PARCEL LOCATED IN THN MODEL CITY
NBiCmR$OOD, AT NORTHWEST 67Th AND 6912
STREET$ BETWEEN NORTHMBST 7T8 AND 10T9
AVMMES, MIAMI, FLORIDA, AUTSORIZIM TER CITY
M111 =R TO ALLOCATE MM DISBURSE Pt1tZOM FROM
TBS CITY'S HOME INVESTMENT PARTIOURIP
eeM_o�tae w av aarntt►rr vow Tn ��� ear► AAS
To M ' LRWUg TO D13MY TR- COM
ASSOCIATED NI'I'H TES PRFMCVBLOPM60IT ACTIVITI88.
IN COh1N=IOK WITH SAID DSVZW MSNT,
AOT80RIZING THE CITY HAMAGER TO ALLOC ATS AND
DISBURSE BLI WIM TO TUB URBAN LE&MRs IN THE
MOANER PRBSCRI22D BY TAR CZW f 8 NCNB
ZN"SMGW PARTNERSHIP PROGRAM, FM PROJECT
DN"LOP14MT AND C014MRUMON OClS'I'S IN An
AMOUNT Mr TO BXCHBD ;4, 750, 000, OF IRIC K
68,375,000 WILL 88 MAD9 AVAILASLB iMMBDIATBLY
TO TRE URBRN LEAGUE FOR PAA88 I OF VM
DUVELOPMENT, AND THB REMAINING 42,375,000 TO
HB DADS AVAILABLE FOR Pte! ZE "TuR 'jTKS .
COMPLETION OF PRUE I.
P ®a
Ej
WHIMEAS, a severe shortage of housing within the
affordability range of families wild individuals of low and
moderate income exists in the City of Miami; and
CM cosoasuot?
NEEYtMb OF
OEC 0 7 M5
1l�l�llm Na
u0— 440
:qN-30-96
TUE 1T:0
P.03
Wasp8A9, the City commission recognizes that participation
of both the polic and private sector is necessary to foster the
development of housing affordable to low and moderate income
families and individuals in the Cityi and
WHERRAS, in May, 1995, LUL Housing and Development, Inc.,
c
and the Urban League of theater Miami, Inc.; (the "Joint
Venturew) submitted a formal application to the City of Kiami for
funding in the amount of $4,750,000 to be provided 1n the form of
a grant, in connection with the development of a 114 -unit
affordable housing project on a -site located at Northwest 67th
and 69th Streets, Miami,.Floridal and
wmRSAS, after several meetings With representatives. of the
Joint Venture. the City Administration expressed concerns
relative to a portion of the development site perhaps being
contaminated with ha5ardous or toxic materials as a result of . a
dry cleaning business which had operated near NortXwest ?tb
Avenue between Northwest 67th and 69th Streets, Riami, Floridal
MKSttaA.g, in an etfort to address the aforementioned concern,
" the City Commission reeownnded,that the Joint Venture carry out
a study addressing the City'a concern rmalative to the
environmental status of the site; and
wRggr-A9, pursuant Co Nation No. 95-699, adopted September
28, 1995, the City Commission accepted the environmental report
provide® by the Joint Venture indicating that the development
site is clear for development i and
WHBR$AS, in pa effort to move the development of the
aforementioned housing project forward, the City Administration
Q:.
-42S
�..�. _vp .— .+. ava,. v. �. ��. a.•� wT .+v r. .ry �. v v. r v� r. vv. m vv.. 'i`wv �. IIl.l�
a04 -?50-96 TUE is :.0 P. 04
• r
recommends the provision of *S0,600 freut city SOME program funds
to the Urban League to defray the, cost of prodevelopment
activities in connection with the proposed housing projects and
WHZ BAS, the City Administration further recommends
providing an allocation to the Urban League for project
.c
development and construction funding, in an amount not to exceed
$4,750,000, from the City's Rove InvestvAmt partnership program
and/or the cowtunity Development Block Grant program;
NOW# THBRBFORS, BE IT RRSOLYBD BY THR COMISSION OF 7wa CITY
OP MIAMI, FLOORIDA
Section 3. The recitals and findings contained in the
Preamble to this Resolution ere hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
section 2. Resolution go. 95-648, adopted September 14,
1995, is hereby rescinded in its entirety.
Sect;on 3. The acceptance of the environmental study,
pursuant to Motion No. 95-699, adopted September 26, 1995, is
hereby reaffirmed.
Section 4. The City Manager is hereby authorized to
allocate and disburae funding from the City's Acme rnvestment
Partnership Program, its an amount not to exceed $50,000, to the
t
Urban League of Greater Miami, Inc., to defray the costs
associate* with the environmental study and predevelopm+ent
activities in connection' with the development of the prmpoaed
Knight Manor Someg Project planned for the development of a
134 -unit affordable homeownership housing project on an eleven
® 423-
_.
acre parcel located at Northwest 67th and 69th Streets between
7th and loth Avenues, Miami, Florida, in the Model City
Neighborhood (the *Project*).
Section 5. The City Manager is hereby further authorized
to allocate and disburse funding, in the manner prescribed by the
City's dome investment Partnership Program, to the Urban League,
in an amount not to exceed $4,7S0,004, of which $2,375,000 for
Phase I of the Project will be tuade immediately available in vier
of the environmental study accepted by the Commission on
September 28, 1999, indicating that the development site is clear
for construction, with the remaining $2,375,000 to be made
available upon successful cotspletion of Phase X of the subject
Project.
Section 6. The City Manager is hereby authorized' to
execute the necessary documents, in forma acceptable to the City
Attorney, to implement said Project.
Section 7. This Resolution shall become effective
immediately upon its adoption.
PASSED AND AMPTOD this 2th day of pecemher, 3.99S.
STB P. CLARS, MAYOR
ATTEST
i •C
WAL J. OgMAN, Y
'
TM herein sutt dation is Antha wbjed to Compikocc with all regdiemmau that may be i epomd by the City
Attorney. indwOng M not limkgd to diose pcescnWby applicable City Chatter and Code pmldoaa.
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�` 423
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PRBPARSD AND APPROVSD BY:
MRSOPi
ASSIStA$T CITY ATTO
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APPROVSD AS TO FORM AM CORRSCrNBSS :
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J-98-569
05./17/98 RESOLUTION NO. 9 8- 5 8 5
A RESOLUTION AUTHORIZING AND DIRECTING. THE
CITY MANAGER TO PROVIDE WRITTEN NOTIFICATION
TO LIBERTY HOUSING ASSOCIATES AS THE DEVELOPER
OF THE PROPOSED 134 -UNIT HOUSING PROJECT KNOWN
AS NORTHWESTERN ESTATES, THAT IT HAS SIXTY
(60) DAYS TO COMPLY WITH THE RECOMMENDATIONS
IDENTIFIED BY THE U.S. DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT'S DISTRICT OFFICE OF THE
INSPECTOR GENERAL IN ITS AUDIT REPORT DATED
MARCH 26, 1998.AS SPECIFIED HEREIN;
AUTHORIZING AND DIRECTING THE CITY MANAGER TO
DISCONTINUE ALL FUNDING FOR THE PROJECT,
EXCEPT FOR RELOCATION AND SECURITY UNTIL SUCH
TIME AS THE DEVELOPER COMPLIES WITH SAID
RECOMMENDATIONS; FURTHER AUTHORIZING AND
DIRECTING THE CITY MANAGER AND THE CITY •.�
ATTORNEY TO TAKE WHATEVER STEPS ARE NECESSARY
TO ENSURE COMPLIANCE WITH SAID
RECOMMENDATIONS, INCLUDING TERMINATING THE
PROJECT AND RECORDING THE DEED TO THE
PROPERTY, SHOULD THE DEVELOPER FAIL TO COMPLY-
r.TTTUTM TVP TTME PRESCRIBED.
WHEREAS, pursuant to Resolution No. 95-853, passed and
adopted by the~ Ci_ty~`Commission on Decembar 7, 1995, the City
Commission allocated $4,750,000.00 in HOME Investment Partnership
(""HOME") .Pro, -gram, funding (""HOME Funds") to the Urban League of
Greater Miami;t'Inc. and LHL Housing Corporation as a partnership
known as 'Liberty Housing Associates ("Developer"), for the
development of a 134 -unit affordable homeownership project,
planned for development at Northwest 67th and 69th Streets between
Northwest 7th and 10th Avenues in the Model City target area,
commonly known as Northwestern Estates ("Project"); and
CITY COMMSION
MEETING OF
JUN 0 9 1998
Resolution Iia.
42"
WHEREAS, pursuant to said Resolution, the City. Commission
further directed the City Manager to make immediately available
to the Developer $2,375,000.00 of the HOME Funds for Phase I of
the Project, with the balance of the HOME Funds to be made
available to the Developer for Phase II of the Project upon the
completion of Phase I; and
WHEREAS, Phase I of the Project consisted of the
acquisition of an eleven acre site upon which the Project is to
be developed ("Site"), demolition of the then existing 235
substandard units situated on the site, relocation of the ninety-
six (96) tenants and the commencement of certain other pre -
development activities that were required to commence
construction of the Project; and
WHEREAS, to date, approximately $2,201,638.00 of the
$2,375,00.0.00 which were allocated for Phase I have been
expended, to include (a) $442,000.00 for Developer's Fees,
General Overhead and Administration, (b) $725,000.00 for Site
acquisition, (c) $426,098.00 for Tenant Relocation, (d)
$362,447.00 for Site work (including demolition and clearing) and
(e) $246,092.00 for Soft, Costs (including legal, architectural
and engineering fees); and
WHEREAS, after the Developer's acquisition of the Site,
the Dade County School Board condemned one (1) acre of the Site
for which the Developer received approximately $144,538.00 in
compensation ("Compensation"); and
2
401,
6.0` Via`
WHEREAS, since the Site was acquired with the HOME Funds,
the said Compensation represents program income and pursuant to
the Federal Register Final Rule Part 92.503 (a)(1) is required to
be remitted by the Developer to the City for deposit in the
City's HOME Investment Trust Fund; and
WHEREAS, on February 15, 1996 -the City and the Developer
executed the "Covenant Not To Encumber Or Convey And To Deed
Property To The City Of Miami Upon Failure To Commence
Construction Within Time Stipulated Herein", whereby the City
agreed to make disbursements of the HOME funds on the condition
that the construction of the Project commence within twelve.112)
months from the date of the Covenant, otherwise the City could
record the Statutory Warranty Deed, dated February 15, 1996 and
executed by the Developer conveying title to the Property to the
City ("Deed"); and
WHEREAS, the Developer has not commenced construction of
the Project; and
WHEREAS, the U.S. Department of Housing and Urban
Development's District Office of the Inspector General ("OIG") in
its Audit Report dated March 26, 1998, issued a finding regarding
the allocation of the $4,750,000.00 in HOME Funds to the Project,
which concluded that the Project was not feasible; and
WHEREAS, the OIG also stated that the City did not execute
its right to record the Deed; and
FA
3.
423
WHEREAS, the OIG has recommended that the City be required
to: (a) demonstrate how the Project can be made affordable to low
and very low income families and individuals by obtaining
sufficient subsidies, reconfiguring the Project, or otherwise
reducing the costs; (b) provide evidence that the Developer has
obtained sufficient financing to complete development of the
Project; (c) reimburse $144,538.00 of program income to the
City's HOME Investment Trust Fund; (d) discontinue funding to
Project, except for necessary costs such as relocation and
security until the City complies with the aforementioned
recommendations; and (e) the City should take other approprifte
action, as needed, to protect the U.S. HUD Secretary's interest
and the integrity of the HOME Program, including terminating the
Project;
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 authorized and
directed to give written notification to Liberty Housing
Associates as the developer 'of the proposed 134 -unit housing
project known as Northwestern Estates, that it will be afforded
sixty (60) days from the date of this Resolution to: (a)
4 )
reimburse the City the $144,538.00 in program income, (b)
demonstrate how the Project will be made affordable to very low
and low-income families and individuals by obtaining sufficient
subsidies, reconfiguring the project or reducing the Project's
cost, and (c) provide evidence that sufficient private financing
has been obtained to complete the development of the Project.
Section 3. Should Liberty Housing Associates fail to
comply with any of the provisions set forth in Section 2 within
the time prescribed, the City Manager and the City Attorney are
hereby authorized and directed to take whatever steps are
necessary to ensure the City's compliance with &e
recommendations of the U.S. Department of Housing and Urban
Development's District Office of the Inspector General as stated
in its Audit Report dated March 26, 1998, incivaing, DUL no
limited to terminating the Project and recording the Statutory
Warranty Deed conveying title to the Property to the City.
Section 4. The City Manager is hereby further authorized
and directed to discontinue all funding to the Project, except
for any costs associated with relocation payments and security
for the Site, -until such time as the Developer complies with the
recommendations of the OIG as stated in Section 2 hereof.
Section 5. This Resolution shall become effective
immediately upon its adoption.
5
•
PASSED AND ADOPTED this
9
9th day of June
, 1998.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2-36, since the Mayor did not ineic2`n approval of
this legion by signing it in the designated place proviCeO, :=.iC lao:51atil-r:
becomes effective with the elapse of ten (10) da,'m fr. the date of Ccr
ATTEST • regwcbV same° v tut the Mayor exercising a ,
WALTER J. FOEMAN, CITY CLERK
DEPARTMENT OF COMMUNITY DEVELOPMENT
REViN AND P 0 AL:
J
tom----
GWENDOLYN. WARREN; DIRECTOR
DEPARTMENT',OF COMMUNITY DEVELOPMENT
J
PREPARED AND APPROVED BY:
LIIMA KELLY SO
ASSISTANT CITY ATT RNEY
6
PUBLIC NOTICE FOR
SPECIAL CITY COMMISSION MEETING
REGARDING
COMMUNITY DEVELOPMENT ISSUES
4- "N
*i 11//// //►TL/*'
The Miami City Commission will hold a Special Meeting to discuss issues relating to Community
Development. The Special Meeting will be held:
Thursday, May 11, 2000 at 2:00 P.M.
City of Miami Commission Chamber
3500 Pan American Drive
Miami, Florida 33133
The Agenda for the Special Meeting is as follows:
1. Discussion on Funding History of the City of Miami Community Development Block Grant
(CDBG) Program for the 19th — 25th Program Years
2. Discussion and proposed resolution to revise the Citizen Participation Plan, including the
abolishment of the Citywide Advisory Board
3. Discussion and proposed resolution on Planning Calendar for 26th Year CDBG activities
4. Presentation on Orchard Villas Model City Revitalization Project, including proposed legislation
to adopt the plan in principle and allocating $100,000 of HOME funds to engage R.J. Heisenbottle
Architects, P.A to develop a Master Plan for the area; allocating $1.5 million of 1999 HOME
funds and $1.5 million of future 2000 HOME funds to develop affordable housing in the Model
City Home Ownership Zone; and supporting the Miami -Dade County application to U.S. HUD for
HOPE VI funding to redevelop the Liberty Square and Liberty Homes Public Housing Projects
Proposed resolution to modify Housing Loan Committee Membership by eliminating the seat
previously held by Miami Capital Development Corporation and replacing it with a representative
with private real estate lending experience; expanding the choice of City Departments from which
the City Manager can appoint the Administration's representatives; and appointing Frank
Rollason, Director, City of Miami Building Department, to fill the vacancy created by the
retirement of Jim Kay, former Director of the City of Miami Public Works Department
6. Resolution proposing the reestablishment of a Commercial Loan Program to revitalize commercial
corridors in the City of Miami Revitalization Districts; allocating $150,000 of CDBG funds to the
Latin Chamber of Commerce to administer the program in the southern portion of the City and
$150,000 of CDBG funds to the Little Haiti Credit Union to administer the program in the
northern area of the City and designating the City of Miami Department of Real Estate and
Economic Development to administer the program in the central area of the City
7. Discussion and proposed resolution to establish a concept for an enhanced Commercial
Revitalization Program
6,0 23
8. Discussion and proposed resolution to maintain the annual funding commitment of $225,000 -for a
five year period to the Little Haiti Job Creation Project to create jobs and stimulate businesses in
the Edison Little River area
9. Discussion and proposed resolution allocating $262,322 of HOME funds to the CRA to establish a
homebuyer's pre -qualification program in the Southeast Overtown/Community Redevelopment
area
10. Discussion and proposed resolution to replace $504,450 of SHIP funds with available HOME
funds for related construction expenses for the the Allapattah Business Development Authority to
develop the Ralph's Plaza Townhomes - Phase I project
11. Discussion and proposed resolution to deobligate $853,727 of 1996-97 and 1997-98 SHIP funds
as follows and to reprogram said amount to fund the City of Miami Single Family rehabilitation
and First Time Homebuyers' Financing Programs:
Organization and Project
Amount
BAME Development Corporation of South' Florida -New Hope/Overtown $100,000
Housing Project
Jubilee Community Development Corporation - Jubilee Villas Housing Project 62,500
Model Housing Corporation - Villas Dr. Godoy Housing Project 62,500
DEEDCO, Inc. - Miami River Village Housing Project 100,000
St. John Community Development Corporation - Lyric Village Housing Project 114,150
Florida Housing Cooperative - Barcelona Place 414,577
Total Deobligation $853,727
12. Discussion and proposed resolution to deobligate $4.75 million of HOME funds allocated to the
Urban League and LHL Housing Corporation to develop the Northwestern Estates Housing
Project and reallocating $3.1 from available 1976 General Obligation Housing Bond Program
funds to said project for the purpose of resolving the finding identified in the Audit Report issued
March 26, 1998 by the Office of the Inspector General
13. Discussion and proposed resolution allocating $3,587,693 of available HOPWA Funds as follows:
Organization and Project Amount
Economic Opportunity Family Health Center - Long Term Housing $1,742,900
Miami -Dade Housing Agency - Long Tenn Housing 1,844,793
Total $3,587,693
14. Discussion and proposed resolution restructuring the HOPWA Program
15. Discussion and proposed resolution allocating $50,000 to the accounting firm of Sharpton,
Brunson and Company to perform an audit and provide technical assistance on the HOPWA
Program
16. Discussion on letter from U.S. HUD citing the City of Miami for not being in compliance with
HUD standards in the expenditure of funds in its CDBG Line of Credit balances
17. Discussion and proposed resolution to fund previously authorized legislative commitments
approved by the City Commission to the Community Redevelopment Agency (CRA) as follows:
Project Authorizing Legislation Amount
Historic Overtown Priority Business Corridor Resolution 98-592 $3,000,000
CRA/SEOPW Interlocal Agreement Commitment Ordinance 11736 2,000,000
Proposed funding sources for the above allocations to meet CRA funding commitments:
Project
Amount
Funding Source
Historic Overtown Priority Business Corridor
$3,000,000
Reprogramming of
previously approved
funds for CIP
Projects
CRA/SEOPW Interlocal Agreement Commitment
$1,000,000
HOPWA FUNDS
CRA/SEOPW Interlocal Agreement Commitment
$1,000,000
Reprogramming of
previously approved
funds for CIP
Projects
Note: Said reprogramming of previously authorized CDBG funds to come from among the
following CIP projects that are not in a position to be completed by September 30, 2000 as
determined by the Assistant City Manager for Operations:
African Square Park Improvements
African Square Park Land Acquisition
Allapattah Comstock Park
Armbrister Park Building Renovations
Athalie Range Park
Athalie Range Park Playground Lighting
Belafonte Park Improvement
Charles Hadley Park Renovations
Coconut Grove Minipark Renovation
Curtis Park Improvements
Dorsey Park Site Improvements
Eaton Park Improvements
Henderson Park Improvements
Replacement
Jose Marti Park
Lemon City Day Care Park
Little Havana Softball Field
Merrie Christmas Park Handicap Access
Miller Dawkins Park Renovations
Moore Park Field Renovations
Moore Park Renovations
North Bay Vista Playground
Reeves Park
Riverside Park Playground
Shenandoah Park Improvements
Target Area Park Improvements
Virrick Park Improvements
West Buena Vista Park Renovations
Williams Park Improvements
Allapattah Sidewalk Replacement
Coconut Grove Sidewalk Replacement
Downtown Sidewalk Replacement
Edison Little River Sidewalk
Little Havana Sidewalk Replacement
Manuel Artime Community Center
Model City Sidewalk Replacement
Overtown Sidewalk Replacement
Tower Theatre
Wynwood Sidewalk Replacement
The proposed resolution also recommits $1.5 million of CDBG funds to previously approved CIP
projects that can be completed by September 30, 3000 in accordance with the prioritization of
previously approved CIP projects by the Assistant City Manager responsible for Operations and
approval of the Department of Community Development.
The proposed resolution also allocates $200,000 to the City of Miami Building Department for
demolition activities to be carried out through September 30, 2000, from the reprogramming of
previously authorized funds for Capital Improvement Projects
18. Discussion and legislation deobligating $500,000 of previously committed CDBG funds and
$500,000 of previously committed HOME funds to the St. John Community Development
Corporation for development of the Lyric Village Housing Project
19. Discussion and legislation regarding the Performing Arts/First Source Hiring Agreement
i
Interested individuals are encouraged to attend this Special Meeting. The meeting site is accessible to the
handicapped.
ELI