HomeMy WebLinkAboutR-96-0430J-96-481
5/22/96
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RESOLUTION NO. 9 6- 4 3 0
A RESOLUTION DIRECTING THE CITY MANAGER
TO PROVIDE $363,000 IN THE FORM OF A GRANT
FROM THE SALE PROCEEDS OF EITHER OR BOTH OF
THE SAINT HUGH OAKS CONDOMINIUMS OR
MELROSE TOWNHOMES, TO THE INDIAN RIVER
INVESTMENTS, INC. ("DEVELOPER"), THE
DEVELOPER OF THE POINCIANA VILLAGE
CONDOMINIUMS, LOCATED AT 269 NORTHWEST
7TH STREET, MIAMI, FLORIDA, FOR THE PURPOSE
OF PROVIDING FINANCIAL SUPPORT FOR THE
CONSTRUCTION OF PHASE III DEVELOPMENT
("PROJECT"); FURTHER STIPULATING THAT ANY
PROFIT MADE BY THE DEVELOPER FROM THE SALE
OF THE PROJECT WILL BE RETURNED TO THE CITY.
WHEREAS, the Poinciana Village Condominiums is the first
condominium project developed in the Southeast Overtown/Park West
Redevelopment Area; and
WHEREAS, the Indian River Investments, Inc. ("Developer"), the
developer of the Poinciana Village Condominiums, has built 40 units, as part of
Phase I and II developments, which are all privately owned and occupied; and
WHEREAS, the Developer pre -sold 22 out of 24 units of Phase III
development prior to the Hurricane Andrew; and
WHEREAS, the cost of construction has dramatically risen since the
Hurricane Andrew due to changes in local Building Codes; and
WHEREAS, the entire sale proceeds of Phase III fall $363,000 short of
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CITY COMMISSION
MEETING OF
JU N 1 3 1996
Resolution No.
96- 430
WHEREAS, the Developer cannot pursue on the Phase IV of the
development program until the Phase III is underway; and
WHEREAS, the Poinciana Village Condominiums is an integral part
of Southeast Overtown/Park West redevelopment program; and
WHEREAS, on April 29,1996, the City Commission in its capacity as
the Board of Directors of the Southeast Overtown/Park West Community
Redevelopment Agency ("CRA Board") approved a request to grant a $363,000
financial assistance to the Developer for the purpose of closing a gap in the
construction budget for the Phase III development; and
WHEREAS, on April 29, 1996, the CRA Board also stipulated that
any profit made from the Phase III development will be returned to the City;
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 directed to provide $363,000 in
the form of a grant from the proceeds of either or both of Saint Hugh Oaks
Condominiums or Melrose Townhomes, to the Indian River Investments Inc.
("Developer"), the developer of the Poinciana Village Condominiums, located at
2
90- 430
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3
APPROVED AS TO FORM AND
CORRECTNESS
96- 430
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from the sale proceeds of either or both of the Saint Hugh Oaks Condominiums
or Melrose Townhomes, to the Indian River Investments, Inc., the developer of
the Poinciana Village Condominiums, located at 269 NW 7th Street, Miami,
Florida, for the purpose 'of providing financial support for the construction of
Phase III development; further stipulating that any profit made from the sale of
Phase III units will be returned to the City.
BACKGROUND:
The Community Redevelopment Agency ("CRA") recommends the approval of
the attached Resolution to provide financial assistance to the Poinciana Village
Condominiums for the purpose of closing a gap in the construction budget for its
Phase III development.
Mr. Ted Weitzel, developer of the Poinciana Village condominiums, has been
trying to break ground for the 24 units Phase III project for quite awhile. Mr.
Weitzel managed to sell nearly all units prior to Hurricane Andrew when the
cost of construction was significantly less than now. The construction cost in
South Florida has dramatically risen since the Hurricane Andrew due to stricter
building codes and sharp increases in the cost of insurance. According to Mr.
Weitzel the entire sales proceed from all 24 units fall approximately $363,000
short of the estimated new construction cost, leaving him no option but canceling
the project all together.
96-
1
430
Honorable Mayor and Members
of the City Commission
Page: 2
Poinciana Village is the first residential redevelopment in the Southeast redevelo project g P P
Overtown/Park West, often referred as a model affordable inner-
city/ downtown residential development.
On April 29,1996, the City Commission in its capacity as the Board of Directors
of the Southeast Overtown/Park West Community Redevelopment Agency
("CRA Board") approved a request to grant a $363,000 financial assistance to the
Developer for the purpose of closing a gap in the construction budget for the
Phase III development.
Enclosure
Proposed Resolution
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