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Home My WebLink AboutR-00-07570 0 J-00-789 9/13/00 _ 7 RESOLUTION NO. A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENTS, APPROVING THE ACQUISITION OF FIVE (5) PROPERTIES LOCATED WITHIN THE CITY'S MODEL CITY HOMEOWNERSHIP ZONE, LEGALLY DESCRIBED IN "EXHIBIT A', BY ACQUIRING THE PROPERTY OR PURCHASING THE FIRST MORTGAGE INTEREST FROM A CONSORTIUM OF FINANCIAL INSTITUTIONS; AUTHORIZING THE ALLOCATION OF HOME INVESTMENT' PARTNERSHIP PROGRAM ("HOME") FUNDS IN THE AMOUNT OF $103,000., FOR SAID PURPOSE, AND AUTHORIZING THE ALLOCATION OF HOME FUNDS, IN THE AMOUNT NOT TO EXCEED $80,000, TO SATISFY PAST DUE REAL ESTATE TAXES AND ANY OTHER LEGAL AND RECORDING COSTS ASSOCIATED WITH THE SAID ACQUISITION; AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY TO TAKE ALL APPROPRIATE LEGAL ACTION REQUIRED TO COMPLETE THE ACQUISITION OF- THE PROPERTY OR THE FIRST MORTGAGE LIEN POSITION FROM THE CONSORTIUM; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO CONSUMMATE THE TRANSACTION. WHEREAS, the City of Miami holds a second mortgage on certain multifamily apartment buildings owned by Miami Limited II legally described in "Exhibit A" and located at the addresses listed below ("Property"); and Cry 41 7 b^71��`�`�, CM C4 MEETING OF, SEP 1 If 2000 Resolution Nis, n 1501 Northwest 59th Street 1270 Northwest 60th Street 1320 Northwest 61St Street 1321 Northwest 61St Street 1370 Northwest 61St Street WHEREAS, a consortium of four (4) financial institutions, which includes Eastern National Bank, Commercebank, N.. A., Hamilton Bank and International Finance Bank ("Consortium"), holds the first mortgage on the Property having an outstanding principal balance of $1,838,436 and outstanding interest of $324,691; and WHEREAS, in August 1987, the City of Miami made a second mortgage loan of $1,935,000 in Community Development Block Grant (CDBG) program funds to Miami Limited II for the rehabilitation of the Property; and WHEREAS, the Consortium has declared Miami Limited II to be in default on its first mortgage loan and has commenced a foreclosure action that would extinguish the City's second mortgage; and WHEREAS, the Property is located in the City's designated Model City Revitalization District, and the City's acquisition of the Property will play an integral part in the City's Comprehensive Neighborhood Revitalization Strategy for the Model City Homeownership Zone; and Page 2 of 5 WHEREAS, the City has an opportunity to acquire the Property by: (a) purchasing it from the Consortium; or, (b) acquiring the Consortium's first mortgage position in the foreclosure action; and WHEREAS, the Consortium has offered to sell to the City its first mortgage loan interest in the Property for $103,000; and WHEREAS, 1999 real estate taxes on the Property are due and outstanding in the amount of approximately $59,311 as of July, 2000; 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. " Section 2. The acquisition of five (5) properties located within the City's Model City Homeownership Zone, legally described in "Exhibit A," by acquirinq the Property or purchasing the first mortgage interest from a Consortium of financial institutions, including Eastern National Bank, Commercebank, N.A., Hamilton Bank and International Finance Bank is approved. Page 3 of 5 Section 3. The allocation of HOME Investment Partnership Program ("HOME") funds in the amount of $103,000, for said purpose is authorized, and the allocation of HOME funds, in the amount not to exceed $80,000, to satisfy past due real estate taxes and any other legal and recording costs associated with the said acquisition is authorized. Section 4. The City.Manager and the"City Attorney are authorized to take all appropriate legal actionrequired to complete the acquisition of the Property or the first mortgage lien position from the Consortium. Section 5. The City Manager is authorized!' to execute all necessary documents, in a form acceptable to the City Attorney, to consummate the transaction. Section 6. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2/ 1� 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/ 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 PASSED AND ADOPTED this _14th day of - September —1 2000. JOE CAROLLO, MAYOR In accordance with Miami Code Sac, 2-36, since the Mayor did not indicate apprf-1 of this legislation by signing it in the c« sigriazed , ac provided, said leg' -z':-" ".1 days v; becomes effective Min t�o elap 104 Of tp rT (101 da f Ilia (�a T -n _;,31 C: regarding same, without th'a M or Zercving)a t . --;I, ATTEST: �Water WALTER J. FOEMAN CITY CLERK APPROYJe_4s9 TO FORM AND CORRECTNESS.V -lop, .401 AVLANDRO VILARELLO .TY ,TY ATTORNEY W4673:BSS Page 5 of 5 07 "EXHIBIT A" ADDRESS: LEGAL DESCRIPTION: FOLIO NUMBER: 1501 Northwest 59th Lots 19 & 20, Block Street 13, Orange Heights, according to the Plat as recorded in Plat Book 14, at Page 62, of the Public Records of Dade County, Florida. 1270 Northwest 60th Lots 4 & 5, Block 6, Street of Orchard Villa Extension, according to the Plat as recorded in Plat Book 17, at Page 55 of the Public Records of Dade County, Florida. 1320 Northwest 61St Lots 6 to 9 Inc., Street Block 4, of Orchard Villa Extension, according to Plat as recorded in Plat Book 17, at Page 55 of the Public Records of Dade County, Florida. Page 1 of 2 01-3114-035-2430 01-3114-043-0970 01-3114-043-0690 U � 57 0 T T)T)D V C C . 1321 Northwest 61St Street 1370 Northwest 61St Street W4673 Attach • LEGAL DESCRIPTION: FOLIO NUMBER: Lots 29 & 30, Block 01-3114-043-0160 1, of Orchard Villa Extension, according to the Plat as recorded in Plat Book 17, at Page 55 of the Public Records of Dade County, Florida. Lots 3 through 5 01-3114-043-0660 Inc., Block 4, of Orchard Villa Extension, according to the Plat as recorded in Plat Book 17, at Page 55 of the Public Records I of Dade County, Florida. Page 2 of 2 0 0 — 1` 0 7 CITY OF MIAMI, FLORIDA 9 INTER -OFFICE MEMORANDUM The Honorable Mayor and Members AUG 2 9 2000 TO : of the City Commission DATE : FILE SUBJECT Resolution Ratifying, Approving And Confirming City Manager's Action to Acquire Miami Limited II Housing Project FROM: REFERENCES: Car s imenez City Manager ENCLOSURES: City Commission Meeting of September 14, 2000 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution, by a 4/51"—S affirmative vote, ratifying, approving and confirming the City Manager's action to allocate $103,000 to acquire or purchase the first mortgage interest held by a consortium of four (4) banks on properties included in the Miami Limited II Housing Project, consisting of five (5) multifamily apartment buildings located in the Model City Homeownership Zone. The attached resolution further authorizes and directs the City Manager to allocate an amount not to exceed $80,000 to satisfy past due real estate taxes for 1999 and other legal and recordation fees associated with the acquisition of the subject properties. Funds are available from the Home Investment Partnership (HOME) Program for these purposes. The attached resolution further authorizes and directs the City Manager and the City Attorney to take the appropriate legal steps required to complete the acquisition of the subject multifamily properties. BACKGROUND: At the September 28, 1999 City Commission meeting, the City Commission adopted Resolution No. 99-712 that authorized and directed the City Manager to take the necessary action to initiate and assist in the immediate relocation of the 109 residents residing in the five (5) Miami Limited II Section 8 apartment buildings. Presently, the following multifamily buildings listed below are vacant, abandoned and are a health and safety hazard to the residents in the Model City neighborhood: 1501 N.W. 59th Street 1270 N.W. 60th Street 1320 N.W. 61St Street 1321 N.W. 61" Street 13 70 N.W. 61 St Street The Honorable Mayor and Members of the City Commission Page 2 In May 2000, preliminary discussions were held by the City Attorney's Office,. Department of Community Development, and legal counsel representing a consortium of banks, which include Eastern National Bank, Commerce Bank,, N.A., Hamilton Bank and International Finance Bank, regarding the current condition and future of the aforementioned multifamily apartment buildings. On June 26, 2000, a written offer was made by the City to purchase the first mortgage position held by Eastern National Bank and the other lenders on the subject property for $103,000. In response to the City's offer, Eastern National Bank and the other lenders agreed to assign the first mortgage held on those properties and transfer their interest in the properties to the City. In addition, as of July, 2000 there is approximately $59,311 in outstanding 1999 real estate taxes due on these properties. Due to the urgent need to take immediate action, it was determined that it was advantageous and necessary for the City Manager to .authorize HOME funds to be used to complete the purchase and protect the City's interest in the aforementioned properties. . In July 1998, with the adoption of Resolution No. 98-800, the City Commission approved the establishment of a homeownership zone in the area bounded by Northwest 58th and 62nd Streets between Northwest 12th and 17th Avenues in the Model City neighborhood. It is the City's goal to aggressively develop approximately 300-350 new homeownership units over the next five: (5) years where these properties are situated. Acquisition of the subject multifamily properties by the City represents significant step to create new homeownership opportunities for residents in the Model city neighborhood. The attached resolution ratifies, approves and confirms the City Manager's action authorizing the acquisition of the subject multifamily properties prior to City Commission approval in order to eliminate five (5) substandard and abandoned buildings that threaten the health, safety and welfare of residents. of the Model City neighborhood. It is further recommended that the City Commission adopt the proposed resolution that allocates $183,000 of HOME funds to cover the cost of acquisition, .past due real estate taxes and other related costs for the previously identified Miami Limited II site. GCI/G /JBH 00m 757 .... .... . .. NATIOWAL NEWS i Jim Morin is The Herald's top drawer. Don't miss his editorial cartoon, five times a, week on the Editorial page. NOTICE: OF PUBLIC HEARING RELATING TO...PRANTS ADMINISTERED BY THE go# to, I DEPARTMENT OF COMMUNITY. Mof.. DEVELOPMENT ISSUES:. The Miami City Commission will hold a Public Hearing September 14, 2000 to discuss the following issues relating to grants administered by the Department of Community Development: I. Discussion and proposed resolution on transfer of $300,000 of FY 1998 HOPWA funds previously allocated to theNiami-Dade CountyDepartment of Human Services, Office of Community Services, to other HOPWA contracts between the ity and the Miami -Dade County Department of Human Services, Office of Community Services to assist low income persons living with HIV/AIDS as follows: Frorfi Contract Amount 1 To: Contract Amount Utility �Assistance $300,000 Short Term Housing Assistance $200,000 Housing Assistance* $100,000 Total $360,000 Total $300,000.- DhAsion and proposed -resolution to allocate I funds to the following orgMizations to provide housing assistance ar#housing related services to low income persons living with HIV/AIDS throughout Miami -Dade County. _,- 9FIACE PROVIDER ACTIVITY AMOQtJI_; -*tler Way of Miami, Inc. Operations $ 58066 Of Miami Department of Operations $1,000 000 ommunity Development _Douglas Gardens Community Long -Term Housing Assistance $ 200,000 Health Center, I Economic Opportunity Family, Long -Term Housing Assistii;ce $1,200,000*::'-"' .-HealthCenter,-Inc:----... ,.Greater Bethel A.M.E. Church HIV/AIDS Counseling. 77 . Referral Services: Lock Towns Community mental Operations — Life Quest F& 11 :7 :25,000"'.". Health Center, Inc -Term Housing Assistance 500i Miami-Da.de County Department of . Short si". 006 Human SeriAces (Office Department Community Services) Miami -Dade County Department of Emergency Housing Assistance $ • Human SerAces (Office of Community Services) Miami -Dade Housing Agency - I � * . Long -Term Housing Assistance $5,400,000 Shelbourne Apartments Building, Inc. Operations $ 45,000 South Florida Jail Ministries; Inc. Operations — AGAPE's Women $ 87,000 CenterNision House TC $9,97 '000 Discuss ' resolution allocating $150,000 of CDBG funds to the. Tacolcy Economic Development -s cc on, Inc. to administer the Commercial Loan Program. Discussion and proposed resolution ratifying the City Manager's action to allocate $300,000 Of '.Community Development Block Grand Funds to purchase tax deeds,, satisfy. prior year real estate tax6a'..dnd take appropriate legal action to complete the acquisition of the following four (4) multi -family apartmerit; buildings located in the Model City and Overtown neighborhoods, previously owned by Miami Limited I and acquit by the City:. 1230 N.W. 58 Street 1240 N.W. 59 Street 5899 N.W. 17 Avenue 1636 N.W. 58 Terrace HOME Discussion and proposed resolution ratifying the City Manger's action to expend $138 Investment Partnership '(HOME) Funds to satisfy prior year real estate'taxes for 19.98 a on the following eight ( ighborhood: Putti -family apartment buildings located inthe Model City iio 1435 N.W. 61 Street 1455 N.W. 61 Street 1475 N.W. 61 Street 1606 N.W. 58 Terrace 1227 N.W. 58 Street 1101 N.W. 62 Street 1535 N.W. 58 Terrace 1611 NX 3 Avenue 6. Disqwssion and proposed resolution changing the number of units to be built, from 19 to 15, in the previously approved Biscayne East Towers Project to be constructed by Banyan Townhomes, L.L.C, using $342,000 of ,,previously approved SHIP funds; further authorizing the City Manager to execute a subordination.agreement between the City and the Local Initiative Support Corporation in connection with the financing of said protect: The Public Hearing will be held: i. Thursday, September 14, 2000 at 9:30 A.M. City of Miami Commission Chamber: 4600 Pan American Drive r. Miami Florida 33133 Interested individuals '.'are -'encouraged to attend this Public. Hearing. The meetlyi4 ' sb- is 46c�ssir,4 to the' 4 NOTICE OF PUBLIC HEARING RELATING TO GRANTS ADMINISTERED BY THE DEPARTMENT OF COMMUNITY DEVELOPMENT ISSUES •'%�-k*l The Miami City Commission will hold a Public Hearing September 14, 2000 to discuss the following issues relating to grants administered by the Department of Community Development: 1. Discussion and proposed resolution on transfer of $300,000 of FY 1998 HOPWA funds previously allocated to the Miami -Dade County Department of Human Services, Office of Community Services, to other HOPWA contracts between the City and the Miami -Dade County Department of Human Services, Office of Community Services to assist low income persons living with HIV/AIDS as follows: From: Contract Amount To: Contract Amount Utility Assistance $300,000 Short Term Housing Assistance $200,000 Housing Assistance $100,000 Total $300,000 Total $300,000 2. Discussion and proposed resolution to allocate funds to the following organizations to provide housing assistance and housing related services to low income persons living with HIV/AIDS throughout Miami -Dade County: SERVICE PROVIDER Better Way of Miami, Inc. City of Miami Department of Community Development Douglas Gardens Community Health Center, Inc. Economic Opportunity Family Health Center, Inc. Greater Bethel A.M.E. Church Lock Towns Community Mental Health Center, Inc. Miami -Dade County Department of Human Services (Office of Community Services) Miami -Dade County Department of Human Services (Office of Community Services ACTIVITY Operations Operations • u�/�T 41fi 1 $ 58,000 $1,000,000 Long -Term Housing Assistance $ 200,000 Long Term Housing Assistance $1,200,000 HIV/AIDS Counseling and $ 134,000 Referral Services Operations — Life Quest I & II $ 25,000 Short -Term Housing Assistance $1,500,000 Emergency Housing Assistance $ 330,000 tt m Miami -Dade Housing Agency Long -Term Housing Assistance: $5,400,000 Shelbourne. Apartments Building, Inc.. Operations $ 45,000 South Florida Jail Ministries, Inc. Operations — AGAPE's Women $ 87,000 Center Nision House TOTAL .$9,979,000 3. Discussion and proposed resolution allocating $150,000 of CDBG funds to the Tacolcy Economic Development Corporation, Inc. to administer the Commercial Loan Program. 4. Discussion and proposed resolution ratifying the City Manager's action to allocate $300,000 of Community Development Block Grant Funds to purchase tax deeds, satisfy prior year real estate taxes and take appropriate legal action to complete the acquisition of the following four (4) multi- family apartment buildings located in the Model City and Overtown neighborhoods, previously owned by Miami Limited I and acquired by the City: 1230 N.W. 58 Street 1240 N.W. 59 Street 5899 N.W. 17 Avenue 1636 N.W. 58 Terrace 5. Discussion and proposed resolution ratifying the City Manager's action to expend $138,787 of HOME Investment Partnership (HOME) Funds to satisfy prior year real estate taxes for 1998 and 1999 on the following eight (8) multi -family apartment buildings located in the Model City neighborhood: 1435 N.W. 61 Street 1455 N.W. 61 Street 1475 N.W. 61 Street 1606 N.W. 58 Terrace 1227 N.W. 58 Street ' 1101 N.W. 62 Street 1535 N.W. 58 Terrace 1611 N.W. 3 Avenue 6. Discussion and proposed resolution changing the number of units to be built, from 19 to 15, in the previously approved Biscayne East Towers Project to be constructed by Banyan Townhomes, L.L.C. using of $342,000 of previously approved SHIP funds; further authorizing the City Manager to execute a subordination agreement between the City and the Local Initiative Support Corporation in connection with the financing of said project. The Public Hearing will be held: Thursday, September 14, 2000 at 9:30 A.M. City of Miami Commission Chamber 3500 Pan American Drive Miami, Florida 33133 Interested individuals are encouraged to attend this Public Hearing. The meeting site is accessible to the handicapped,