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HomeMy WebLinkAboutR-98-0865J-98-859 8/26/98 RESOLUTION NO. 9 8 - 8 6154 A RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER TO ENGAGE THE SERVICES OF BERMELLO, AJAMIL & PARTNERS, INC., IN AN AMOUNT NOT TO EXCEED $10,000, FOR THE PURPOSE OF ASSISTING THE COMMUNITY REDEVELOPMENT AGENCY (CRA) AND THE DEPARTMENT OF COMMUNITY DEVELOPMENT IN DEVELOPING A HOUSING PLAN FOR THE PROPOSED NORTHWESTERN ESTATES HOUSING PROJECT AND PROVIDING TECHNICAL ASSISTANCE FOR THE PROPOSED NEW HOPE/OVERTOWN HOUSING PROJECT. WHEREAS, pursuant to Resolution No. 98-584, adopted June 9, 1998, the City Commission directed the City Manager to engage an independent consultant to prepare a project analysis for the Northwestern Estates Housing Project in response to issues and concerns cited by U.S. HUD' s Office of the Inspector General in its audit report dated March 26, 1998; and WHEREAS, said Resolution also allocated an amount, not to exceed $10,000, from the Home Investment Partnership Program, Account No.'s 198001.63010.6.270 and 198006.6.270 for this purpose; and WHEREAS, pursuant to Resolution No. 98-779, adopted July 21, 1998, the City Commission allocated an amount, not to exceed $638,040, to BAME Development Corporation of South Florida, Inc., in connection with the development of a proposed 40-unit New Hope/Overtown Housing Project to be located in the Overtown CITY COS DEMFTMG OF SEP 0 8 W8 Resolution No. 98- 865 target area; and WHEREAS, pursuant to Resolution No. 98-779, the City Commission directed the City Manager, along with the staff of the Community Redevelopment Agency (CRA), to negotiate with BAME Development Corporation of South Florida, Inc., the actual amount of additional financial assistance to be provided to the aforementioned corporation, subject to all construction estimates for the project to be verified by a third party engineering firm; and WHEREAS, at the July 21, 1998 City Commission meeting, through Resolution No. 98-796, the City Commission designated and directed the Community Redevelopment Agency to prepare a housing plan within the next four (4) months, for the proposed Northwestern Estates Housing Project, should the current developer fail to comply with the provisions set forth in Resolution No. 98-585, within the time frame specified in said Resolution; and WHEREAS, an executed Professional Services Agreement between the Community Redevelopment Agency and Bermello, Ajamil & Partners, Inc., dated April 28, 1998 presently exists; and WHEREAS, in an effort to meet the terms and conditions specified by the City Commission and pursuant to the HUD audit, it is recommended that the City Commission authorize the Community Redevelopment Agency (CRA) to use the services of Bermello, Ajamil and Partners, Inc. to perform the required project analysis, in connection with the Northwestern Estates 2 - 98 - 865 Housing Project and the New Hope/Overtown Housing Project planned in the City; and WHEREAS, pursuant to Resolution No. 98-584, an amount not to exceed $10,000 is available from the Home Investment Partnership Program Account Nos. 198001.630101.6.270 and 198006.630101.6.270, to defray the cost of the required architectural and third party engineering services required in connection with the aforementioned housing projects; 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 engage the services Bermello, Ajamil and Partners, Inc., to assist the Community Redevelopment Agency (CRA), and the Department of Community Development, in developing a housing plan for the proposed Northwestern Estates Housing Project and the provision of technical assistance in connection with the proposed New Hope/Overtown Housing Project, pursuant to Resolution Nos. 98-796 and 98-779, respectively. Section 3. Pursuant to Resolution No 98-584, funding in an amount not to exceed $10,000 is hereby available from the Home Investment Partnership Program Account Nos. 198001.630101.6.270 and 198006.630101.6.270, to defray the cost of the required architectural and third party engineering services required in - 3 - 98 - 865 connection with a cost analysis and/or development of a housing plan for the aforementioned housing projects. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.1/ PASSED AND ADOPTED this 8th day of September , 1998. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of this legislation by signing it in the designated place provided, said legislation now becomes effective with the elapse of ten (10) days from the date of Commission action regarding same, without the Mayor exercisirxj a�vg., 1 --11% , ATTEST: WALTER J. FOEMAN CITY CLERK CORRECTNESS:tj ATTORNEY 845:CSK:kc J. FOAM'. City Ckwk 1� 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 - 98- 865 CITY OF MIAMI, FLORIDA 31A INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and DATE: August 12, 1998 FILE: Members of the City Commission SUBJECT: Resolution Engaging Architectural / Engineering Services for Northwestern Estates / New Hope-Overtown FROM: 10�� REFERENCES: Housing Projects onald H. Warshaw City Commission Agenda City Manager ENCLOSURES: Item - September 8, 1998 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution, authorizing and directing the City Manager to engage the services of the firm of Bermello, Ajamil & Partners, Inc. in an amount not to exceed $10,000, for the purpose of assisting the Community Redevelopment Agency (CRA) and the Department of Community Development in developing a housing plan for the proposed Northwestern Estates Housing Project planned in the Model City target area. It is also recommended that said firm provide technical assistance to the aforementioned entities in connection with the proposed New Hope/Overtown Housing Project planned in the Overtown target area. BACKGROUND: At the June 9, 1998 City Commission meeting, through Resolution No. 98-584, the City Commission authorized and directed the City Manager to engage the services of an independent consultant, for the purpose of performing a project analysis of the proposed Northwestern Estates Housing Project, in response to the concerns cited by U.S. HUD's Office of the Inspector General, in its audit report dated March 26, 1998. Through Resolution No. 98-584, the City Commission also allocated an amount not to exceed $10,000 from the Home Investment Partnership Program from account numbers 198001.630101.270 and 198006.630101.6.270, to defray the cost of said services. At the July 21, 1998 City Commission meeting, through Resolution No. 98-796, the City Commission designated and directed the Community Redevelopment Agency to prepare a plan within the next four (4) months, in connection with the proposed Northwestern Estates Housing Project, in the event the current developer, the Urban League of Greater Miami, Inc., fails to comply with the provisions set forth in Resolution No. 98-585. • • 1 The Honorable Mayor and Members of the City Commission Page 2 At the July 21, 1998, City Commission meeting, through Resolution No. 98-779, the City Commission allocated an amount not to exceed $638,040 to BAME Development Corporation of South Florida, Inc., in connection with the development of the proposed 40 unit New Hope/Overtown Housing Project planned in the Overtown neighborhood. Through Resolution No. 98-779, the City Commission further authorized and directed the Community Redevelopment Agency (CRA) to negotiate the actual amount of additional city financial assistance required to construct the aforementioned housing project, subject to all construction estimates being verified by a third party engineering firm. Presently, the City's contract for outside consultants for the provision of architectural and engineering services expired approximately two (2) months ago. It is anticipated that it will require the Department of Public Works three (3) months to go through a solicitation process to secure the aforementioned services. Currently, there exists an executed professional service agreement between the Community Redevelopment Agency and Bermello, Ajamil & Partners, Inc., dated April 28, 1998. In an effort to meet the four (4) month deadline of devising a housing plan for the Northwestern Estates Housing Project and to verify the cost of developing the New Hope/Overtown Housing Project, it is recommended that the City Commission approve the utilization of the aforementioned firm for the said services. Funding in an amount not to exceed $10,000 is available from the Home. Investment Partnership Program from account numbers 198001.630101.270 and 198006.630101.6.270, to defray the cost of the architectural and third parry engineering services required in connection with the aforementioned housing projects. DHW:DB:dk:JBH:sjg [Memosj g] <Northwestern.doc> 98- 86S J.98-286 05/11/98 RESOLUTION NO. N 8 4 A RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER TO ENGAGE THE SERVICES OF AN INDEPENDENT CONSULTANT TO PERFORM A PROJECT ANALYSIS OF THE NORTHWESTERN ESTATES HOUSING s PROJECT IN RESPONSE TO THE CONCERNS AND ISSUES CITED 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, FOR A FEE NOT TO EXCEED $10,000, WITH FUNDS THEREFOR BEING AVAILABLE SIN THE HOME INVESTMENT PARTNERSHIP PROGRAM, ACCOUNT NOS. 198001.630101.6.270 AND 198006.630101.6.270; FURTHER DIRECTING THE CITY MANAGER TO SUSPEND ALL FUTURE PAYMENTS TO s LIBERTY HOUSING ASSOCIATES AS THE DEVELOPER OF THE PROJECT UNTIL SUCH TIME AS THE ISSUES AND CONCERNS AS CITED BY THE OIG IN THE AUDIT HAVE BEEN RESOLVED BY THE CITY ADMINISTRATION. WHEREAS, pursuant to Resolution No. 95-853, passed and adopted on December 7, 1995, the City Comnussion allocated $4.8 million in HOME Program funds to the Urban League of Greater Miami, Inc., in connection with the development of the proposed 134 unit housing project known as Northwestern Estates (fWa "Knight Manor") in the Model City Community Development Block Grant target area; and WHEREAS, the Urban League formed a Florida general partnership with Knight Manor Homes of Miami, Inc. to develop the Project under the name of Liberty Housing Associates ("Developer"); and OP JUN 98- 866 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 ("Audit"), cited several findings and concerns relating to the City's ineffectiveness in requiring the Developer to demonstrate that the Project would be affordable to very low income families and requiring the Developer to obtain adequate financing to complete the construction of the Project; and WHEREAS, the OIG has required the City to obtain from the Developer approximately $144,000 in program income received by the Developer from the Dade County School Board for the sale of approximately one (1) acre of land originally purchased with HOME funds for the Project; and WHEREAS, the OIG has also required the City to reevaluate the affordability Thd . economic feasibility of continuing to fund the development of 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. In response to the issues and concerns cited 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 the City Manager is hereby directed to engage the services of an independent consultant to perform an economic and affordability analysis of the proposed 134 unit Northwestern Estates Housing Project, for a fee not to exceed $10,000, with funds therefor being available in the Home Investment Partnership Program, 198001.630101.6.270 and 198006.630101.6.270. -2- Account Nos: �8- 865 A Section 3. The City Manager is hereby authorized and directed to suspend all future payments to the Liberty Housing Associates. as the developer of the Project until such time as the issues and concerns as cited by the OIG have been resolved by the City Administration. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 9 th day of June , 1998. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate aoo*ovM of this legislation by signing it in the designated place providea, sai.1 becomes effective with the elapse of ten (10) days fyr. m t: a date of Ccm ' sscn L ATTEST: regarding sameti without the Mayor exercisin a � Walter' man, Cfly Clark WALTER J. FOEMAN CITY CLERK PREPARED AND APPROVED BY: LINDA KELLY O ASSISTANT CITY ATTORNEY LKK/csk/W2355 -3- a�- 8 6,5 J-98-744 7/21/98 RESOLUTION N0. v V r 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 GAME 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 BRING AVAILABLE FROM THE 24TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT AND THB HOME GRANT; FURTHER AUTHORIZING AND DIRECTING THE CITY MANAGER TO ENTER INTO A TRI-PARTY AGREEMENT WITH BANE 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 GAME Development Corporation of South Florida ("BAME"), 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 CnT COKMSSiON MEETING OF JUL 2 1 1998 Aasolutum Na 1 • • R U. la.,- _ 1 y — —.J t:i W t AJ y : 3 1 adopted by the City Commission on August 23, 1996, NAME 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 Ci.ty's HOME funds, in the amount of $4, 502, 852.00 to cover the cost of the Project; and WHEREAS, notwithstanding the substantial financing FAME 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 GAME for additional Project costs; and WHEREAS, .in order to further ensure the success of the Ir 4 r . n w 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 authorised and directed, along with the staff of the Southeast Overtown/Park West Community Redevelopment Agency ("CRA"), to negotiate with BJAMB Development Corporation of South Florida ("SAME"), 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.D0,_' 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 Projects shortfall, with funds therefor being available from the BOMB Grant. D. "The additional financing will be passed on -to the purchasers of the housing 9 8 - 865" r 98- 779 "ATTORMY cok/W2740 I The herein authorization is further =Wed to compliance with all requirements that may be imposed by the City Attonley, including but not limited to Horse prescribed by applicable City Charter and Code provisions. I If the Mayor does not sip this Replution, it shall beemc ctrective 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. 98- 779 . ..... r 'I 98- 865 A U G— 1 9— 9 8 W E D 9: 3 4 J-98-807 7/15/98 RESOLUTION NO. 9 8— 796 A RESOLUTION DESIGNATING THE COMMUNITY REDEVELOPMENT AGENCY TO DEVELOP A HOUSING PLAN WITHIN'FOUR (4) MONTHS FOR THE PROJECT KNOWN AS NORTHWESTERN ESTATES (A/K/A KNIGHT MANOR), TO INCLUDE, INTER ALIA, IDENTIFYING A NEW DEVELOPER FOR SUCH PLAN, FOR APPROVAL BY THE CITY COMMISSION, SHOULD THE CURRENT DEVELOPER FAIL TO COMPLY WITH THE PROVISIONS SET FORTH IN RESOLUTION NO. 98-585 WITHIN THE TZMEFRAME SPECIFIED THEREIN. } WHEREAS, pursuant to Resolution No. 95-853, passed and adopted by the City Commission on December 7, 1995, the City Commission allocated $4,750,000.00 in HOME Investment Partnership ("HOME") Program funding ("HOME Funds") to the Urban League of Greater Miami, 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 67" and 69"' Streets between Northwest 7t" and 10'h Avenues in the Model City target area, commonly known as Northwestern Estates ("Project"); and WHEREAS, pursuant to said Resolution, the City Commission ,.-'r 4 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 CITY COMOSSION MMTMC OP JUL 2 1 1998 Aewla l" Na 98w� h' . 10 6 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 $2,375,000.00 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 beveloper'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 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 • • 1 .o-r. j J Z). P - d t . 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 -•x 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 (12) mgnths 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, 1996, 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 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 •,...n , sufficient subsidies, reconfiguring the Project, or otherwise H Li la — 1 7— 7 73 W t JJ 7 Z 3 Z:) Y - lJ o 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 appropriate action, as needed, to protect the U.S. HUD Secretary's interest and -the integrity of the HOME Program, including terminating the Project; and WHEREAS, pursuant to Resolution No. 585, passed and adopted by the City Commission on June 9, 1998, the City Manager was authorized and directed to give written notification to the Developer That it will be afforded sixty (60) days from the date r of the Resolution to: (a),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 individual 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; and WHEREAS, said Resolution also authorized the City Manager and the City Attorney to take whatever steps are necessary to ensure the City's compliance with the recommendations of the OIG, including, but not limited to terminating the Project and 98 -- 865 r - e-lip --� recording the Statutory Warranty Deed, should the Developer fail to comply with any of the provisions set forth in' the Resolution within the time prescribed; and WHEREAS, inasmuch as the City is committed to the completion of this Project, in the event Liberty Housing Associates fails to comply with the City's requirements, the City must be prepared to complete the Project in a timely manner; 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 Community Redevelopment Agency is hereby designated to prepare a plan, within four (4) months, for the Project known as Northwestern Estates (a/k/a Knight Manor) that will result in the development of affordable housing ("Plan"), should the current develope7' fail to comply with the provisions set forth in Resolution No. specified in said Resolution, Commission, said Plan to include: 98-585, within the timeframe for approval by the City A. The identification of a new developer; B. A reconfiguration of the Project; C. A revised financing plan; c " -_P b— 1 9— 7 TS W C L 7 z S to. P - 1 F7 D. The assurance that the Project will be affordable for low and very low-income families and individuals; and E. A three (3) year schedule for the completion and occupancy of the Project. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.l PASSED AND ADOPTED this 21st day of July , 1998. JOE CAROLLO, MAYOR In aCaordance with Miami Code Sec. 2,36, since the Mayor did not indicate approval of thl$ legislation by signing it in the designated place provided, :;aid legistak);, -,ovi becomes efteCtive with the elapse of ten (10) days f m the da of Commis lcn m rega rft game, without the Mayor exerdsi ATTEST: Waite J o , City Clerk WALTER J. FQEMAN, CITY CLERK i 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 adopts& If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. p 865