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Home My WebLink AboutR-98-0779J-98-744 7/21/98 RESOLUTION NO. 9 `-' - 779 A RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER, ALONG WITH THE STAFF OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA"), TO NEGOTIATE WITH BAME DEVELOPMENT CORPORATION OF SOUTH FLORIDA ("BAME"), THE AMOUNT OF THE ADDITIONAL FINANCIAL ASSISTANCE, NOT TO EXCEED $638,040.00, TO BE PROVIDED TO BAME FOR THE DEVELOPMENT OF THE NEW HOPE OVERTOWN HOUSING PROJECT ("PROJECT"), SUBJECT TO CERTAIN TERMS AND CONDITIONS AS SET FORTH HEREIN AND THE APPROVAL OF THE CITY COMMISSION, WITH FUNDS THEREFOR BEING AVAILABLE FROM THE 24TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT AND THE HOME GRANT; FURTHER AUTHORIZING AND DIRECTING THE CITY MANAGER TO ENTER INTO A TRI-PARTY AGREEMENT WITH BAME AND THE CRA, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO PROVIDE FOR THE MARKETING OF THE PROJECT. WHEREAS, the City, in cooperation with BAME Development Corporation of South Florida (11BAME11), is implementing a project known as the New Hope Overtown housing project ("Project") to increase the supply of affordable housing for low and very low income families and individuals; and WHEREAS, the Project consists of forty (40) single family homes, to be constructed in two phases, to be located in the Overtown Community Development Target Area; and WHEREAS, pursuant to Resolution No. 96-320, passed and CITY CONMSSION WETING OF J U L 2 1 1998 fwsoluuon NO. 9 8 -- 779. adopted by the City Commission on August 23, 1996, BAME was allocated Eight Hundred Thousand Dollars ($800,000.00) of HOME funds to assist with the construction financing for the development of the Project; and WHEREAS, the total cost for the Project is $5,240,892.00; and WHEREAS, BAME has secured funds, including the City's HOME funds, in the amount of $4,502,852.00 to cover the cost of the Project; and WHEREAS, notwithstanding the substantial financing BAME has secured, there remains a shortfall in the amount of $738,040.00, inclusive of land cost, to complete the Project; and WHEREAS, inasmuch as the Project is vital to the redevelopment of Overtown, the City's commitment to such redevelopment would be further evidenced by an increase in construction financing and providing additional City resources to ensure the Project's completion; and WHEREAS, the Department of Public Works has the funds available to construct the off -site infrastructure improvements; and WHEREAS, HOME funds are available to provide additional financing to BAME for additional Project costs; and WHEREAS, in order to further ensure the success of the 2 98-- 779 Project, the City should provide assistance in an effort to effectively market 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, along with the staff of the Southeast Overtown/Park West Community Redevelopment Agency ("CRA"), to negotiate with BAME Development Corporation of South Florida ("BAME"), the amount of the additional financial assistance, not to exceed $638,040.00, to be provided to BAME for the development of the New Hope Overtown housing project ("Project"), subject to the following terms and conditions and the approval of the City Commission: A. All construction estimates for the Project will be verified by a third party engineering firm. B. The Department of Public Works will construct or cause to be constructed the off - site infrastructure improvements for the Project, for a cost not to exceed $100,000.00, with funds therefor being available from the 24th Year Community Development Block Grant. C. An amount not to exceed $538,040.00 will be provided to cover an additional portion of the Project's shortfall, with funds therefor being available from the HOME Grant. D. The additional financing will be passed on to the purchasers of the housing 3 np_ 7719 units within the Project as a credit towards the purchase price. Section 3. The City Manager is further authorized) and directed to enter into a tri-party agreement with BAME and the CRA, in a form acceptable to the City Attorney, to provide for the marketing of the Project. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 PASSED AND ADOPTED this 21st day of July , 1998. ATTEST: JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate appr w,' of this legislation by signing it in the designated place provided, said, iiclr'=; becomes effective with the elapse of ten (10) days from the date of Commissicri regarding same, without the Mayor exercising a veto. / *%PWFoeman, City Clerk WALTER J. FOEMAN CITY CLERK ATTORNEY csk/W2740 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. 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. 4 9 8 - 779 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and DATE: July 21, 1998 FILE: Members of the Commission SUBJECT: POCKET ITEM E. i FROM: Arthur E. Teele, Jr. REFERENCES: Commissioner Agenda Item #25A NCLOSURES: Please be advised Agenda Item #25A is subject to the following conditions: 1) City of Miami and Community Redevelopment Agency (CRA) staff will negotiate the amount of additional subsidy, not exceeding $638,040, with BAME Development Corporation; 2) All construction estimates will be verified by a third party engineering firm; 3) The City of Miami Public Works Department will construct all off -site infrastructure improvements; and 4) All new subsidy will be passed to the purchasers of housing units, as credit toward the purchase price. CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM The Honorable Mayor, Joe Carollo and Members of the City Commission Donald H. Warshaw City Manager RECOMMENDATION: 25 A DATE: July 15, 1998 FILE SUBJECT. Resolution Relating to Development of New Hope-Overtown Housing Project REFERENCES: City Commission Meeting of ENCLOSURES: July 21, 1998 It is respectfully recommended that the City Commission adopt the attached resolution authorizing and directing the City Manager, through the Department of Public Works, to construct or cause to be constructed the required off -site infrastructure improvements, in connection with the construction of the proposed 40-unit New Hope/Overtown Housing Project. It is further recommended that the City Manager is authorized and directed to allocate an amount not to exceed $100,000 from the 24kYear Community Development Block Grant (CDBG) Program, from the "City-wide Streets and Sidewalk Project," to defray the cost of said off -site improvements. The attached resolution further authorizes the City Manager to allocate an amount not to exceed $638,040 in Home Investment Partnership Program (HOME) funds to BAME Development Corporation of South Florida, Inc., for the purpose of defraying the cost of infrastructure improvements for the proposed housing project. BACKGROUND: In March, 1994, the City Commission, through Resolution No. 94-191, approved in principle, the designation of BAME Development Corporation of South Florida, Inc., as developer of a 40-unit affordable housing project, on City -owned land in the Overtown neighborhood. In August of 1996, through Resolution No. 96-320, the City Commission directed the City Manager to allocate approximately $800,000 in HOME Program funding, to assist the not -for -profit corporation in financing the construction of the proposed New Hope/Overtown Housing Project. The total cost of constructing the proposed housing project is approximately $5,240,892. In addition to the project financing which has been provided by the City of Miami, BAME Development Corporation of South Florida, Inc., has also secured project financing from the following sources: 1- City of Miami $ 800,000 2. Miami -Dade County 590,000 3. Federal Home Loan Bank 216,000 4. City National Bank/Republic Bank/Espirito Santo Bank of Florida 2,896,852 Total $4,502,898— 779 The Honorable Mayor, Joe Carollo and Members of the City Commission July 15, 1998 Page 2 Although BAME Development Corporation of South Florida, Inc., has secured approximately $4,502,852 in financing for the proposed project, there still remains a financing shortfall in the amount of approximately $738,040 required to complete the on -site infrastructure improvements. In an effort to provide affordable homeownership opportunities to forty (40) very low, low- and moderate -income families in the Overtown neighborhood, it is recommended that the City Commission direct the City Manager, acting through the Department of Public Works, to construct or facilitate the construction of the off -site infrastructure improvements for the New Hope/Overtown Housing Project, for a cost not to exceed $100,000. Said funds to be allocated from the 24te-Year Community Development Block Grant Program from CDBG Project entitled "City-wide Streets and Sidewalks Project." Moreover, it is recommended that the City Commission allocate an amount not to exceed $638,040 in HOME Program funding to BAME Development Corporation of South Florida, Inc., to assist in financing the on -site infrastructure improvements required to develop the proposed New Hope/Overtown Housing Project. DHW/GCW/JBH:vh c: Gwendolyn C. Warren <shared-memosvh>mayorcc64 98 - 779