HomeMy WebLinkAboutR-95-0192{
J-95-210
3/9/95
RESOLUTION NO.
95- 1.92
A RESOLUTION, WITH ATTACHMENT, AUTHORIZING
THE CITY ADMINISTRATION TO WORK IN CONCERT
WITH THE BONDHOLDERS OF ARENA SQUARE
APARTMENTS TO EVALUATE ALTERNATIVES REGARDING
THE DISPOSITION AND/OR REHABILITATION, IN
WHOLE OR PART, OF TWELVE (12) BUILDINGS ON
SEVEN (7) NON-CONTIGUOUS PARCELS IN THE
OVERTOWN DEVELOPMENT TARGET AREA (MORE
PARTICULARLY IDENTIFIED IN ATTACHED EXHIBIT
"A"), BY STRUCTURING FINANCIAL INCENTIVES TO
ATTRACT NEW PRIVATE SECTOR INVESTMENT WITH
THE SPECIFIC PURPOSE OF EFFECTING THE
CONVERSION OF ONE -HUNDRED AND SIXTY-TWO (162)
UNITS (LOCATED AT 268 NW 11TH STREET AND 275
NW 10TH STREET) FROM RENTAL TO HOME -OWNERSHIP
UNITS AND THE REHABILITATION AND RE -OCCUPANCY
OF AS MANY AS THREE -HUNDRED AND NINETY-SEVEN
(397) OF THE REMAINING UNITS; DIRECTING THE
CITY MANAGER TO IDENTIFY AND PROVIDE TO THE
BONDHOLDERS A LIST OF PROSPECTIVE FOR -PROFIT
AND NOT -FOR -PROFIT HOUSING DEVELOPERS
EXPRESSING INTEREST IN THE ACQUISITION AND/OR
REHABILITATION OF THE SUBJECT PROPERTIES,
FURTHER DIRECTING THE CITY MANAGER TO OBTAIN
FINAL APPROVAL TO EFFECTUATE CITY
PARTICIPATION IN THIS MATTER AT THE APRIL 13,
1995 COMMISSION MEETING.
WHEREAS, the severe shortage of home ownership housing units
in the City of Miami affordable to families and individuals of
low and moderate income remains; and
WHEREAS, the City of Miami can be instrumental in attracting
private sector investment to effect the conversion of one -hundred
CITY CopaWSIOK
MEETING OF
C, DIN TA I N E a ReeoIution No.
95- 192
and sixty-two (162) units (located at 268 NW 11th Street and 275
NW loth Street) from rental to home -ownership units and the
rehabilitation and re -occupancy of as many as three -hundred and
ninety-seven (397) of the remaining units; and
WHEREAS, the City Commission recognizes that participation
of the City of Miami is necessary to foster the development of
housing affordable to low and moderate income families and
individuals; and
WHEREAS, the City of Miami currently has participatory funds
in excess of $1,000,000 for housing rehabilitation available to
qualified for -profit and not -for -profit developers on a
first -come, first -serve basis;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings set forth 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 Commission hereby authorizes the
City Administration to take the necessary steps to work in
concert with the bondholders of Arena Square Apartments to
evaluate alternatives regarding the disposition and/or
rehabilitation, in whole or in part, of the subject properties,
by structuring financial incentives to attract new private sector
investment that may include, but shall not be limited to:
1. purchasing of the property, in whole or in part, by the
City; or
95- 192
-2-
2. purchasing by the
City,
or an agent of the City,
in
whole or in part,
of the
mortgage position held by
the
bondholders; or
3. restructuring the existing debt on the property
including the mortgage of the bondholders and the City;
or
4. structuring financing for the purchase of the property,
in whole or in part, by a for -profit or not -for -profit
third party; or
5. other options, including, but not limited to, a
combination of alternatives presented herein.
Section 3. The City Commission hereby directs the City
Manager to provide the bondholders of Arena Square Apartments
with a list of prospective for -profit and not -for -profit housing
developers expressing interest in involvement in the disposition
and/or rehabilitation of the subject properties.
Section 4. The City Commission further directs the City
Manager to obtain final approval to effectuate City participation
in this matter at the April 13, 1995 Commission Meeting.
Section 5. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 9th day of March 1995.
42
S PHEN P. CLA K, MAYOR
ATT ST:
/-� MATTY HIRAI , CITYK
95- 192
-3-
0
PREPARED AND APPROVED BY:
L DA K . K A SON
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
O�' 1411, k
A. QU NN Jffl$tS, TIT
CITY ATT EY
LKK:csk:X50l6
95- 192
IMIC
EXHIBIT A
I. The Property
Land:
Buildings:
Units:
Unit Configuration:
ARENA SQUARE APARTMENTS
MIAMI, FLORIDA
Approximately 5 acres in seven (7) non-contiguous parcels
12
559
Total
Two
One
Units
Bedroont
Bedroom
Efficiency
275 N.W. 10th Street
81
14
64
3
269 N.W. 1 lth Street
81
17
59
5
1212 N.W. lst Place
33
13
20
1217 N.W.2nd Avenue
33(C)
12
21
Arena Square South
228
56
164
8
233 N.W. 20th Terrace
48
48
240 N.W. 21st Street
45
3
39
3
2101 N.W. 3rd Avenue
33
8
21
4
2191 N.W. 3rd Avenue
33
33
301 N.W. 22nd Street
77
9(A)
68(13)
225 N.W. 22nd Street
27
27
222 N.W. 22nd Street
36
3
33
255 N.W. 21st Street
32
_
30
2
Arena Square North
331
23
299
9
TOTALS
559
79
463
17
(A) Includes one (1) three (3) bedroom unit.
(B) Includes one (1) unit used as a laundry.
(C) All units subject to a proposed lease agreement with a non-profit organization.
Rents: Efficiency: $265.00 per month
One bedroom: $315.00 per month
Two bedroom: $365 per month
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM 35
TO : Honorable Mayor and Members
of the City Commission
DATE : February 23, 1995
FILE :
SUBJECT : Approval of Resolution to authorize the
Administration to work in concert with bondholders of
Arena Square Apartments.
FROM : CeS REFERENCES City Commission Meeting of 3/9/95
City r
ENCLOSURES 1
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the attached Resolution, which will permit
the City Administration to work in concert with the bondholders of Arena Square Apartments to allow the
City, or agents of the City, to acquire all or part of the subject properties, and/or to engage in a public -
private venture that will result in the conversion of 162 rental units into home -ownership low-income
housing units in the Overtown area, and as many as 379 rehabilitated rental units, by authorizing the City
Manager to look into the possibility of offering certain financial incentives to private and nonprofit
developers who show an interest in acquiring and rehabilitating subject properties, whichever alterative,
or combination thereof, proves most beneficial to the City and the Overtown area.
BACKGROUND:
On February 9, 1995, the City Commission instructed staff to look into the feasibility of purchasing twelve
(12) buildings located in the Overtown area. After looking into the matter, staff has concluded that certain
alternatives for the acquisition, disposition and/or rehabilitation of subject properties, or portions thereof,
exist that were not originally explored by the Commission. More specifically, staff has been able to
establish, in meetings with representatives for the bondholders of Arena Square Apartments, that the
provision of certain financial incentives to for -profit and not -for -profit housing developers, and/or the
structuring of financing to bring in third party involvement, may facilitate the conversion of portions of
subject properties into two- and three -bedroom low-income housing units targeted for home -ownership,
and the rehabilitation of the remaining units, as originally intended, effectively addressing the housing
shortage faced by families and individuals of low and moderate income in the Overtown area.
It is, therefore, recommended, that the City Commission approve the attached resolution, thereby
providing the City Administration with the latitude necessary to examine these different alternatives and
recommend a course of action to the City Commission on April 13, 1995.
Attachments:
Proposed Resolution
q r -_ 192
Z-s- 1