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Home My WebLink AboutR-98-1209J-98-1240 12/8/98 RESOLUTION NO. 9 8 - 12 0 9 A RESOLUTION GRANTING AN EIGHTEEN MONTH EXTENSION, FROM APRIL 24, 1998 TO OCTOBER 24, 1999, TO FLORIDA HOUSING COOPERATIVE, INC. IN WHICH TO COMMENCE CONSTRUCTION OF BARCELONA PLACE, AN AFFORDABLE HOUSING PROJECT, TO BE LOCATED IN THE LITTLE HAVANA NEIGHBORHOOD AT 1025 WEST FLAGLER STREET, MIAMI, FLORIDA. WHEREAS, pursuant to Resolution No. 91-123, adopted February 1991, the City Commission authorized the City Manager to make available and disburse $288,640 in Community Development Block Grant ("CDBG") Program funding to Florida Housing Cooperative, Inc. ("FHC") in connection with the development of Barcelona Place ("Project"), an affordable housing project, to be located at 1025 W. Flagler Street, Miami, Florida, in the Little Havana neighborhood; and WHEREAS, the City Manager was directed to incorporate provisions in the deed requiring FHC to commence construction on the Project within twenty-four months from the date of fund disbursement or the property would revert back to the City; and WHEREAS, pursuant to Resolution No. 93-189, adopted March 11, 1993, a twelve month extension was granted to FHC in CITY cobMSSION MEETING OF DHC 8, 1998 Resolution No. 98-1209 which to commence construction on the Project; and WHEREAS, pursuant to Resolution No. 96-792, adopted October 24, 1996, an eighteen month extension was granted to FHC in which to commence construction; and WHEREAS, it is the Administration's recommendation that FHC be granted an additional eighteen month extension for the construction date commencement; 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 Miami City Commission hereby grants an eighteen month extension, from April 24, 1998 to October 24, 1999, to Florida Housing Cooperative, Inc. to commence construction on Barcelona Place, an affordable housing project, to be located in the Little Havana neighborhood, at 1025 West Flagler Street, Miami, Florida. Section 3. This Resolution shall become effective - 2 - 98-1209 immediately upon its adoption and signature of the Mayor.1/ PASSED AND ADOPTED this 8th day of December 1998. JOB CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the Mayor did not lnd;cite approw-'_l of this legislation by signing it in the designated place provided, becomes effective with the elapse of ten (10) day* from the date of Commi;� ATTEST: regarding same, without the Mayor exer9"to /1 WALTER J. FOEMAN CITY CLERK AND CORRECTNESS: W3137:BSS Clerk 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. - 3 - 98-1209 CITY OF MIAMI CITY ATTORNEY'S OFFICE MEMORANDUM TO: Walter J. Foeman, City FROM: Alejandro Vilarello, i rn1 DATE: March 10, 1999 RE: Corrected Scrivener's Error -Resolution No. 98-1209, adopted December 8, 1998 It has been brought to our attention that the legislation, submitted to you as Resolution No. 98-1209, adopted December 8, 1998, contains a scrivener's error as the eighteen month extension granted by the City Commission for commencement of the construction of Barcelona Place, located at 1025 West Flagler Street, Miami, Florida, by Florida Housing Cooperative, Inc. is incorrectly reflected as April 24, 1998 to October 24, 2000 instead of April 24, 1998 to October 24, 1999. The herein attachment, which is a substitute original resolution to replace the document you presently possess as Resolution No. 98-1209, has been revised to reflect the proper date. After the correct document has been executed, please forward a copy to this Office. This memorandum may be attached to Resolution No. 98-1209 so that any concern regarding the substitution of said Resolution is clarified. W293 :BSS Attachment c: Jeff Hepburn, Assistant Director, Housing Conservation Development Division Department of Community Development 98-1209 TO Donald Warshaw City Manager FROM Tomas Regalado Commissioner CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM 50 ATE : ` ovember 20, 1998 �ILEr N Y,. c� c, Discussion Item T 3 N C a REFERENCES: -21 o �. ENCLOSURES: Please place an item on the agenda of the City Commission meeting to be held on December 8, 1998. This item is in reference to Barcelona Place, a eighteen (18) unit apartment complex for low to moderate income families at 1025 West Flagler Street, Miami, Florida. 98-1zoe7 FLORIDA HOUSING COOPERATIVE, INC. 2350 Coral Way, Suite Miami, Florida Telephone: (305) 649-9750 Facsimile: (305) 649-5843 (Mailing Address 900 SW 22"d Ave. Miami, Florida 33135) November 20, 1998 Honorable Commissioner Mr. Thomas Regalado City of Miami- District 4 RE: Barcelona Place- an 18 unit apartment complex development for low to moderate income families at 1025 West Flagler Street, Miami, Florida 33135 Honorable Commissioner Regalado: On October 24, 1996, the City of Miami Commission on you petition granted an 18 month extension to Florida housing Cooperative, Inc. to begin construction on the Barcelona Place Project. The deadline to commence constriction was extended to April 24, 1998. This extension was required because the warranty deed executed by the City of Miami passing title to the lot on which the project is being developed called for the property to revert to the City of Miami, if construction was not commenced within the specified amount of time. Due to unforeseen delays in project development, FHC was not able to commence construction on the Barcelona Place Project by the April 24, 1998 deadline. However, FHC has received final plan approval from the City of Miami Building and Zoning Department, and expects to commence construction of the project by January 1999. In order to be able to close on all construction loans and contracts, it is necessary that FHC get a resolution from the City of Miami that would that would either give another extension to FHC to begin construction or in the event the reverter clause has already gone into effect would pass title to the parcels back to FHC. This revolution from the City of Miami would be needed no latter than December 1998, to permit FHC to begin construction by January 1999. We have attached a history of the project for you information. H you have any questions on this matter, please, do not hesistate to call me. We took the liberty of making this request of you, since you have supported our project in the past and have always supported developments aimed at helping low to moderate income families. Sincerely yours, Quesadau� President Florida Flousing Cooperative, Inc. (FHC) 9 —1209 Tn 1998, FHC and GNV were awarded an ARP grant for $144,000.00 from the Federal Home Loan Bank along with a construction loan for Suntrust Bank, This A" grant is for $8,000.00 a unit ,$3,000 more than the average AHP grant. To date the City of Miami has disbursed close to $1,000,000.00 in acquisition and pre -development costs, including. a few weeks ago, close to $40,000.00 drawn to cover the school board impact fees and building permits. We have also reported to your staff and board that FHC and GMN bid the project and have selected the general contractor. Your staff has a copy of the executed contract and they are currently reviewing the contract. Also, we are working with Mr. Alberto Diaz of your staff to begin to qualify buyers for units. During the bidding process bids came in higher than the amount budgeted by about $400,000.00. The average bid received was 1,750,000.00. The reasons for this overage are: a. The lot configuration will require underground parking to meet tho minimum parking requirements. The original plans did not meet parking requirements; b. The zoning requirements will require a 4-hour extension wall system, which is a lot more expensive than a conventional wall system; c. Water availability requires unexpected off sitc line adaptations; d. The building has been designated a "threshold" structure, mandating additional design, engineering, and inspection requirements per South Florida building Code. The budget problem caused by the overage is being handled in the following way: a. A sales price increase to $77,000.00. This increase In the sales price is being partially ofrsct by the AHP grant award for $8,000.00 a unit. b. The City of Miarni has additional Aulding available to use to cover the shortfall. However, procedures to attain the funding must be followed The process to attain these funds has been delayed by all tho problems in the City orMiami, Further, the City of Miami has within the last Uvo weeks lost a most valued employee, Mr. Alfredo Duran, and this will Awther delay the process as no one lum been assigned his position. Mr. Duran was the contact person regarding these funds. However, we are in constant communication with City staff and have been infbnned that these funds should be available to start construction in January. Therefore, the reasons for the delays in the project are as follows: a. Lack of securing full Surtax allocation during_1996, (one year delay)- b. Problems with the architect and rehiring of a new architect; rejection by City Building Dept, of original plans; complete redesign of the development (nine months delay) d. The cost overage caused by uteeting all zoning requirements, which increased the construction costs. (three months delay) Page 2 of 3 . For the reasons stated above, we are requesting an extension to commence construction to April 1999. We arc requesting this five -month extension, though we expect to commence construction by January 1999, to assure that any delay by the City of Miami in disbursing the additional funding is covered If Nye are granted this extension, it will allow us to recover frorn the twenty-three month delay caused by the above described problems, and finish the construction one year later than the d tto scheduled on the 1997 Surtax Contract. We are also requesting to verify that the sales price increase to $77,000.00 requested in the prior meeting has been approved; if not we are requesting to discuss this issue before the affordable housing board. Page 3 of 3 j fhti . .j J-96-1327 10/24/96 RESOLUTION Nog 7 S c2 A RESOLUTION GRANTING AN EIGHTEEN (18) MONTH EXTENSION, FROM OCTOBER 24, 1996 TO APRIL 24, 1998, TO FLORIDA HOUSING COOPERATIVE, INC., A NOT -FOR - PROFIT CORPORATION, IN CONNECTION WITH THE COMMENCEMENT OF CONSTRUCTION OF THE AFFORDABLE HOUSING PROJECT TO BE LOCATED AT 1025 WEST FLAGLER STREET, MIAMI, FLORIDA. WHEREAS, pursuant to Resolution No. 91-123, adopted February, 1991, the City Commission authorized the City Manager to make available and to disburse $288,640 in CDBG Program funding to Florida Housing Cooperative, Inc., for the acquisition of three (3) parcels of vacant land located at 1025 West Flagler Street, Miami, Florida, in connection with the development of an affordable housing project in the Little Havana neighborhood; and WHEREAS, pursuant to Resolution No. 91-123, the City Commission instructed the City Manager to incorporate provisions in the deed which would require that full title to said parcels shall revert to the City of Miami, if building permits are not obtained and construction on the proposed housing project was not underway within twenty-four (24) months from the date funds were disbursed by the City; and WHEREAS, pursuant to Resolution No. 93-189, adopted March 11, 1993, a twelve (12) month extension was granted to Florida Housing Cooperative, Inc., to commence construction on the project; and C CONIIVIISSION ETING O 0 1996 oiu o. WHEREAS, Florida Housing Cooperative, Inc., requests an eighteen (18) month extension of this deadline to commence construction on the proposed 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. An eighteen (18) month extension, from October 24, 1996 to April 24, 1998, in which to commence construction of an affordable housing project to be located at 1025 W. Flagler Street, Miami, Florida, is hereby granted to Florida Housing Cooperative, Inc. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 24th day of October, 1996. ATTEST: i WALTER J. CITY CLERK PREPARED AND APPROVED BY: LINDA K. KEARSON ASSISTANT CITY ATTORNEY W1331:CSK 2- /-J • OLLO, MAYOR APPROVED AS TO FORM AND CORRECTNESS: i A. -OUNN JONES; 111 CITY ATTORNEY a �UVJ