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HomeMy WebLinkAboutR-99-0559J-99-574 7/2/99 RESOLUTION NO. 9 9- 559 A RESOLUTION OF THE MIAMI CITY COMMISSION RESCINDING RESOLUTION NO. 98-1211, ADOPTED DECEMBER 8, 1998, WHICH ALLOCATED $320,000 IN HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) PROGRAM FUNDING TO THE PROPOSED EVERGLADES . CENTER APARTMENTS PROJECT; AUTHORIZING AND DIRECTING THE CITY MANAGER TO ALLOCATE $320,000 IN FY 1998-99 HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM FUNDS TO THE EVERGLADES CENTER APARTMENTS PROJECT, CONSISTING OF 42 UNITS, TO BE LOCATED IN THE DOWNTOWN TARGET AREA AT 282 NORTHEAST 2ND STREET, MIAMI, FLORIDA, BY EVERGLADES CENTER APARTMENTS PARTNERSHIP; AUTHORIZING THE CITY MANAGER TO SUBMIT AN AMENDMENT TO THE CITY OF MIAMI'S 1998 ANNUAL ACTION PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE.ALLOCATION OF SAID FUNDS, AND TO EXECUTE THE NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. WHEREAS, in April 1997, the City of Miami's Housing Loan Committee approved financial assistance to Everglades Center Apartment Partnership (the ''Partnership"), which consists of the Downtown Realty Investment Corporation and Kapustin Corporation, the sponsor of the proposed 42 unit Everglades Center Apartment Project, which involves the conversion/rehabilitation of a commercial property into residential housing reuse located at 282 J U L 2 7 1999 Resolution No. 99- 559 Northeast 2nd Street, Miami, Florida; and WHEREAS, approximately $629,580 in HOME Investment Partnership Program funds and $200,000 in Community Development Block Grant Program funds have been previously allocated by the City of Miami for said purpose; and WHEREAS, in November 1997, a loan closing was held by the Department of Community Development, and the Partnership commenced the process of pulling building permits for the proposed project; and WHEREAS, at that time, the Department of Building and Zoning required certain changes to the conversion/rehabilitation plans which have resulted in substantial increases in the cost of the project, creating an approximate short fall in the amount of $400,000; and WHEREAS, at the December 8, 1998, City Commission meeting, through Resolution No. 98-1211, the City Commission authorized the City Manager to allocate $320,000 in Housing Opportunities for Persons With AIDS (HOPWA) Program funds to the Everglades Center Apartments Partnership, in connection with the proposed project; and WHEREAS, it has been determined that the HOPWA Program funds - 2 - can only be made available to a not -for -profit entity, and that the Program regulations preclude for -profit entities from receiving HOPWA funding; and WHEREAS, it is recommended that the City Commission authorize the allocation of funding from the City's FY 1998-1999 HOME Program funds in the amount of $320,000 for the development of the Everglades Center Apartments Project, and authorize the City Manager to submit an amendment to the City of Miami's 1998 Annual Action Plan for the allocation of said funds and execute the necessary documents; 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. Resolution No. 98-1211, adopted by the City Commission on December 8, 1998, is hereby rescinded. Section 3. The City Manager is hereby authorized to - 3 - g-_ 5�-9. allocate funding from the City's FY 1998-1999 HOME Investment Partnership (HOME) Program, in the amount of $320,000 for the development of the Everglades Center Apartment Project, consisting of 42 units, to be located in the Downtown Target Area at 282 Northeast 2nd Street, Miami, Florida, by Everglades Center Apartments Partnership. Section 4. The City Manager is hereby authorized" to submit an amendment to the City of Miami's 1998 Annual Action Plan to the U.S. Department of Housing and Urban Development for the allocation of said funds, and to execute the necessary documents, in a form acceptable to the City Attorney, for said purpose. Section 5. This Resolution shall become effective �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. - 4 - • • immediately upon its adoption and signature of the Mayor.2/ PASSED AND ADOPTED this 27th day of July , 1999. JOE CAROLLO, MAYOR in accordance with Miami Code Sec. 2-36, since the Mayor did not indicate app f of this legislation by signing it in the designated place provided, said iegislation now becomes effective with the elapse often (10) da from the to of Cororrri= n zC00't regarding same, without the Mayor rc' a o. ATTEST: • Wt;,p0RW111Fn, Cfty Cledc WALTER J. FOEMAN CITY CLERK RRECTNESS t W3574:RCL zi 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. - 5 - 99-- 559 The Honorable Mayor and Members of the City Commission Donald H. Warshaw City Manager RECOMMENDATION: P �6 J U N 2 11999 Resolution Allocating $320,000 in HOME Program Funds Everglades Center Apartments City Commission Agenda Item July 13, 1999 It is respectfully recommended that the City Commission adopt the attached Resolution rescinding Resolution No. 98-1211 adopted December 8, 1998, and directing the City Manager to allocate $320,000 in FY 1998-99 HOME Investment Partnership Program (HOME Program) funds to the Everglades Center Apartments Partnership, sponsor of the proposed 42 unit Everglades Center Apartment Project, planned in the Downtown target area. The attached resolution further directs the City Manager to submit an amendment to the City's Annual Action Plan for approval by the U.S. Department of Housing and Urban Development for the allocation of the said HOME Program funds. BACKGROUND: In November of 1997, a loan closing was held by the Department of Community Development and the Everglades Center Apartments Partnership (The "Partnership"), which consists of the Downtown Realty Investment Corporation and Kapustin Corporation, the sponsor of the proposed 42 unit Everglades Center Apartments Project. Six Hundred Twenty Nine Thousand Five Hundred Eighty Dollars in HOME Investment Partnership Program funds and Two Hundred Thousand Dollars in Community Development Block Grant Program funds were made available by the City, in connection with conversion/rehabilitation of a commercial property into residential housing reuse. The first floor of the three (3) story building, located at 282 Northeast 2"d Avenue, will continue to be used for commercial/retail activities. The second and third floors will be converted from commercial use into forty-two (42) residential apartments, consisting of efficiencies and one (1) bedroom units for occupancy by low and moderate income individuals. During the process of the property owner pulling building permits through the Department of Building and Zoning, the cost of the project increased substantially due to a number of changes required by the Department of Building and Zoning. 99- 559 r Based on City staff's analysis of the modification to the plans which were required, the proposed project experienced an increase of approximately $400,000. In an attempt to move the proposed project forward in December, of 1998, the City Commission, through Resolution No. 98-1211, authorized the City Manager to allocate $320,000 in Housing Opportunities for Persons With AIDS (HOPWA) Program to the proposed project. During the contract preparation phase, it was determined that the Everglades Center Apartments Partnership did not have a not -for -profit entity in place which would allow the City to make the HOPWA Program funds available to the Partnership. In accordance with federal regulations governing the HOPWA Program, program funds can only be made available to a not -for -profit corporation for the provision of housing and/or housing related services to persons living with HIV/AIDS. In order to change the project's funding source, pursuant to Resolution No.98-1211, it is recommended that the City Commission direct the City Manager to allocate $320,000 in FY 1998-99 HOME Investment Partnership Program funds to the Everglades Center Apartments Partnership, in connection with the aforementioned project. In addition, the attached resolution also rescinds Resolution No. 98- 1211, which allocated $320,000 in HOPWA Program funding to the project. In an effort to provide affordable housing opportunities to forty-two (42) low and moderate income individuals 'in the Downtown, City Commission approval of the attached resolution is recommended. DHWJ�9/G /JBH/mb Enclosure <Shared/Memosmb-MemoResoEvergladesCenterAparts> 2 0 J-98-1239 12/8/98 RESOLUTION NO. 9 S — I ') 1 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ALLOCATE FUNDS FROM THE FY 1998-1999 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS ("HOPWA") PROGRAM, IN THE AMOUNT OF $320,000, FOR THE DEVELOPMENT OF THE EVERGLADES CENTER APARTMENT PROJECT, CONSISTING OF 42 UNITS, TO BE LOCATED IN THE DOWNTOWN TARGET AREA AT 282 NORTHEAST 2ND STREET, MIAMI, FLORIDA, BY EVERGLADES CENTER APARTMENTS PARTNERSHIP; AUTHORIZING THE CITY MANAGER TO SUBMIT AN AMENDMENT TO THE CITY OF MIAMI' S 1998 ANNUAL ACTION PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE REALLOCATION OF SAID FUNDS, AND TO EXECUTE THE NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. WHEREAS, in April 1997, the City of Miami's Housing Loan Committee approved financial assistance to Everglades Center Apartment Partnership (the "Partnership"), which consists of the Downtown Realty Investment Corporation and Kapustin Corporation, the sponsor of the proposed 42 unit Everglades Center Apartment Project, which involves the conversion/rehabilitation into residential housing reuse of a commercial property located at 282 Northeast 2nd Street, Miami, Florida; and WHEREAS, approximately $629,580 in HOME Investment Partnership Program funds and $200,000 in Community Development 00� 0 , 0 Block Grant Program funds have been allocated by the City of Miami for said purpose; and WHEREAS, in November 1997, a loan closing was held by the Department of Community Development, and the Partnership commenced the process of pulling building permits; and WHEREAS, the Department of Building and Zoning required certain changes to the conversion/rehabilitation plans which has resulted in substantial increases in the, cost of the project, creating an approximate short fall in the amount of $400,000; and WHEREAS, the Partnership is seeking an additional $320,000 in City financial assistance to move forward with the proposed project; and WHEREAS, it is recommended that the City Commission authorize the allocation of funding from the City's FY 1998-1999 HOPWA Program funds, in the amount of $320,000 for the development of the Everglades Center Apartment Project and authorize the City Manager to submit an amendment to the City of Miami's 1998 Annual Action Plan for the reallocation of said funds and execute the necessary documents; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY 99- 559 2 - • E 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 to allocate funding from the City's FY 1998-1999 Housing Opportunities for Persons with Aids ("HOPWA"), in the amount of $320,000 for the development of the -Everglades Center Apartment Project, consisting of 42 units, to be located in the Downtown Target Area at 282 Northeast 2nd Street, Miami, Florida, by Everglades Center Apartments Partnership. Section 3. The City Manager is hereby authorizedl/ to submit an amendment to the City of Miami's 1998 Annual Action Plan to the U.S. Department Of Housing And Urban Development for the reallocation of said funds, and to execute the necessary documents, in a form acceptable to the City Attorney, for said 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. 99- 559 3 - 11 • purpose. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.Z/ PASSED AND ADOPTED this sth day of DPnRMbPr , 1998. JOE CAROLLO, MAYOR In awordanoe with Miami Code Sec. 2-36, since the Mayor did not indicate aporovat of tiles bgislation by signing it In the designated place provided, said legistat o:. --)^ . betmo effective with the elapse of xW ys from the date of Ccmmissicn act?c!4 same, without the Mayor eveto. ATTEST: F69man. City Ciark WALTER LT. FOffiMAN CITY CLERK NESS:U 2� 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. 99 559