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Home My WebLink AboutM-98-016833 INTER -OFFICE MEMORAND Jose Garcia -Pedrosa January 22, 1998 = City Manager Latin Quarter Specialty Center Xavier L. Suarez,, proposal, statement, Mayor sketches Attached please find a copy of the information pertinent to the Latin Quarter Specialty Center. I strongly support this project as it combines homeownership opportunities for families of low to moderate income with businesses that will revitalize the area economically. The total funding for the project is $1,600,000, which includes administrative costs. The monies for the project can be attained from two sources: 1. St. Hugh Oaks property sale revenues; the account presently has a balance of $1,594,481, of which $700,000 has been earmarked for Bayfront Park. The balance of $894,481 plus the future revenues from an additional 8 units pending sale (approximately $752,000) would cover the cost completely. 2. If the entire balance from St. Hugh Oaks cannot be committed, the balance can be borrowed from past C.D.B.G. funding cycles or committed from next year's C.D. B.G. 1 would like to have this presented to the city commission for approval, at the First commission meeting in February. Please advise. cc: Mr. Joseph R. Pinon, Assistant City Manager Mr. Frank Castaneda Anna Figueroa J8- 168 CITY OF MIAMI, FLORIDA TO FROM INTER -OFFICE MEMORANDUM The Honorable Mayor and Members of the City Commission Jose Garcia -Pedrosa City Manager RECOMMENDATION: DATE: SUBJECT: REFERENCES: ENCLOSURES February 2, 1998 FILE: Request for Funding for Latin Quarter Specialty Center City Commission Meeting of February 10, 1998 The Administration is recommending that the proceeds from the St. Hugh Oaks project be reserved, as these funds are unrestricted and should be earmarked pending the outcome of the HUD audit. It is recommended that the project be considered and approved for funding under the 24"' Year CDBG Program, which culminates in April, 1998, or the HOME Program and SHIP Program allocation process by the City Administration and City Commission, which culminates in June of 1998. The Administration is recommending that the proceeds from the St. Hugh Oaks project be reserved. BACKGROUND: Pursuant to Mayor Xavier L. Suarez's memorandum, dated January 22, 1998, the City Administration has explored the possibility of funding the proposed 45-unit Latin Quarter Specialty Center project, which is being proposed by the East Little Havana Community Development Corporation, from the estimated sale proceeds available from the St. Hugh Oaks Village Condominium project. To date, approximately $1.6 million is available from the sale proceeds, and the Administration is recommending that these funds be reserved pending the outcome of the recent HUD audit. To date, the East Little Havana Community Development Corporation has secured approximately $2,000,000.00 in City financial assistance for the project from the City's HOME Program and SHIP Program. Additional funding for the project has been secured from the following sources: Pacific National Bank/Homes For South Florida - $2,830,006.00 Local Initiatives Support Corporation - $1,000,000.00 Miami -Dade County (Surtax Program) - $800,000.00 An additional $1,200,000.00 in project financing is necessary in order to complete the financing package required to commence construction. In October of 1997, the East Little Havana Community Development Corporation submitted a proposal to the City of Miami for the additional 3 ')8- 168 The Honorable Mayor and Members of the City Commission February 2, 1998 Page 2 financing required from the City's 24' Year Community Development Block Grant Program, which commences on June 1, 1998. Approximately $500,000.00 in City financial assistance would be needed for the housing component and $700,000.00 for the commercial/retail component of the project. Presently, the Department of Community Development is undergoing the planning process in preparation of the City's Consolidated Plan, for submission to the U.S. Department of Housing and Urban Development (HUD), for the implementation of the City's 24t' Year CDBG and HOME Programs. It is anticipated that the City Commission, by April, 1998, will allocate CDBG Program funds to various organizations for undertaking public services, economic development, housing, and physical improvement activities during the City's 24`'' Year CDBG Program. Moreover, it is also anticipated that the City's HOME Program and SHIP Program funding cycle, which would allocate funding to various organizations planning to undertake housing activities in the City, would be completed by the City Commission by June 1, 1998. JGP/CMC/ELW:vh q,17TVI�- <shared-memosvh>mayorcc43 4 4'J UIST LITTLE t1/1 VJI NA Corlrl MITY DCVr-L0r-i 1C1'1T C OIC t-OKA T IOr' BOARD OF DIRECTORS }(aria Elena Prio President Wifredo Gort f<Ce-PresiLdent Rev. F7orentino Almeida Treasurer Antonio Prado secretary Jesselyn Brown Ernesto Capote Carmen M" iturralde Sandra Rothman Rev. Nfareos Antonio Ramos Dr. Nfayda C. Aatun Yunis Segura EXECUTIVE DIRECTOR Anita Tejon Rodrigues-Teiera ..r Lit(lt ff,rA.• CDC n r)TCC 1,Ilf1'A �). )r..IC SII: ., ;IP9)1<4.:ti- ., i In t, IC,,. 141.•1 . i...r.. I.J. Ill Ill December 30, 1997 Honorable Mayor Xavier Suarez City of Miami 3500 Pan American Drive Miami, FL 33133 Ph: 250-5300 Fax: 854-4001 Dear Honorable Mayor Suarez: I Latin Quarter Specialty Center is a mixed use project consisting of 45 homeownership un as well as 14,000 square feet of commercial/retail space. The projecf is being dev o c provide much needed housing aimed for low to moderate income families. In East Li, Havana only 3% of the residents are homeowners. The proposed Latin Quarter Specialty Center development will consist of 15 three bedroc units and 30 two bedroom units. The condominium units will be priced below market ra. and through leverage financing we will make all units available to low to moderate incor families. -The sales prices will be approximately S84,000 for a two bedroom unit to S93,0 for a three bedroom unit. The three bedroom units, with a monthly payment of S7 (principal, interest, insurance and maintenance fees) are affordable to families earning as liv as S28,704 per year, which represents 55% of the area median income in Dade County for family of five. The funding sources for the construction financing are as follows: Pacific National Bank/Homes for So. Florida Loan S2,830,006 L ISC Loan S 1,000,000 Dade County Surtax Loan S 800,000 City of Miami - SHIP Grant $1,000,000 City of Miami - Residential - CDBG Grant S 500,OOQ City of tifiami - Economic Dev. -CDBG Grant S 700,000 City of �fiami/State of Florida- Plaza Grant S 200,000 Local Contributions Fee Waivers Wai�-er S 151.746 Committed Committed Committed Committed Requested Requested Pending Status Committed The funding sources for the permanent residential financing are as follows: Citibank F.S.B..'Homes for S. Fl lst Lien S2.919.250 Prevailing tined rates Gmr:iW Dade County Surtax 2nd Lien S 300.000 3% CdnT 1ts The projected time lines for this development are as follows: All financing commitments, pending City funding will be in place by Nfarch, Closing of construction loans by June, 1998; Begin construction by June, 1998 (the day after loan closings); Pre -sales and reservation agreements have commenced; Completion of project by September, 1999; Units closings and occupancy to take place immediately thereafter. In order to complete the financing package for construction and permanent financing, requesting from the City of Miami the following support: 1) S500,000 grant for the housing component and S700,000 grant for the Econo Development Commercial/Retail component. 2) Determination of availability of the S200,000 State grant to the City PIanr. Division for the Plaza or a S200,000 grant to replace the State grant. 3) Full Title transfer of the land that was paid for with Federal HOME funds from City to the CDC. 4) Parking zoning variance to allow 1 parking space per housing unit (45 spaces) an additional 45 spaces for the 14,000 square feet commercial/retail component. Tc of 90 parking spaces to be provided. Finally, this is to emphasize that the Latin Quarter Specialty Center project is a developm that will reduce the operating expenses of the City of Miami by transferring all maintenai costs to the CDC that are currently being paid from the City's general fund and is a project t is substantially increases the tax base of the City of Miami of both, a half cent sales tax a Real Estate property taxes. The current tax revenue from this property to the City is $0 a after completion of its development by our CDC It will generate an estimated $104,000 Real Estate property tares to the City. The half cent sales tax revenue will vary depending the sales levels of the various businesses that will locate at this facility. We would greatly appreciate a prompt and favorable decision on theses matters and thank for your continued support to our organization. Sincere MIR mitt/jo Exec ll�fi 10 �Tej era 168 6 0 wrnirl.F."rTF.KS.,.X.k�. I t_'D go, m GZ ST. H11GM �(,O1MT �N' INC. !. Hide , 30 fta%maW R@ftlWkwe) S1.114.366.21 a. Adddmdnapg" -mom 230.25 pro"* 93'"0.82 Z1t04 ` A� Mmummu aDoaai 95.487.33 L�edarv°■�pe0O0V� 9d.19265 °i0■� rvoae�4 2?.iil.� i 311S,S30.54 Ai. [bldm - 8. IV - SwLaft m 4 325.00 - � 1ZR • F� �d 1.131�,QQ (! t 4__._ -s 00 RaANM M ggCagW AQXVM w�aawua fly a� C• 1 0 '., IIUI! = I■I I■I I■I I■1 1111 141 �� .1■l I�l_I�l. _�_.lrl_I/t._l�i .�l__.1■1 _I�1_IlM1.�..11 �I 1■I 1AI 1■I. 0, NINE W IyI ( . ... ... ... . ... ..... ... . ...IL amill OMNI LNTIN QUARTER. 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