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HomeMy WebLinkAboutR-95-0561A RESOLUTION, WITH ATTACHMENTS, RELATING TO PURCHASE OF LAND FOR THE DEVELOPMENT OF APPROXIMATELY ONE HUNDRED THIRTY (130) UNITS OF AFFORDABLE HOUSING ON THE OLD UNITED WAY PROPERTY LOCATED AT SW 10TH STREET AND SW 2ND AVENUE, MIAMI, FLORIDA, BY THE DOWNTOWN MIAMI COMMUNITY DEVELOPMENT COALITION (A NOT -FOR - PROFIT CORPORATION); AUTHORIZING THE CITY MANAGER TO SECURE TWO (2) APPRAISALS TO ESTABLISH THE FAIR MARKET VALUE OF THE SUBJECT PARCEL FOR THE PURPOSE OF PROVIDING CITY FINANCIAL ASSISTANCE TO THE DOWNTOWN MIAMI COMMUNITY DEVELOPMENT COALITION (PROJECT SPONSOR) FOR THE ACQUISITION OF THE SUBJECT PARCEL; AUTHORIZING THE CITY MANAGER TO REALLOCATE AND DISBURSE FUNDING FROM UNEXPENDED COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FUNDS, FROM CDBG PROJECT ENTITLED "CITYWIDE SINGLE FAMILY HOUSING REHABILITATION LOAN PROGRAM REVENUE ACCOUNT" TO "CDBG PROJECT LAND ACQUISITION", IN AN AMOUNT NOT TO EXCEED $825,000, TO THE AFOREMENTIONED CORPORATION TO DEFRAY THE COST OF SITE ACQUISITION AND $25,000 FOR OTHER COSTS ASSOCIATED WITH SITE ACQUISITION, SUBJECT TO CERTAIN TERMS AND CONDITIONS AS HEREIN SPECIFIED, AND TO SUBMIT TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AN AMENDMENT TO THE 21ST CDBG FINAL STATEMENT PROVIDING FOR SAID REALLOCATION; ESTABLISHING $412,500 OR FIFTY (50%) PERCENT OF THE CITY'S ACTUAL FINANCIAL ASSISTANCE TO THE PROJECT AS THE AMOUNT TO BE REIMBURSED TO THE CITY BY THE PROJECT SPONSOR; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ALL THE APPROPRIATE LEGAL DOCUMENTS REQUIRED TO CARRY OUT THE DEVELOPMENT OF THE SAID AFFORDABLE HOUSING PROJECT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY AND SUBJECT TO CERTAIN TERMS AND CONDITIONS AS HEREIN SPECIFIED. ATTACHMENT(S) CONTAINED -1- 1C= COMMISSION XEETING OF J U L 1 3 1995 i Revolution No. �� 95- 561 WHEREAS, in the City of Miami there exists a severe shortage of affordable housing for families and individuals of low and moderate income; and WHEREAS, the City Commission recognizes that participation of both the public and private sector is necessary to foster the development of housing affordable to low and moderate income families and individuals in the City; and WHEREAS, over the past eighteen (18) months, the Downtown Miami Community Development Coalition (Sponsor) has been working with the City Administration and the Downtown Development Authority in connection with the development of a proposed 130 unit affordable rental housing project planned for development on a parcel of land located at SW loth Street and SW 2nd Avenue, Miami, Florida; and WHEREAS, in July of 1994, through Resolution No. 94-509, the City Commission approved and granted development rights for said parcel to the Downtown Miami Community Development Coalition and upon acquisition by the City, agreed to convey the subject parcel to the Sponsor for the development of the Project, subject to certain terms and conditions; and WHEREAS, the City Commission further authorized the City Manager to commence negotiations for the acquisition of the subject parcel of land known as the Old United Way Property, located at SW 10th Street and SW 2nd Avenue, Miami, Florida, (Property) in an amount not to exceed the appraised value, for final review and approval by the City Commission; and WHEREAS, through Resolution No. 94-509, the City Commission also conditioned the designation of the Downtown Miami Community Development Coalition as project sponsor, subject to the submission within twelve (12) months from the date of this action for City Administration verification and City Commission review the final project site plan, unit plans and specifications, in addition to, verifiable evidence of firm commitments for construction and permanent financing for the project; and WHEREAS, to date, the Downtown Miami Community Development Coalition has secured an allocation of Low Income Tax Credits from the State of Florida that will provide for $6,000,000 in equity and $201,000 through the State of Florida's State Apartment Incentive Loan Program; and WHEREAS, the Downtown Miami Community Development Coalition has also secured approximately $1,850,000 in project financing from Metropolitan Dade County in connection with the proposed - project; and WHEREAS, the Downtown Miami Community Development Coalition has also secured a preliminary commitment from City National Bank for construction financing in the amount of $2,312,400 and permanent financing in the amount of $1,245,000 for the project; and WHEREAS, the City of Miami and the Downtown Miami Community Development Coalition are interested in moving forward with the Sts acquisition of the subject parcel, subject to securing two (2) appraisals which would substantiate the fair market value for an amount not to exceed $825,000; and WHEREAS, funding in the amount of $825,000 is available from unexpended Community Development Block Grant Program funds, from CDBG_ Project entitled "Citywide Single Family Housing Rehabilitation Loan Program Revenue Account" for transfer to "CDBG Project Land Acquisition", to defray the cost of site acquisition and other related cost in connection with the proposed affordable housing project; and WHEREAS, in an effort to move the construction of the proposed housing project forward, the City Administration recommends providing city financial assistance to the Downtown Miami Community Development Coalition for the purpose of acquisition of the parcel of land known as the Old United Way Property, located at SW loth Street and SW 2nd Avenue, Miami, Florida in an amount not to exceed $825,000 or the average of two (2) appraisals secured by the City for said parcel, subject to certain terms and conditions; 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. -4- 95- 561 Section 2. The 'City Manager is hereby authorized to reallocate and disburse unexpended CDBG Program funds, in an t of to exceed $850 000 from CDBG Project entitled amoun As , "Citywide Single Family Housing Rehabilitation Loan Program" to "CDBG Project Land Acquisition" to the Downtown Miami Community Development Coalition, to defray the cost of site acquisition and other costs associated with site acquisition, and to submit to the U.S. Department of Housing and Urban Development an amendment to the 21st Year CDBG Final Statement providing for the reallocation of said funds as set forth herein. Section 3. The City Manager is hereby authorized to secure appraisal services for two (2) appraisals, in addition to an environmental assessment report of the property prior to the acquisition of the subject parcel by the Downtown Miami Community Coalition. Section 4. Said acquisition funds to be provided to the Downtown Miami.Community Development Coalition in an amount based on the average of the two (2) appraisals and not to exceed $825,000 in the form of a first mortgage lien on the subject property. Subordination of said lien shall be subject to review and acceptance by the City of any future financing provided for the development of the proposed affordable housing project. Section 5. The City Commission hereby establishes $412,500 or fifty (50%) percent of the City's actual financial assistance to the project as the acquisition amount to be paid to the City by the Downtown Miami Community Coalition, commencing when the project is refinanced or sold. The said amount to be paid to the City over a fifteen (15) year period at a rate of three (3%) percent. Section 6. The City manager is hereby instructed to place a mortgage on the subject parcel for the full amount of the City's assistance at the time of closing. At the time that the project sponsor has completed construction and secured the appropriate certificate of occupancy, the City will discount the _ mortgage to an amount equal to fifty (50%) percent of said assistance. Section 7. The City Manager is hereby authorizedl to execute all the appropriate legal documents, in a form acceptable to the City Attorney, required to carry out the development of said affordable housing project by the Downtown Miami Community Development Coalition. Section 8. This Resolution shall become effective immediately upon its adoption. The herein authorization is further subject to compliance with all requirements that may imposed by the City Attorney including but not limited to those prescribed by applicable City Charter and Code provisions. -6- 95- 561 PASSED AND ADOPTED this Ath day of July, 1995. ATTE : WALTER"EMAff-, CITY CLERK NET REVIEW AND A 7PRO FRANK CXSTANED9, DIRECTOR DEPARTMENT OF NET PREPARED AND APPROVED BY: LIN A KELLY RSO ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: A. QU NN J N , III CITY ATTO N 1 ASSET MANAGEMENT/CAPITAL IMPROVEMENT REVIEW: DU DO ROD IGU , DIRE OR OFFICE OF ASSET MANAGEMENT AND CAPITAL IMPROVEMENT -7- 95- 561 ` The New`World Center Foundation, Inc. d.b.a. )Downtown Miami Ciommilnify DevelglgmentCoafi on A not -for -profit housing and economic development organization Ofim Directors Wifredo Gort, Chairperson Marwin Cassel Lynn B. Lewis, Vice ChairpersonE I V E 0' Robert Sechen Jeffrey Bereow, Secretary, R Eum Richard Kuper Joe )+illoy, Treasurer Luli Landis J U N 16 1995 Patti Allen Peter Andolina COMMUVOTY June 16, 1995 LpEyELOPMENTJ Frank Castaneda, Director Ni'iami Community Development Department :::....300 Biscayne Blvd. Way 4th Floor, Manf4 FL 33131 Dear Frank: In July 1994, City Commission adopted the attached Resolution (Exhibit 1). I am pleased to inform you that the Downtown Miami Community Development Coalition (the "CDC") has been allocated Low Income Housing Tax Credits by the State of Florida that will provide for $6,000,000 in equity and $201,000 from1he State Apartment Incentive Loan program.. The CDC is now prepared to proceed with the purchase of the old United Way parcel located at SW loth Street and 2nd Avenue. The acquisition of this property will allow the CDC to proceed with the construction of 130 units of affordable housing. Also attached are the following exhibits as required by the above Resolution. Specification, Site Plan and Unit Plans for the 130 unit affordable housing development (Exhibit 2) Demonstration of construction and permanent financing as provided by City National Bank (Exhibit 3) In addition, -I am providing you with a copy of the contract of Purchase and Sale with the United Way (Exhibit 4), together with the assignment of the purchaser's rights to the CDC. Further, I have included an Income and Expense proforma for the project and Sources and Uses of Funds statement (Exhibit S), so you can see the various of funding sources that are being used to accomplish this project. 25' SE 2nd Ave., Suite 828 Telephone 305-371-9116 Miami, FL 33131 Faxphone 305-371-3966 95- 561 The most expeditious way to accomplish the acquisition of the property would be for the City to allow the CDC directly to purchase the property in accordance with our current contract of Purchase and Sale. We do have a letter appraisal (Exhibit 6) demonstrating that the property value is -not less than that which we are currently offering. We will obtain two additional appraisals on the property verifying the fact that the property is worth at least $825,000. The copies of,these appraisals will be provided to the City for your files. We would not proceed to closing unless these additional two appraisals have demonstrated that the property has a market value of at least $825,000. Further I would suggest that you incorporate the following two conditions within the Resolution allowing Ihe CDC to purchase the property. 1. Should active construction not commence on the site within two years from the date of the forthcoming July 13, 1995 Resolution, the property would revert to the City of Miami. 2. That the property lie restricted for use as affordable housing, again with a reverter for breach. I would be prepared to recommend to the CDC Board that it contractually commits (perhaps as a junior mortgage in favor of the City) to utilize the CDC's net cash flow after any refinancing of the project at the end of the initial tax credit term (i.e. 15 years) to repay what would be cast as a City $412,500 loan to the CDC and that actually "converts" the $825,000 grant you committed in Resolution No.94-509 into a fiscal return to the City. Such money is of course in addition to the benefit of having 130 units of affordable housing, plus the tax revenue therefrom. . These elements will assure the City that construction does proceed on time and the City will receive repayment of the money that it has provided the CDC for purchase the property. Should you need any additional information, please do not hesitate to contact me. Sincerely, Richard L. Fosmoen Encls. RLF/dk cdc\wWrank.sam to/ 5_ 561 June 10, 1995 WEST BRICKELL AFFORDABLE APARTMENTS DEVELOPMENT COST PROFORMA USES Land Land Extension Fees Architect Engineer Survey Environmental/Solls Water & Sewer Connection Fees Legal Insurance Taxes Title & Recording Finance Fees Inspection Appraisal Accounting Tax Credit Fees Construction Interest Marketing Miscellaneous Construction Costs Developer's Overhead Developer's Fee Total Uses 130 units TOTAL $825,000 $15,000 $150,000 $50,000 $4,000 $8,000 $170,060 $100,000 $42,000 $15,000 $65,000 $64,000 $10,000 $10,000 $33,000 $70,000 $310,000 $50,000 $50,000 $7,400,000 $300,000 $380,000 ,$10,_121,000 ,$6;000,000.-.... , $850,000 $1,245,000 $1,000,000 $201,000 $825,000 $10,121,000 95— 561 ,z* ' June 10,.1995 130 Units WEST BRICKELL AFFORDABLE APARTMENTS OPERATING PROFORMA 1996 less:1994 1995 Max. 1995 ProformaAnnual (A) ' g• Units Gross Rent LIM, Allow Net Rent Not Rent Insoma Efficiency 20 $312 ($64) $268 $195 $46,800 (® 40% OF MEDIAN) 1 bN i ba 6 $335 ($68) $277 $277 $19,944 (® 40% OF MEDIAN) i. br/ i ba 91 $602 ($58) $444 - $444 $484,848 (® 60% OF MEDIAN) 3602,66 1$ $696 ($76) $621 $616 S96,240 (0 60% OF MEDIAN) 130 $647,532 Lou. Vacancy 6% ($33,313) Plus: Other Income ($12 per unit/mo) $18.72D Blfective Gross Income $632,939 Lees: Operating expenses $3,000 per unit ($390,000) Less: Replacement Reserve $200 per unit AMM Net Operating Income $216,939 Debt Service -1 at Mortgage $i,245,000 ® iox% K ($130,726) -2nd Mtg SAIL $201.000 0 3.2609, ($8,633) -2nd Mtg Surtax $1,000.noo W.6.059% �450.59ot . Remaining Cash Flow $29,092 ..Debt Service Coverage 1.165 x t (A) Based on 1995 Median Incomes for Dade County, and 411i94 utility allowances. 95- 561 1110 + IMN NMl/YulYt Mta 'M _-_ N port r T t1.Nr1.1. IN•Q .C.,.. ..h Ir nr t 111.1 n. Ilf n. IN n. L_ _ 1.111 A. NnNll i 1./N n. Inwq 11 N/ 1 rw ylr• ICI nr 11� ni NYMM nra/a 11 Innll rtr NKY 1 rn/1 1prNnl i1N IwK /r Ir 11 of 1/n. 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' �� " ^$f 11 .� e�c,t.VLoSt% iNsbvj�• .. .. lwuk *pr MAtlrtdt, N - uw, � G 1�� �Sw1� ie priaoke, dhorlei awe+�trlpa�nt Inc Of fit/v a "m�' w 4�Pc�4 dr! + r ley IJ Jktwits MM J**nIL vR 091 inff;41 #oq �r ocEt+�it 1k�brta t1AfA �l ��btl`1 pt�mpq a� ehatrtr pe�ah�b(1�1 ¢� lad jtt�tr ie� ttnd .y ioq- 7. 7 Zt_. r pub: s�NcH • t tlN3° tMAlA ' ' ((iA` kto�ttialt\ ttM�pKitirii; "�r Fv�iaarfdiM Oro hoa i piirt ! In, or W �R Oa>s(�1 i diaorw(Ati6mmftbwd ttli1" 04 #dtt prawjd tnu t wdr1aW. A1WM ref t"Ff (ltM fflW lr (4 CVITrJjfnd td 'VAF.ia-lsji 95-- 561 k� } ON OF MATERIALS CON'T ,f14Ji'? TS CIS: CAM ICS: i 1' • AtM D6ti'Y>QWAYS: 40*0779'- W width �ZZ- UM f4t till _I-1 4 sr*4e ; WCiMc" �! nafaelcf M4W6l wc6tib 01+ + k %idth (tag -t WAL&W "�^ t Ihlclane�+ `i-e0. 3vr{c4 wally *Wh�; aWLkritl CAWd I (dWj !!! �rilil • ttw1A L!A•- dSW •. Choelc wafts /V f1'iSfiT14 UffitonMERTS; It WIHOh 0M& IMpwV1*#dL1 dot dtun6ed dlewherr, Including Iron" Juck of unwual `mdlns drdlnoxf 4ftvCf +rts. "10.And#, tall/n/1, end acctuoryirraren+ru.) MoPto _ ' LAM AP121 a, �tii MAD US Topsoil ,*��. 1hi (bolt! • i�llda yudr. leltcar yard to + - •re06cittnd taain building. UWnO (U"d i►A 146j� twit YUd ,"� 00 51side yudA 5oq2gQ • W tat yud •„•'`z229t2 _ rusting: tl a Ind !tt Ahdtkq 0a wbfir, ef tbllarw: „. + • ,° �tti►d! trt+tl declduaw iA -! cdiipet . X „evapoc� tree. ,.,It> io 1� '.13ABO •.�:,, ,,.: U dgw;t a tfo"t daciduotw, _...12_ to ��.� �..�_. i�ra fsoea thtabt, to _ - >3�®. w�6•f awo t 011 deciduous, 'to ' YktaA, �•rcar — —. ,• � • �;.,.,, MtxUtAhl•pv�klttQ thwbs, doalduo�i, -...�� rWttb� dbslduoue .. to iD CAZ'It�t�: TiJI I:khl it Lhu b4 idMunoa by tha tr�tNre o� tna btrflda, of eponscttRnd/t�t U,e prcpo titbttea�e it 1h4 i!►tia is t ow1116 wha Downtown Miami Community Dev. Coal itior Itprd Fosmoen, Ex cutive Director beta ��� Mute.. 2l a 0�9a ' ' stptienuo- �' ,,., Sip�hue � • r .. Fortune Constructio? Company :3 : J. r jf r . 1 t W N10.3001 E d OBSCRUr"ON OF 1 tAT7ERW. VA NO -"36-I s91 _ 95-- 561 x2 25 West Flagler 5tteel, Miami . Flotwa 3:1 i:s0 t'elephotie (3051 577-73:13 ' P.O. Box025620, Minim. llu. 310'11•5620 Telex *519215' CITNAHANK MIA EXHIBIT 3 Intl Telex ' 153168" CNBM (IT C ty National Bank December 15, 1994 West Brickell Apartments, Ltd. c/o Downtown Miami Community Development Coalition 25 S.E. 2nd Avenue Miami, Florida 33131 Re.' First Construction Loan Mortgage in the sum of $2,312,400 and Permanent Mortgage in the sum of $1,245,,000 for Construction of Apartment Complex containing 130 units at N.E. corner of S.W. 10th Street and 2nd Avenue, Miami, Florida and legally described on Exhibit A. Gentlemen: This letter will serve as.; our commitment, subject. to compliance• with 'legal lending 'limit 'reg111ations;'' to ' g"r'a'tit to West Brickell Apartments, Ltd., a Florida limited partnership ("Borrower"), a. Construction and .Permanent loan to be secured by a first mortgage on the above referenced property. We shall be referred to as "Bank" or "Lender" throughout this commitment. This loan will have the following terms: `1. Amount: $2,312,400 Construction loan to be converted, pursuant •tol. the- ..terms of this commitment letter; to' a' Permanent loan in the sum of $1,245,000. 2, Term: Construction shall have been completed in compliance with all applicable ordinances, laws and regulations, and the approved plans and specifications, within seventeen months from the date of closing and shall mature on the eighteenth month from the date of closing ("Construction Phase"). Provided construction is completed within said period and all other terms of this commitment and the loan documents are satisfied, the Note, upon conversion to the "Permanent Phase" shall mature fifteen (15) years thereafter. 3 Interest Rate: A. Construction Phase: The rate of interest during the Construction Phase shall be One (1%) percentage poin 95- 561 SENT BY AEWHOUSENG-ASSET MGMT' 7- 5-85 ; 13:42 ; 1%W wouL RYiakeil ap&rtmantas, Ltd. Cecamber iS, 19gi Fags Two CITY Of MIAM1-i 3058581707 aver the Basra late of City National Bark of Florida ("Note Rate") . The Sass Bata is dwf Ined as the interest rate aia from tiri4 to time announurwi Ly City National Bank, ot: the discretion of City National Bank. The Ames Rate is neither tired to any external rate of interest or index nor does it necessarily reflect the lowest rats of interest actually charged by City National bane to any particular class or category of its customers. Interest shall be 0610014t.ad an tho basis of a 260-day yoo r, but a intersect shall ac erlin and be payable for the actual number of days in each month. The rate of interest shall be adjusted daily so that when such as'se Rate shall change, this Note Rat* to be paid by burrower shall change effectivo an of the day of tho *hang* in sueh Rase W A . it. P=nnent.._Phase►: The rate of interest and nothad of repayment during the Permanent Phase and the amortization shall be determined, at yank's option ass followss a) A fixed rate of interest of 9,965% per annum with equal monthly payments of principal and interest based upon a thirty --year amortimationi or, b) A fixed rate of interest at 10.5olt pair annum with monthly payments of interest only until maturity. Vnder tooth nt tho foregoing options interest shall bw 041culateed on l.tsts basics of a 365—clay year. Bank shall hake this determination by notifying they Borrower in writing, no later than 10 days prior to conversion to the permanent Phase. If Rank rails to notify the Borrower of its. determination then monthly parserta of interest only shall hn desa and payable during the Permanent Phase at the rate of 10.31 per annum. 4. Payments of Construction Drags: Funds for construction of the improvements are to be disburbed on o pro-rsata basis, betusan sank, Metropolitan Dada county HanA1 arse Grant and the Florida HneiAinq Finance hge=y (1PFHFAN) calculated no follows': Dads Country Homeless Trust Grant 650,000 or IS - 19% r"FA Print: i0ft1 8 400,000 or 5 , 65%. Banks Const3rUction Loan $ 2,313,400 or 50.03 3rd Mortgage Subordinated Financing $ 11069,600 or 22.03 �� x; SENT BMEMOLSING-ASSET MGNT; 7- 5-05 13:42 CITY OF MIAMI 3058581707 West Brickell Apartments, Ltd December 15, 1994 %W Page Three AS each draw request is raouivead by Bank, properly certified by Borrower, architoet and the inspecting engineer, the Florida mousing Finance Agency and Metropolitan Dada County shall each la nadiatisly dopes ;t its pro-rara portinn of the draw request with Bank, so that the entire draw request can be funded by Bank. Varrcwer shall, at closing on the Construction phase, fund as an equity contribution the sun of S3,558j000., of which the BUM of $160,000 shadll be deposited in an interest bearing account with ]sank, am an, interest reserve (as Aescrilseo in Paratgraph 7 hereof) . In addition, the Bnrrnwkr ahAl 1 contribute the additional sum of $593,000 upon completion of 501 of the improvements, which funds shall he used towards payment of construction Costs. At maturity of the construction phase Borrower shall makes a principal payment an amount which shall reducer the outstanding principal balance to $1,245,o00. S. Repaymert: During the Construction phase, payments of interest only, monthly, commencing one month from the date of closingqs During the Permanent Phase repayment shall be deterninad in the manna= not Earth in paragraph 3(b) of this i✓ come ttteent latter. 6. Pro -payment Penaltye There shall be no pre -payment penalty during the construction Phase, I?ut111y the purloely uitl. i'i oug there shall be pro -payment penalty, the amount of which is to ba Agreed upon at: closing on the construction Phase. 7. Interest Reserve: Borrower shall, at cloying, depooit till sum of 0100,000 with Bank in an interest bearing account, for the purpose of astabliehing a reserve (0'interest reserve") for the payment of interest during the Construction Phase. Bank ahall be entitled to withdraw the monthly interest payments from the interest reserve on the date interest payments are dues, C%vr tine payment or i:itu.-awt. ]Borrower shall execute such uuthori2ationss as Bank may require in order to allow the Bank to make said d trout payments from the interest reserve. At such time as all funds in the interest reserve have been used, Borrower snail make the monthly payments from its separate funds. a. Commiteaent pee: We are to receive a ccmmitwment: fee in the sum of $23,124 for the Construction Phase and a dommitment fee n the sun of $17, M for trie Permanent Phase. The fete: for t e Conet,ru*tion rbane shall be pay6bla at alasing of t Constructing loan. In addition Borrower, at closing on t Amw Construction Phase, shall pay the :refs of $6, ass towards th ,. l 95-- 561 'tk':7, 44E. West Brickell Apartments, Ltd. December 15, 1994 Page Four commitment fee for the Permanent Phase with the balance being paid simultaneously upon conversion to the Permanent Phase and as a condition to conversion to the Permanent Phase. This payment shall be deemed earned upon receipt and •shall not be refundable even if Borrower does not, for any reason, other than Lender's default, convert the loan to the Permanent Phase. 9. Borrower: West Brickell Apartments, Ltd., a Florida limited partnership. 10. conditions Precedent to Conversion to Permanent Phase: A. The -Bank shall have no obligation t6'convert•thi6 Loan from the Construction Phase into the Permanent Phase unless Borrower shall have tendered to the Bank in current funds, a principal payment in an amount which will make the Permanent Phase $1,245,000. B. The Bank shall have no obligation to convert this Loan from the Construction Phase into the Permanent Phase unless the Loan at the time of conversion is in good standing and free- of; ail, defzmlts.. C. The Bank shall have no obligation to convert this Loan from the Construction Phase into the Permanent Phase unless all of the proposed improvements, contemplated by this commitment, shall have been completed in their entirety and the Bank shall be furnished .with Certificate(s) of Occupancy and such other evidence as it may require to establish that the improvements and their intended use comply with all applicable zoning and ---other requirements of governmental •agencies''having jurisdiction thereof. In addition Borrower shall furnish Bank with the Contractor's final affidavit showing that the goods, labor and materials furnished to the job have been paid for in full. D. The Borrower may elect not to accept. the permanent funding as set forth herein by notifying Lender, in writing, no later than ninety (90) days prior to the expiration of the Construction Loan Term. - E. The Bank shall have no obligation to convert this oan from the Construction Phase into the Permanent P se. unless all improvements have been completed accordin 95- 561 1 West Brickell Apartit,.:nts, Ltd. December 15, 1994 Page Five the Plans and specifications approved by Bank and have been certified free of structural deficiency. F. The Bank shall have no obligation to convert this Loan from the Construction Phase into the Permanent Phase unless Borrower is current and in good standing under the "FHFA Loan". G. The. Bank shall have no obligation to convert this Lain from the Construction Phase into the Permanent Phase unless Borrower has paid the balance of the Permanent Commitment Fee in the sum of $31,125. 11. Collateral: A first mortgage lien on the real property described on Exhibits A together with all improvements to be constructed on the property, a security interest in all personal property situated on•the property and owned by the Borrower and a collateral assignment of all rents and leases and profits derived from operations'of the improvements. 12. Purpose: To construct improvements containing 130 residential units according to the plans submitted to Bank. Recreational amenities shall include a recreation/community. room and r, laundry • room.. The • •prope�rtar 'will " be d'esi griated for "low income" families according to the HUD guidelines. 13. Expenses: Whether or not the transaction contemplated hereby closes, the Borrower agrees to pay all of the normal disbursements, costs, and fees of the Bank and the Borrower involved in this transaction including but not necessarily limited to, title expenses (.including search and reinsurance charges), mortgagee title insurance premiums, surveys, recording costs, documentary stamps, intangible taxes, charges for plan and construction cost analysis and verification, inspection and disbursement fees (if applicable), appraisal fees, certification of improvements, and any and all ,other additional expenses or additional requirements• reasonably imposed by the Bank, the Bank's counsel or the Title Company (as hereinafter defined) collectively, the ("Expenses"). The Expenses shall be paid at the Loan Closing, if the transaction contemplated hereby closes, or within 10 days after request for the payment thereof by the Bank, whichever is earlie�. except for those Expenses which are not ascertained as of e Closing, which will be paid within 10 days after request qpr the payment thereof by the Bank. In addition, the Borro L 95- 561 4 West Brickell Apartments, Ltd. December 15, 1994 Page Six agrees to pay to the Lender's counsel, as part of the expenses, a fee in the sum of EIGHT THOUSAND FIVE HUNDRED AND 00/100 DOLLARS ($8,500.00) for its services in connection with the preparation of this commitment letter, (ii) the preparation of the Loan Documents, and (iii) the closing of the Loan (the "Lender Counsel Fees") plus related disbursements ("Related Disbursements") customarily charged by the Lender's counsel (including without limitation, charges for courier or other express deliveries, photocopies, and long distance telephone calls). In the event the Borrower accepts this Commitment Letter, but the loan is not closed or disbursed due to title problems or for any other reason other than the willfault default by the Bank hereunder) the Borrower's obligation for the Expenses shall survive the termination of'this Commiment Letter and all expenses incurred by the Bank, including, but not limited to, the expense of recording documents and the Bank's counsel fees plus 'related disbursements, shall be reimbursed to the Bank by the Borrower within ten days after request therefor by the Bank. 14. Loan Allocation: Attached hereto as Exhibit B is an estimated allocation of the permitted application of the loan proceeds. The final allocation -of- the loan proceecds..wilj be in the: •form . `of a' revised-coristruction budget approved by the Bank or its designated inspecting agent. 15. Standard Conditions: Attached hereto as an Exhibit are standard conditions, which are considered as a part of this commitment letter as if fully set forth herein. The mortgage is to contain, in addition to the provisions required by the Bank, that the Bank shall be furnished annual financial statements on Borrower within ninety (90) days of Borrower's fiscal year end and shall further have a provision that upon a sale of the property the Note and Mortgage, at the option of Bank, shall become due and payable. Among other conditions, we will require the following prior to closing the Construction Phase: a. Proper evidence of zoning that the property is zoned for its intended uses. b. Prior to closing, Lender must receive a satisfactory curre appraisal of the Mortgaged Premises expressing an opinion Market Value acceptable to Lender based upon completion of t improvements and a stabilized net operating income. T h � i 95- 561 West Brickell Apartments, Ltd. December 15, 1994 Page Seven Lender must arrange for the appraisal and engage the appraiser. The appraisal must be ordered directly -by the Lender and must conform to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and the related rules and regulations of the Office of the Comptroller of the Currency (the OCC),.12 CFT Part 34, effective August 24, 1990, as amended. The appraisal, including without limitation, the appraisal methodology and the conclusion(s) of Market Value, shall be subject to Lender's review and approval. All appraisal costs and fees shall be paid by Borrower, and Borrower hereby agrees to immediately pay or prepay such appraisal costs or fees upon the request of Lender. C. Borrower shall provide Bank with a title insurance policy with a liability limit of not less than the principal amount of the loan insuring the Mortgage to Bank as a first lien on the good and marketable fee simple title to the Mortgaged Property and issued by a title insurance company.(with co-insurance or re- insurance with direct access agreements as Bank may require) in such forms, amounts and by such title insurance companies as shall be satisfactory to Bank. The title insurance policy shall be subject only to such exceptions as shall be approved by, and shall contain. such endorsements, as, may -be •required -by 7• Bank I's'courisel•,' subject• to Borrower's right to transfer a lien to security in accordance with Florida Statutes 713.24 so as not to affect. Bank's first lien on the good and marketable fee simple title to the mortgaged property. d. Borrower shall provide Bank with a title survey of the Premises by a licensed or registered land surveyor who shall be _accepted by Bank at the time of execution of the Commitment .Letter, certified to Bank and the title insurance. company, which shall show a state of facts in form, scope and substance acceptable to Bank, including but not limited to, an adequate and accurate legal description, interior lot lines, if any, the location of. all adjoining streets, gores and overlaps with adjacent properties, the location of all improvements, on the Mortgaged Property, location of utilities, elevations, high water marks, easements and rights -of -way, whether of record or apparent, ingress and egress to and from the Mortgaged Property and natural and constructed objects affecting the Premises and showing any encroachments and/or discrepancies with any recorded instruments or existing boundary markets and shall contain a calculation of the amount of land included in the survey. II 1 . e. Borrower shall provide Lender an original, paid -up fire an extended coverage Hazard Insurance Policy with Plate Glass 1 95- 56,1 40SIV West Brickell Apartments, Ltd. December 15, 1994 Page Eight endorsement in a minimum amount sufficient to cover one Hundred percent (100%) (before co-insurance) of the' full replacement cost of all structures on the Mortgaged Premises, together with all fixtures, equipment, chattels, and personal property owned by Borrower and installed therein or appurtenant thereto, or otherwise attached to and a part of the real estate. If the Mortgaged Premises are in a Special Flood Hazard Area flood insurance must be provided in an equal amount to the lesser of the outstanding principal balance of the Loan or the maximum coverage available under the National Flood Insurance Program for the particular type and location of Property to be mortgaged. In addition, Borrower shall maintain standard form Public Liability Insurance covering the Property in an amount acceptable to Lender. f. Borrower shall provide Bank with an opinion of Borrower's counsel in form, scope and substance satisfactory to Bank and Bank's counsel. Said opinion shall include among other provisions: that the execution and delivery of the Loan Documents have been duly authorized, and that the same are valid, binding and enforceable in accordance with their terms and do not violate or contravene any statute or contractual.. restrictionbindingon.-Borrower. 9. Simultaneously with closing on the loan with the Bank, Borrower shall close on the 11FHFA Loan" in the sum of $400,000 with the Florida Housing Finance Agency, $825,000 grant from City of Miami for purchase of property, and a $850,000 grant from Dade County Homeless Trust, proceeds of which shall be used to pay a portion of the costs of construction. The FHFA Loan shall be subordinate and inferior to the loan described herein. h. Copies of the building permits. i. Receipt of.a signed copy of the contract for construction of the improvements between Borrower. and a licerised General Contractor, acceptable to Bank, for a fixed price (the amount of which shall be subject to Bank's approval). Borrower shall also provide 'Bank with Payment and Performance Bonds for the work, written by an insurance company authorized to do business in the State of Florida, which insurance company shall be satisfactory to Bank and its counsel. j. Borrower has deposited current funds in an interest bearing* account with Bank, of at least $3,558,000 which Borrower contribute towards the cost of construction and the interest; reserve as described herein, and satisfactory evidence to Bank%... 95- 561 .di i West Brickell Apartments, Ltd. December 15, 1994 Page Nine k 1. . 15'. 16. and its counsel that Borrower has access to funds in a sufficient amount to make the $593,000 deposit upon 50% completion and to make the principal payment reduction to Bank on conversion to the Permanent Phase, which evidence may consist of the execution of an agreement to purchase the limited partnership interest of the Borrower by a "Tax Credit Fund". Borrower shall execute and deliver a conditional assignment to Bank of the funds described in Paragraph (k) above as security for performance of the obligations of the Borrower hereunder. As a condition to close on the FHFA Loan, the State of Florida requires additional funds from the Borrower of $1,059,600.00 ("Additional Funds'). Borrower may provide .the Additional Funds, which requirement is also a condition of closing the Bank's loan under any of the three alternatives, or a combination thereof: (a) a third mortgage subordinated to Bank and FHFA Loans; (b) reduction of developer's fees; or (c) reduction of project costs, which shall substantially not, as determined by Bank in its discretion, diminish the quality and value of subject property. Hazardous Wastes:' The Borrower expressly represents to the Bank that the Property and the improvements thereon have not to the best of Borrower's knowledge, in the past been used, and are not presently being used, and will not in the future be used for the handling, storage, transportation or disposal of hazardous or toxic 'materials. The Borrower agrees to indemnify, defend and hold the Bank harmless from and against any loss, cost or expense incurred by the Bank, including without limitation attorneys fees at both trial and appellate levels,_ incurred by the Bank as a result of such past, present or future use, handling, storage, transportation or disposal of hazardous or toxic materials. The Borrower shall obtain, at the Borrower's expense, prior to the Loan Closing, a report .from a reputable environmental consultant approved by the Bank indicating that the Property has not has not been and is not presently being used for the handling, storage, transportation or disposal of hazardous or toxic materials, the Bank may require that all violations of law with respect to hazardous or ,toxic materials be corrected and/or that the Borrower obtain all necessary environmental permits before the Bank shall fund any advance under this Commitment Letter, or at its election, the Bank may terminate its obligations hereunder. Americans With Disabilities Act: Mortgagor covenants and agrees that, during the term of the loan evidenced by the 95- 561, r1M West Brickell Apartments, Ltd. December 15, 1994 Page.Ten Note, the Mortgaged Property is and will be in full compliance with the Americans With Disabilities Act ("ADA") of July 26, 1990,,42 U.S.C. Section 12191, et. seq. as amended from time to time, and the regulations promulgated pursuant thereto. Mortgagor shall be solely responsible for all ADA compliance costs, including without limitation, attorney's fees and litigation costs, -which responsibility shall survive the repayment of the loan evidenced by the Note and foreclosure of the Mortgaged Property. This commitment letter carries an expiration date of June 30, 1995, in the event this loan does not close on or before said date. Along with your acceptance of our commitment we are to be provided with a non-refundable payment in the sum of $5,000.00 towards payment of the commitment fee, which commitment fee is paid as consideration for the issuance of this commitment. The balance of the commitment fee shall be deducted from the initial disbursement made at closing. Unless you accept this commitment within 10 days from the date hereof, this offer shall automatically terminate. Borrower agrees that said commitment fee is neither interest nor payment for the use of money. Said commitment fee shall be paid - to 'Bank in consideration of Bank's promise to -hold or -reserve the ' amount of this commitment -and shall be earned upon the issuance of this commitment. If the transaction hereby contemplated is for any reason (other than Bank's default) not consummated pursuant to the terms of this commitment letter, the Bank shall have the right in its absolute discretion without the requirement of any notice to the Borrower, to retain the proceeds of the said commitment as -liquidated damages and not as a penalty. It is understood and agreed that no part of the commitment fee or cost deposit will be returned to the Borrower in any event, either by credit against ,Expenses (as herein defined) or otherwise, except in the event of the Bank's wilfull default in the performance of its obligations hereunder. However, upon closing of the loan, the commitment deposit shall be applied towards payment of the commitment fee payable to the Bank at the initial closing. Bank shall be under no obligation to close on this commitment if at the time of closing, this loan would exceed the Bank's legal lending limit to any one Borrower. Bank reserves the right to cancel this commitment and terminate its obligations hereunder at any time upon the happening of any of the following events a. Borrower's failure to comply with any of the applicable conditions of this commitment within the time specified. 4. t West Brickell Apartments, Ltd. December 15, 1994 Page Eleven b. Non-payment of any of the fees or expenses to be paid by Borrower in connectin with this commitment. C. Any infirmity in Borrower's title to the real estate. The filing by or against Borrower of any petition in•bankruptcy or insolvency or for the reorganization of Borrower or the appointment of a receiver or trustee or the making of an Assignment for the benefits of creditors. d. NAIVER OF JURY TRIAL. THE BORROWER, GUARANTOR AND L E N D E R HEREBY KNOWINGLY, VOLUNTARILY 'AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY WITH REGARD TO ANY LITIGATION BASED ON THIS COMMITMENT, OR TO ANY OBLIGATION RESULTING FROM OR RELATED TO ANY. LOAN OR GUARANTY RELATING TO THIS COMMITMENT, OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF DEALING, COURSE OF -CONDUCT, STATEMENTS (WHETHER VERBAL 'OR WRITTEN), OR ACTIONS OF BORROWER, GUARANTOR OR LENDER. THIS PROVISION IS MATERIAL INDUCEMENT FOR THE LENDER ENTERING INTO THIS COMMITMENT. Very truly yours, CITY NATI L BANF FLORIDA By: � /4 ClYarles Torres 'Senior Vice President Y •i�ti•��R;--199 WEST BRICKE PARTMENTS, LTD. A Florida ted Partnership By: 7_7 _// 95— 561 t... PREPARED FOR Richard Fosmoen Executive Director Downtown Miami Community Coalition 330 Biscayne Boulevard Miami, Florida 33131 PREPARED BY BL AZEJACIK & COMPANY 655 S.W. Miami Place Miami, Florida 33130-3008 Phone: (305) 372-0211 Fax: (305) 374-1948 95 561 BLAZEJACK&COMPANY REAL ESTATE COUNSELORS LICENSED REAL ESTATE BROKER Adp 25,1994 Pitbad Fvum= '�aative Datx�or , Downtomhmi Comwmnky,+CoaSn►= 330 mcgzc Hoaltvasd t ]� of �tcal Piopestg-I+i'o. 94U'I6' N Comer of S.W. god Av=msc & M&Sim a vacant trW of0" a= Bemna pad- Coady, Florida Deer M. Atydtr vxj=4 yw have completed a iaaitai swpc apg ziW of lire above =cfi===d real prapetp. T2m scope app ms sA states our agrn= of ft poapetty`s i�daz�t Yahu1 sub�ett tovadoasA%m=pd=andT Caaciit= set8cathucdieaa=npauyingxcpo:m thephydal kspection ana m ai sis that f D= the basis of the repad h= be= eomdudtd by the =d Our analysts hm beta pared is comPfimce weth the Un]Tclrm SM3d=& of Pc�aal Appraisal lamer (E WPAP). The aaoamYtaYma TerOft hxftdw p=ffiatat dsta.s=red in our iaves6gmdm czbffiw stud the dctazls of the processes used to arrive at our Goadt>sioa of valve. ads a result of tine t and study made, it is ors olaniou that tba N(acicee Val= of Y the tee smople zotetest is the as of Sutp A L094, as: F.iGftT HUNDM.D TWENIY4M TEIOUSdND DOU AES 655 SN1_Miaiv i i'lace- Karr* Florida 33130-3W8 -(305) 372-0211 Brovjmd 462-4t70 JUL-26-1994 10:31 305 374 294E P.02 95— 561 owe CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM 85 TO : Honorable Mayor and DATE : JUL - 5 1995 FILE Members of the City Commission suaiECT : Resolution Relating to Purchase of Land For Development of 130 Unit FROM : REFERENCES: Housing Project Cesa o City Commission Agenda City er ENCLOSURES: Item - July 13,. 1995 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution relating to the development of an one hundred thirty (130) unit affordable housing project by the Downtown Miami Community Development Coalition, a not -for -profit corporation, on the old United Way Property, located at SW 10th Street and SW 2nd Avenue, Miami, Florida. The attached resolution further authorizes the City Manager to allocate and disburse funding from the City's Home Investment Partnership Program (HOME Program) in an amount not to exceed $825,000 to defray the cost of site acquisition, which will be based on the average of two (2,) appraisals secured by the City and $25,000 for other cost associated with said acquisition, in connection with the proposed housing ,project by the Downtown Miami Community Development Coalition (Project Sponsor). Said acquisition funds to be provided to the Downtown Miami Community Development Coalition in the form of a first mortgage lien on the subject property. Subordination of said Tien shall be sub7ect to review and acceptance.by the City of any future. financing provided for the development of the proposed affordable housing project. The attached resolution establishes $412,500 or fifty (50%) percent of the City's financial assistance to the project..as the amount to be reimbursed to the City by the project sponsor, commencing when the housing project is refinanced or sold. The said amount_: to be paid to the City over a fifteen (15) year period.at a rate of three (3%) percent. BACKGROUND: The Department of NET recommends that the City -Commission adopt the attached resolution, authorizing the City Manager to allocate and disburse funding from the City's Home Investment Partnership Program (HOME Program), in an amount not to exceed $850,000, in .:connection with the acquisition of an one (1) acre parcel located at SW loth Street and SW 2nd Avenue, Miami, Florida. 9r- �.;. In July of 1994, through Resolution No. 94-509, the City Commission, designated in principle, the Downtown Miami Community Development Coalition, as sponsor to undertake the development of a proposed 130 unit rental housing project on the Old United Way Property located at SW loth Street and SW 2nd Avenue, Miami, Florida. This conditional award was conditioned upon the Downtown Miami Community Development Coalition submitting the following documentation for City Administration verification and City Commission review and approval within twelve (12) months from the date of City Commission approval: 1) Final project site plan, unit plans and specifications.- 2) Verifiable evidence of firm commitments for construction_ and permanent financing in accordance with the Project Sponsor's proposal to develop the property. To date, the Downtown Miami Community Development Coalition has secured an allocation of Low -Income Housing Tax Credits from the State of Florida in the amount of $6,000,000, in addition to $201,000 through the State Apartment Incentive Loan Program. Approximately $1,850,000 in project financing has been also received from Metropolitan -Dade County. Moreover, the Downtown Miami Community Development Coalition -has also received a preliminary commitment from City National Bank for construction financing in the amount of $2,312,400 and permanent financing in the amount of $1,245`,000 for the project. In order to move forward with the development of the proposed 130 unit affordable housing project, it is necessary that the City proceed with the acquisition of the one (1) acre parcel of land known as the Old United Way Property, located at SW loth Street and SW 2nd-Avenue.. In July of 1994, an appraisal of the subject parcel was secured by the Downtown Miami Community Coalition which established the market value at $825,000. The attached resolution authorizes the City Manager to secure two (2) appraisals to establish the fair market value of the subject parcelfor the purpose of providing city financial assistance to the Downtown -Miami Community Development Coalition for the acquisition of said parcel. The level of City assistance to the Downtown Miami Community Development Coalition for the. acquisition of the subject parcel will be based on the average of - two (2) appraisal reports to be secured by the City and will not exceed the $825,000"which is being allocated for this purpose. 95- 561 Honorable Mayor and Membersof the City Commission Page 3 Said acquisition funds to be provided to the Downtown Miami Community Development Coalition in the form of a first mortgage lien on the subject property. Subordination of said lien shall be subject to review and acceptance by the City of any future financing provided for development of the proposed affordable housing project. The attached resolution establishes $412,500 or fifty (50%) percent of the actual amount of financial assistance provided to the project sponsor as the amount to be reimbursed to the City for site acquisition, commencing when the housing project is refinanced or sold. The said amount to be paid to the City over.a fifteen (15) year period at a rate of three (3%) percent. Funding in the amount of $825,000 is available from the City"s Home Investment Partnership Program (HOME Program) to defray the cost of site acquisition in connection with the proposed - affordable housing project. In an effort to further promote the development of new affordable -housing units in the City, City Commission ratification of the attached resolution is recommended. 'Twift The New World Center Foundation, Inc. d.b.a. owntown Hit m1 Com�nu�nieyelog�ment oaition- A not -for -profit housing and economic development organization piredm Me& GoM ChairpeMn Marwin Cassel Lynn R. Lewis, Vice Chairperson Robert Sechm 1 Heroow Richard Kuper RECEPRED Joe Finoy, Treasurer J U N lti 1995 1A Landis Patti Allen Peter Andolina COMMUNITY June 16,1995 DEVELONUTIEN Frank Castaneda, Director Mami Community Development Department 300 Biscayne Blvd. Way 4th Floor Miami, FL 33131 Dear Frank: In July 1994, City Commission adopted the attached Resolution (Exhibit 1). I am pleased to inform you that the Downtown hfiiami Community Development Coalition (the "CDC") has been allocated Low Income Housing Tax Credits by the State of Florida that will provide for $6,000,000 in equity and $201,000 from *the State Apartment Incentive Loan program. The CDC is now prepared to proceed with the purchase of the old United Way parcel located at SW 10th Street and 2nd Avenue. The acquisition of this property will allow the CDC to proceed with the construction of 130 units of affordable housing. Also attached are the following exhibits as required by the above Resolution. - Specification, Site Plan and Unit Plans for the 130 unit affordable housing development (Exhibit 2) , Demonstration of construction and permanent financing as provided by City National Bank (Exhibit 3) In addition, I am providing you with a copy of the contract of Purchase and Sale with the United Way (Exhibit 4), together with the assignment of the purchaser's rights to the CDC. Further, I have included an Income and Expense proforma for the project and Sources and Uses of Funds statement (Exhibit 5), so you can see the various of funding sources that are being used to accomplish this project. 25 SE 2nd Ave., Suite 828 Telephone 305-371-9116 Miami, FL 33131 Faiphone 305-371-3966 95- 561 The most expeditious way to accomplish the acquisition of the property would be for the City to allow the CDC directly to purchase the property in accordance with our current contract of Purchase and Sale. We do have a letter appraisal (Exhibit 6) demonstrating that the property value is not less than that which we are currently offering. We will obtain two additional appraisals on the property verifying the fact that the property is worth at least $825,000. The copies of theseappraisals will be provided to the City for your files. We would not proceed to closing unless these additional two appraisals have demonstrated that the property has a market value of at least $25,000. Further I would suggest that you incorporate the following two conditions within the Resolution allowing the CDC to purchase the property. 1. Should active construction not commence on the site within two years from the date of the forthcoming July 13, 1995 Resolution, the property would revert to the City of NiamL 2. That the properly be restricted for use as affordable housing, again with a reverter for breach. I would be prepared to recommend to the CDC Board that it contractually commits (perhaps as a junior mortgage in favor of the City) to utilize the CDC s net cash flow after any refinancing of the project at the end of the initial tax credit term CLe. 15 years) to repay what would be cast as a City $412,500 loan to the CDC and that actually "converts" the $825,000 grant you committed in Resolution No.94-509 into a fiscal return to the City. Such money is of course in addition to the benefit of having 130 units of affordable housing, plus the tax revenue therefrom . These elements will assure the City that construction does proceed on time and the City will receive repayment of the money that it has provided the CDC for purchase the property. Should you need any additional information, please do not hesitate to contact me. Sincerely, Richard L. Fosmoen Encls. RLF/dk cdc\wb\f w&sam 95— 561 akVIPv Im June 10, 1995 130 units WEST BRICKELL AFFORDABLE APARTMENTS DEVELOPMENT COST PROFORMA TOTAL SrQm Land $825,000 Land Extension Fees $15,000 Architect . $150,000 Engineer $50,000 Survey $4,000 Envlronmental/Soils $8,000 Water &Sewer Connection Fees $170,060 Legal $100,000 Insurance $42,000 Taxes $15,000 Title.& Recording $65,000 Finance Fees $64,000 Inspection $10,000 Appraisal $10,000 Accounting $33,000 Tax Credit Fees $70,000 Construction Interest $310,000 Marketing $50,000 Miscellaneous _ $50,000 _ Construction Costs $7,400,000 Developer's Overhead $300,000 Developer's Fee $380,000 Total Uses $110,121,000 ,9QUHCE;a Tax Credit Equity $6,000,000 Dade County Mortgage $850,000 ist Mortgage - $1,245,000 Dade County Surtax Funding $1,000,000 2nd Mortgage SAIL $201,000 City of Miami Mortgage $825,000 Total, Sources $10,121,000 95— 561 June 10,1996 130 Units WEST BRICKELL AFFORDABLE APARTMENTS OPERATING PROFORMA 1995 Less:1994 1995 Max. 1995 Proforma Annual (A) Bize. No, Units Gross Util. AIIQW Not Rent Not Rent Income Efficiency 20 $312 ($54) $268 $195 $46,800 (0 40% OF MEDIAN) 1 br11 ba 6 $W6 ($58) $277 $277 $19,944 (® 40% OF MEDIAN) .1 br/ 1 ba 91 $602 ($68) $444 $444 $484,848 (® 60% OF MEDIAN) 3 br/ 2 ba $696 ($76) $621 $616 $96,940 (® 60% OF MEDIAN) 130 $647,632 Less: Vacancy 6%' . ($33,313) Plus: Other Income ($12 per unit/mo) if] 8,720 Effective Gross Income $632,939 Less: Operating Expenses $3,000 per unit ($390,000) Less: Replacement Reserve $200 per unit Net Operating Income $216,939 Debt Service -1 st Mortgage $1.245,000 ® 10.6% K ($130,725) -2nd Mtg SAIL $201,000 A 3.25%, ($6,633) -2nd Mtg Surtax; $1,000,r100 o• F.o6q% . Remaining Cash Flow =9= Debt Service Coverage 1.165 x (A) Based on 1996 Median Incomes for Dade County, and 411/94 utility allow�s. 95- 561 0.,1N 4.1. IN..1 ./,IN M. .1..m .N w��ru ''I .NN i1M �YM .J.. 6.0, 1 11..N..1• wwNlw N.NI .1.•N I I.W ..I• INWNI •Nw .. .,N NNII N N: I N N. N w. N A. 111..N. NI A. 111 N. 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A- e� t �u • d Cornet brac{stg. aulfding papa or tdl • shae _ . yf :width_.....__; solid; Oepaaed,,,_e ; o.e.; O diagonak c. du r dy a t�ataatnt� �, $Mtxa-•-----�--_3 !R t_.. twek:+e:i 'S Lath IdAft ry a taw • fiat ' . sllla ` _ �----- l�t° el Gass Otflttrtg r Pr4bott�:13 lolid f7A ticod tt�teoaod: lotDl tA�ill lltldtnett t •� (icing thlclareat 1 r h Acing trutaial uACkVp taelafial bonding N-A, FHA Fmm 2WS E•1 VA roan , is-tts2 DESCKDMON,QF MATERIAL 95- 561 { btsci vok or hUtlti -uL cokit Door sllb ', InfWWI. ' WI.'dimpptodfin AitdiilaivsJ Womulloa , l?V-iN �se+iet.ptintlnt: 'trtst�ri�l __�b�: QIblo;l tl coasonrcttata:i sane A! MAA • a:lt'tvok t�trttd: MV* t 0&4 And Sp6deer r, ; tds�laeie� x #4 I " tlticAatei Window sills NIAlzt i Lintels ;&' ' . BT gashing 6,AL_y verse_ �(g,,;, eats of • heating _I - x Z" P. � _ fxj A094i ��. _ I °3 Ngft , d tenGM " a,. fK — - other tortstr U(Ion — ntun6 w a(wAtt ] d mported, l3 ssd! sapparft tlx bga,,2 ioff f ._1 hc6m Aduoriotb tsdar . tu Os . o 7. SlJ' FLOOMQ: j7as0N& veldt►�Iloseas:for,peae(flao+=an�erEtaa�l.j lJ..s1. lr906siA Vide And OpMU Ike - _ : two 1A ! 13 tin! dloaq EJ bwowd;;4-d arse sa. A.t O disgotil: 3 right mglcs• Additional W done:- •1 l E R MA70 ENt7:. IN'iod ertht ��lJcNbt otltisrllnEtb Ao�orias' sasdtt Efmr 71.1 — •!• PARMOR MUM:Wki _ d+pBeiY • i� • �'° • � else And tpecb,` Other AddldeiAl tnftxatAile U- 25• NON. —"AO —erAJVA4 4AL•,-• it Ct=d n1Ald d:Jew_ Add! 1a U6w bilho Am I*"RAEUV• I� o iasd 11. itooO MMMdt itdertgntod, t tad ipwa -• +►`E.g °` • Amfb sus (see detaft psde tee,! 1pedu , Ind. A • Add}lkml 6Avi t U6&-• Te 'iLfl, :-__,t%E.�asct` s "belts. wood. grids, am JpWR ._:a W � ' t ® toUd; ® Qpwul ea ° ce. MAW* ; weight or thiaknet! else • d3� t,00flfrt .. � �k+. I aurnbet sf plies metaisl � � saittr;d t lags •r dghl i to pewl stag eao* guards AdditlocdllnM,tulloa: .,_._, �guf.�onab �aaG. Qom. saUr_gfZ r"&fV-1J-'GUTUNSA"b0WMXP0Vn: N.A.. saseialW ,: 1 gAg� or we1s�,1 ; 9iae — I ;shops srssts:ial .., : ..' t tjs�®w vet{ght�, j sLee��: spy , : nurabei , dJdwrts wdu eeswbnted tai dtlorsrt te4Mer. C! sanitAq tower. O dry-vr lt. C] Sp{ash blmkt; notarial ar+d s{sa ' Addidlaa� lalbtntt+tlosl: 11.1�.A3 MD FU$ R . . �tlt (3' *iwjt el0d` : t1yll kF : �T.� i mi jht of mks st �( ; plutm tostl,___w j thdth Eo ly p Ci wtilt, t� wlltd�: l�Ittiel : thickness �? ilaish fviel trtloinoat . _ Miw Tm; ffalnf. shell Ne.) ., , M. 69 MOM o,J. . Rootat Will Flnith MANdsl and Application Ceiling Finish Material =W Application Klttbea pu~ a qf, 00, Z cr$. - Qe rra• 8slit PN►;rsMD 6+sP tka - urs. �-' o r " p rl-ra Other P�tN� G�+P• r3p. nOrietr►!,?S :f�fs� NON "PW avrzv" v t IA Pam 2005 DESCRWnON Or MATMAL Cyr•' 95- 561 lVAN 0. WnRlog btytias ANb w l Dolt; IM r-W6H rw,4,0 lop cRgg.; "wean w0 Doo► him, h* ,.m/+tttel. N• �► • Btu: n�►l�ct-p�et+•ter;.t 1hr1i1� � sW " tbdtht dooN pAwr- .. ,-OAre2 ; trim O!!t!t trim (lire+, op# diMd Ima m) W • 4, 6iddildotLlltniormAticti �RC,•.k1/N� _ tyaoD___4�iz�r� g► x 1lriddow h'Pe Sl.co s tt�ll:e +b S _i esetariel _..; rah Wcknw .S, Ore i+ ;t1lrutra rJ „" •,:,1 C1 tAah Wtilhtt; IZ b"oes, bdtd �a�' ate:. • ..;..� ! tNilvitl hi. Il , !tl}a! /�. l s�a�b�trwlmysBA' r w..w+r.�•++r itrt rtrY r , � -0 �+• ambar „du". i'�a :�anN�ris! w St N. A ° (� ra ta�ai alotk a�otstin!L� ».. !tad t whtdd*t !m/ j� A _uteri!! _ O�•A . _ i , Humber slam tad, oadbet •A(14 ° AMWomaWft,---i..... nrd� �R.'��ii.ri-e..r�.'di�...'�rr•..r�■ , ■ten..-�....r �,mie+.���� 4�d�ta�AliCE� A� l�xt�tl�Ioit �1L�� � w�•• M Wn►aai ddor; #jsWit1 4obt i �; 'kith 's1 o� ttti dmat 1.3A •. �teme: wary al + tbkkw! I$A4, �k0ut�l��m dodlt: h�dli�d widt`lsy��.d ' ' EPalcA�sst .I • �Y wbi . Ftaa�c nrutl�c�iet tom; tbisb�uf •o " •MiM °IeNW.� • A 6 •. r M:.im �••.•V�rr t MW°� dam (wcj ituMW screw !lath trines_ Sim = doom- dddwAa , ; number C'deubbsedw Mond W kt+l�lt &oW tl:lsbt� ttanatba.,_;; saa�s+a elolh trotaitd gt1 9a&&4d &trd, it�Wt`le.,:�Q• �lette toast bddidor ddllftda pi►dt.et}�d VOW 'APtdtt! .! � tttttab� w►t!'..r. +�lrrlj�Otrs`d! bArhW6a: . 4.R • Lo dd� —.rr&w gpr CoN e, t� �+�'�� •tl Mr �-• � IfM t abbe *W tWtt: tr><tttiel . to �a LI . covfp vA,w•i� 0 •; ltnaa! tcet of cdielvet lA : skuwi i M Meal IAWW tale W . l .r._ �p Areal lady �5J{�1iJ M"Nore*blatsl. ►asm.r m auttilaootlf A. �►la d�Abb ��/ 14USC! 1, �_irY ` • t ..NLOL • A.O All A todRMId edlidw • �Yui� � v _ ♦ .t �rYi. �.�eii`Rvei...r�l/ .. . ' . } Pried! � . ; Sd�t Hatedrdt 13elirtSske • �t •`. dr9i err Tltlebtesr :Mttuial Sipe RMte a I lim Mtterw S flet��. c oqe, .. N A!, A. f'IP�q• , d"a '�!"�� tea! risrodBl !!Itlbbt# ... •.q w E•3 _ 10t4 C71" o" DEscRrTk7N OF MATERIAL 95 561 ap� MCtit1! TRW Otk MaMI t:dW t _ . • ;: 11oit !!ti!!, Coldt, $older, 3ttti, t71`!. Ele.. �l/l U Mfltttitl M1!!lIAI 1Z, ,c Ile, +' gllb '/, ,G. T . • VI NyG •- Z''� t�,�',c/�' >ew, a... ' i od ...._i... %d/tltiel� t,►tl1t1l� �e1t t, C", Sao, atta Btt. t�feikht HN�� N Pid (Anw1Jae7 "fug ON 'AW N. A. on • n, »AnimapitMIN�tcarr� m nrs_e.v.go.Pa� ti Rob: icLtf�l�V ..AL Color M M ms Fib! Idestl(woon He. Bud my AA GV plop �ftlM t at+eli 0 , t; '. • f•A Z t 7-'Z . 4-�$ �b�it�ttMb J � .J. u�.'tTLtA�� K t 363,v9` -- carzvma W1 :t N A.. .. ' tttidtlr 0ii :! A WSW 1 .}A mmb Mtm&swdty gjUnt (pclreta) "em • t shoo *W dtkHA1 hid- mimt 4410M M ItdHt� 11 doidit tot jt�a w �l�t, e»Japee(JdeaKa►, gecavdtna fe otJihr����' NawY tlrtdA �I tk tSNN frillf� � � Oloase soartr loetsidt% E3 csA bvm O tuii; Wall010 tQ: 0 011l+►m1w 1 VOvbbjt outer " Sill �eodv1,'a+artbdr b&wilo law cMke t+ad tnedel y;,NvnK tn'- ® 5m, WOO apieily i 41i1.: A Wdr thAteriel 'S .. h► .......'` e'er ; !1!•rl ty i�•N�.�ot t. � ether �aPIPOa�t:Q +� NAr !•ootlnt drtlbal.beettt�elA� i� 416t�1 tk+M�4t'1 d JWun ie*tr• ® dry %9*11. Be" t 0W. make er+d model ,. — .1 d lY - • dlu1w`e! Into* , ot'> iC• em Cl Two jApe sMhq. !$• ij � got tNEet. d atdltd. � 11l1►ot. ij oft -Pipe �9 D kl 416". ti. t�mv d ljjmbwd N1.R dtidon. dt sm Model -Minl h tj ftwi. O tvAlf 1.•6tit i. fine! talk materiel ti Cla walut, b Iti0ttri filth. M�k! Afid Mn l 'oPt1ty •beller. hAf gad utnlr. ncl tettna AddllidoAe lntot�tt/ll8tt -� WaHA etr. 1j CltIlly. 0 r6taa lype of 1ptlt+d mc Wwadon ,c, %kkntss MUM fir kntakt . :bwd mslfildt supply �j�6�.1 tetara� jl' ttUllct AM ttWdti —' (nplat tacnh.. oudel ;J`ddldoNJ flow- urtfi htrUtt. inputBOA.. on,pat , Dh&; w mbet oniU � _..-.► d $plot► hwatar. L1 loot fi,tt+eeb iiA t:e ft130G! E-t DESCRIPttON Of MA ER1kl- ��> o'& 9 5— 561 414V USCR"OH OF CON'T "MAC, MOM, AddlUarul 4JocuwUaa• doalaolx m►ke ind types AMUoW lnrbnatici: F��ujje�t�'d dola�,,,l';�L7r�m��l��h��,��A Sit 0 Ifq. ptt fit O kladrlc', Clotlur 1 �Ito�p�� Opeci7 AmuiW tfafmut"- • . f �ttl 8�tti�►t,ata! lu�pltt�batsd�tcpwlily. CI aju burner, eoa►enlo q type. O stoker: boppct rod O; bin recd O pll + aaaadc! . + et isb+�, d wt�L+s Wko tub Caatrol haunt "4 ' zp� oeapat htE<. �aUot�i'lafb�ssdoe� �1�llCtl.�� / IA' tsWla kn1 �d and bsodelCc A Ulu C 0 %Ud& t�d p0uii: ABM bok it 4=i!•boAtr te�k1 ltt,r,_�- ���;►� ��ht�lfj Cto1� tle able; 01mab ad tuber, a ... „ ... .. . JI" ewlal� �� b Addy C1 +mow, i ilor� -two su m ot'tUctar�8. r R TOW Alldubea for lutvcL comma iOf llWYli►liiJ(7I -loll' i.�ii►tht �b�uj ofedst,t a•i M®ibod'• 4atiNt • 'V 'r i r f o /taw .ow JWjjj0MjWAnIL �+1 - . ��'�� . j�t�t9Qq 1'��i�a1 IN+! pt�� Aro�fd � t4rtp�agmt• ea+de�la ank► I pa�reRu -• .. • N �hrd1 elitr .. to I. ' , r ;. ... � •• .. .. .. .'. ...• ... •.•... A off: �NcH f illy Mr3<6A Ill�+rj InQlirtatt. t�e+r/mi,i j, or fonseri drt Irt trot t PMt 8 srt, or• qtt rp �' R owl tgfbtttldbodt 4iiW Q !felt¢ d (n,drsaat. ,lIWA rorW# 0►y IttM erWUr fA FMISPond ao 1 = Mad of AIjArmj _.. . ,. . __' LLB _. �• ... . + MA �o�r tool �•s t)gsOR. voH OF WTFF14 VA l.. . 95- 561 `3-3 • itSCl'TION 0 h1.lTL'Rlit.5 CON'T 1'0 fC S: Tu CIS: .t a CAM 95: - WALXV RIY>l WA VS: va Ut•rrce u , dnb bdim . *ldth l,.� 1 U" wtAul t."40SWW► r, : thicknus 40' r: swtrmitaul s;t" ihic6tsb �� r Ftvrtt' width ID' r MJ►udd . .J u,teMau _ �•'•. �aAce w.ti *iat6�,; m.cttdtt t thlcizteu.2'� SI trod! OAt- rbw •. Cbak w+rlltr _N a��t��rsrr>i aar�nwla�t�rs; (stFe(y �ji lliiitPldl• e�rllt larp►sot+erMMet dol dertria�d ebr+•Arr,r. JAt►wd/n� fren� lYck ae wi W,�O jrarila` deoha je BhMsNrrtp. hlobttn� tlpi!!, fi�t�, toNlr jl. as>.: aeceuory an.iorwsr.J - `ir1llD$4�. D'$Ct g CI, lydli9ii GiIAAiNG: T"il LI9 kW �r:ml 1ffllde Yrdr, ricer YWA to 1,�. •k0be" ttulr: building. L Wd (too ad ik CA kool yUd:000!k2 a U side yudl'xo2 :RY rest ysudi`llatiI: n 1C bd etl drlwinir, Xo mlowe: 364 Ire" dbcl"ttd :� t Q r CAiPO .,S..,STafros trfts. , Lb to ;15 ! 11Ae. Lew tlowa '0 WOO deeldmt , I.Q * 'to - i �; i Vr� neat thtubv, ! Io � !, BAB. wgb•p�IMA$ tbruble d6eidtsoWa ,;.yesr . _ owns Mt�dltet�•�tvwittI thtltbI dalduoua'�'ta � •� 1�hims dbt�dubd ' ° M1 JIFFICATICON: ThU fthl ll "I bd ldfnUfle d by the rip Arure of the builder, or apo-rf'&nd/vrtho PfQ pow oitortoele it the NNW U s=*Al the Una bPDowntown Miami Community Dev. Coal i ti _ — • rd Fosmoen, Ex cutive Director �ipun:re Sigtutwe '" Fortune Constructio? Company 6; e. t �f i "fA Po" 2003 E-6 pEScp1r 10N OF MATERIAL VA Form-16-I152 ay 95- 561 25 West Flagler Street. Mi:wti Fiomla 3.')1:10 Tetephaae (3051 577.7333,`_"� P.O. Box 025620, Miamt f xi It12 5fi?0 Telex `519215' CITNABANK MIA Int'I Telex '153168' CNBM UT EXHIBIT 3 Cit National Bank �)Y December 15, 1994 West Brickell Apartments, Ltd. c/o Downtown Miami Community Development Coalition 25 S:E. 2nd Avenue Miami, Florida 33131 Re: First Construction Loan Mortgage in the sum of $2,312,400 and Permanent Mortgage in the sum of $1,245,000 for Construction of Apartment Complex containing 130 units at'N.E. corner of S.w. loth Street and 2nd Avenue, Miami, Florida and legally described on Exhibit A. Gentlemen: This letter will serve as._ our commitment, subject. to compliance- - • • ••with ' legal•• -lending 'limit 'regtulatiibltis;' to '•g"rant to""Oest Brickell Apartments, Ltd., a Florida limited partnership ("Borrower"), a. Construction and.Permanent loan to be secured by a first mortgage on the above referenced property. We shall be referred to as "Bank" or "Lender" throughout this commitment. This loan will have the following terms: 1. Amount: $2,312,400 Construction loan to be converted, pursuant to the terms of this commitment letter, to a Permanent loan in the sum of. $1,245,000.' 2. .`Term: Construction shall have been completed in compliance with'all applicable ordinances, laws and regulations, and the approved plans and 'specifications', within seventeen months from the date of closing and shall mature on the eighteenth month from the date of closing ("Construction Phase"). Provided construction is completed, within said period and all other terms of this commitment and the loan documents are satisfied, the Note, upon conversion to the "Permanent Phase" shall mature. fifteen (15) years thereafter. 3. Interest Rate: A. Construction Phase: The rate of interest during the, Construction Phase shall be One (1%) percentage point 1` -N Weal BYicxeil Apartmantn, Ltd. pgeaenbetr 1�5, 1 �'46 rr►' pal$ Two ever the Done hats of City National Sank of Florida ("Note Rate1e) The Bass Alto is Wined as the interest rate as iron tito to time announ%;W by City Naticnal bank, at the discretion of City National Bank. 'Ph* Haase Rates is neither tied to any external rate of interest or index nor does it necessarily reflect the lowest raga of interest actually charged by City National Bank to any particular class or category of its customers. antareat shall be oalooleat+ad an the basis of a 360-day year, but - interest shall aocretA and be payable for the actual number of days in each mantis. That rate of interest shall be adjusted daily so that when such Base Rate shall change, then Note Rat* to be paid by burrower shall change eaffeeectivep no of the day of tho chango in sueh !lase Rate. x. R mane*nt.._Phasa: The rate of interest and method of repayment during the Permanent Phase and the amortization shall be aeterminead, at bank°s option as fallownt a) A fixed rate of interest of 9.965% per annurm with equal monthly payments of principal and interest based upon a thirty-year amortizationt or, b) A fixed rates of interest at 10.50% per annum with monthly payments of interest only until maturity. Under bath of the foregoing options interest shall bw calculated on Lite basis of ea 365-day year. Bank shall make this determination by notifying the Borrower in writing, no later than 10 days prior to conversion to the Permanent Phage. If Bank tails to notify the Borrower of its determination then monthly payments of interest only shall lea dua and payable during that Permanent Phase at the rate of .10.5i per annua. 4. Payments of eoastruction draws: Funds for construction of the improvements are to be d1sburned on a pro -rates basis, bet -wean Barak, Metropolitan Dad* Cautnty. He not! es3s Grant and the Florido, ►messing Finance ho ncy ("F1iFA") calculated as follows': bad* County Homeless Trust Grant 868,000 or 18.19% 400 iM1►A Prlrec;i.�1 $ 400,000 or 81664, Bank's Conset tion Loan $ 2,312,400 or 50.03� and mortgages aubordinot.ea Financing 11059,600 or 22.03 0 �rrl�l lii LLt�UvVa►i�u n.�a►.. Jlu.,. i ., u.. ♦.. ._ �... .. ..... wtbst hrickell Aportments, Ltd. oecomber 15, 1994 Page Three As: *aeh draw request is r+acuived by Bank property certified by Satrrawart arahitcaet and the inspecting angineer, the Florida Mousing Finance Aejency and MetropOitan Dads County Mal ? each immediately deposit its pro -rats► portinn of t:h• drew request with Bank, so that the entire draw request can be funded by bank, Aarrower shall, at closing on the construction Phase,,fund as an equity contribution the sum of $3,658,000.,'of which the sum at $1.60,000 shall be deposited in an 'interest bearing account with Depk, its all intereat reserve (as describad in Paraegriiph 7 hereof) . In ' addition, the Bnrrnwar ahA1 1 contribute the additional scam oi' $593,000 upon completion of 50$ of the improvements, which funds shall be used towards payment of constructlatn costs. At maturity of the construction phase Borrower 'shall make a principal payment an amount which &hall reduce the outatanding principal balance to $1,245,0oo. 5. RepaymoutI During the construction Phase, payments of interest only, monthly, aoamencinq one month from the date of closin. During the �ormanent Phase repayment shall be doftaralnod in the manner not Earth in paragraph 3 (b) of this +..+ Constituent letter. e. Fri -payment Peaaltya There shall be no pre -payment penalty during the Construction 1Phasso Durliq 41a Parmanasul. V111Iars there shall be yore -payment penalty, the amount of which is to be agreed upon at closing on the Construction Phase. 7. Interest Reserves Borrower shall, at cloning, deposit ttie sum of 0160,000 with bunk in an iabtaraot bearing account, for time purpose of establishing a reserve interest reserve") for the payment of interest during the Construction Phase. Bank shall bs antitled to withdraw the monthly interest payments from the interest reserve on the date interest payments are due, rot• lye eyrnvt�stit 4oP iut Great. borrower shall exeaute such authorisatLans as Blank may require in order to "Low the Bank to make said dtracyt payments from the interest reserve. At such time as all funds in the interest reserve have beer used, Borrower shall maxe the sonthly payments rrom its separate �°lilid fs . s. .'_ Coxxitasxt pees We are to receive a commitment fee in the sum of $23,124 for the Construction Phase and a commitment fee n the *us of $37,3S0 gar the Permanent Phase. The fee for a Construction Phase shall be payable at alosing at t Construction loan. In addition Borrower, at closing on t Construction Phase, shall pay the sum of $6, zss towards th 95— 561 ©� ,tkvitfivA West Brickell Apartments; Ltd. December 15, 1994 Page Four commitment fee for the Permanent Phase with the balance being paid simultaneously upon conversion to the Permanent Phase and as a condition to. conversion to the permanent Phase. This payment shall be deemed earned upon receipt and shall not be refundable even if Borrower does not, for any reason, other than Lender's default, convert the loan to the Permanent Phase. 9. Borrower: West Brickell Apartments, Ltd., a Florida limited partnership. 10. Conditions Precedent to Conversion tc-Permanent Phase: A. The Bank shall have no obligation to convert* this Loan from the Construction Phase into the Permanent Phase unless Borrower shall have tendered to the Bank in current funds, a principal payment in an amount which will make the Permanent Phase $1,245,000. B. The Bank shall have no obligation to convert this Loan from the Construction Phase into the Permanent Phase unless the Loan at the time of conversion is in good standing and. ,free- of, a� 1, de�4.ylts.. •••• C. The Bank shall have no obligation to convert this Loan from the Construction Phase into the Permanent Phase unless all of the proposed improvements, contemplated by this commitment, shall have been completed in their entirety and the Bank shall be furnished with Certificate(s) of Occupancy and such other evidence as it may require to establish that the 'improvements and their intended use comply with all applicable zoning and -,-,other requirements of governmental agencies having jurisdiction thereof. In addition Borrower shall furnish Bank, with the Contractor's final affidavit showing that the ,goods, labor and materials furnished to the job have been paid for in full. D.• The Sarrower may elect not to accept the permanent funding as set forth herein by notifying Lender, in writing, " no daterthan ninety (90) days prior to the expiration of the Construction Loan Term. E. The Bank 'shall have no obligation to convert this oan from the Construction Phase into the Permanent P se unless all improvements have been completed accordin West Brickell Apart..,ents,.Ltd. December 15, 1994 Page Five the Plans and specifications approved by Bank and have been certified free of structural deficiency. F. The Bank shall have no obligation to convert this Loan from the Construction Phase into the Permanent Phase unless Borrower is current and in good standing under the 1' FHFA Loan". G. The'.Bank shall,have no obligation to convert this Loan from the Construction Phase into the Permanent Phase unless Borrower has paid the balance of the Permanent Commitment Fee in the sum of $31,125. 11. Collateral: A first mortgage lien -on the real property described on Exhibits A together with all improvements to be constructed on the property, a security interest in all personal property situated on the property and owned by the Borrower and a collateral assignment of all rents and leases and profits derived from operations of the improvements. 12. Purpose: To construct improvements containing 130 residential units according to the plans submitted to Bank. Recreational amenities shall include a recreation/community. room and r laundry. '• room, The • •pr'ope•rty 'will:`b6 designated 'for "'low' ­ income" families according to the HUD guidelines. 13. Expenses: Whether or not the transaction contemplated hereby closes, the Borrower agrees to pay all of the normal disbursements, costs, and fees of the Bank and the Borrower involved in this transaction including but not necessarily limited to, title expenses (.including search and reinsurance charges), mortgagee title insurance premiums,- surveys, recording costs, documentary stamps, intangible taxes, charges for, plan and construction cost analysis and verification, inspection- and disbursement fees (if applicable), appraisal fees, certification of improvements, and any and, all other additional expenses or additional requirements• reasonably imposed by; the Bank, the Bank's counsel or the Title Company (as hereinafter defined) collectively, the ("Expenses"). The Expenses sha"rr be paid at the Loan Closing, if the transaction contemplated hereby. closes, or within 10 days after request for the payment thereof by the Bank, whichever is earlie -j. except for those Expenses which are not ascertained as of e Closing, which will be paid within 10 days after request r the payment. thereof by the Bank. In addition, the Borro 9�- 561 -w dgjv West Brickell Apari.inents, . Ltd. December 15, 1994 Page six agrees to pay to the Lender's counsel, as part of the expenses, a fee in the sum of EIGHT THOUSAND FIVE HUNDRED AND 00,/100 DOLLARS ($8,500.00) for its services in connection with the preparation of this commitment letter, (ii) the preparation of the Loan Documents, and (iii) the closing of the Loan (the 1'Lender Counsel Fees") plus related disbursements ("Related Disbursements") customarily charged by the Lender's counsel (including without limitation, charges for courier or other express deliveries, photocopies, and long distance telephone calls). In the event the Borrower accepts this. Commitment Letter, but the loan is not closed- or disbursed due to title problems or for any other reason other than the willfault default by the Bank hereunder) the Borrower's obligation for the Expenses shall survive the termination of *this Commiment Letter and all expenses incurred by the Bank, including, but not limited to, the expense of recording documents and the Bank's counsel fees plus 'related disbursements, shall be reimbursed to the Bank by the Borrower within ten days after request therefor by the Bank. 14. Loan Allocation: Attached hereto as Exhibit B is an estimated allocation of the permitted application of the loan proceeds. _ The final allocation -of- the loan proceeds _wilt be in the:.form 'of a'revised"construction budget approved by the Bank or its designated inspecting agent. 15: Standard Conditions: Attached hereto as an Exhibit are standard conditions, which are considered as a part of this commitment letter as if fully set forth herein. The mortgage is to contain, in addition to the provisions required by the Bank, that the Bank shall be furnished annual financial statements on Borrower within ninety (90) days of Borrower's fiscal year end and shall further have a provision that upon a sale of the property the Note and Mortgage, at the option of Bank, shall become due and payable. Among other, conditions, we will require the following prior to closing --.the ,Construction Phase a Proper evidence of zoning that the property is zoned for its intended uses., b.: Prior to closing, Lender must receive a satisfactory curre appraisal of the Mortgaged Premises expressing an opinion Market Value acceptable to Lender based upon completion of t improvements and a stabilized net operating income. The��,'� 30 95 West'Brickell Apartments -,.Ltd. December 15, 1994 Page Seven Lender must arrange for the appraisal and engage the appraiser. The appraisal must be ordered directly -by the .­,Lenderandmust conform to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989,(FIRREA) and the related rules and regulations of the Office of the Comptroller of the Currency, (the OCC),:12 CFT Part 34, effective August 24, 1990, as amended. The appraisal, including without limitation, the appraisal.methodology and the conclusion(s)'of Market Value, shall be subject to Lender's review and approval All appraisal costs and fees shall be paid by Borrower, and Borrower hereby agrees to immediately pay or prepay such appraisal costs or fees upon the request of Lender— C. Borrower shall provide Bank with a title insurance policy with a liability limit of not less than the principal amount of the loan insuring the Mortgage to Bank as a first lien on the good and marketable fee simple title to the Mortgaged Property and issued by a title insurance company.(with co-insurance or re- insurance with direct access agreements as Bank may require) in such forms, amounts and by such title insurance companies as shall be satisfactory to Bank. The title insurance policy shall be subject only -to such exceptions as shall be approved _ by, and shall contain such endorsements. as, may .be .required -by �• Bank''s'coun el•,''subjeci' to Borrower's right to transfer a lien to security in accordance with Florida Statutes 713.24 so as not to affect. Bank's first lien on the good and marketable fee .simple title•to the mortgaged property. d. Borrower shall provide Bank with a •title survey of the Premises by a licensed or registered land surveyor who shall be. accepted by Bank at the time of execution of the Commitment Letter, certified to Bank and the title insurance. company, which shall show a state of facts in form, scope and substance acceptable to Bank, including but not limited to, an adequate and accurate legal description, interior lot lines, if any, the location of. all adjoining streets, gores and overlaps with adjacent properties, the location of all improvements on the Mortgaged Property, location of utilities, elevations, high water mark,,_ easements and rights -of -way, whether of record or apparent, ingress and egress to and from the Mortgaged Property and natural and constructed objects affecting the Premises and showing any encroachments and/or discrepancies with any recorded instruments or existing boundary markets and shall contain a calculation of the amount of land included in the survey. e. Borrower shall provide Lender an original, paid -up fire an extended coverage Hazard Insurance Policy with Plate Glass 95- 561 West Brickell Apartments;.Ltd. December 15, 1994 Page Eight endorsement in a minimum amount sufficient- to cover one Hundred. percent (100%) (before co-insurance) of the full replacement cost of all structures on the Mortgaged Premises, :together with, all fixtures, equipment, chattels, and personal property owned by Borrower and installed therein or appurtenant thereto, or otherwise attached to and a part of the real estate. If the Mortgaged Premises are in a Special Flood Hazard Area flood insurance must be provided in an equal amount to the .lesser of the outstanding principal balance of :the Loan or the maximum coverage available under the National Flood Insurance Program for the.particular type and location of Property to be mortgaged. In addition, Borrower shall maintain standard form Public Liability Insurance covering the Property in an amount acceptable to Lender. f. Borrower shall provide Bank with an opinion of Borrower's counsel in form, scope and substance satisfactory to Bank and Bank Is counsel. Said opinion shall include among other provisions: that the execution and delivery of the Loan Documents have been duly authorized, and that the same are valid, binding and enforceable in accordance with their terms and do not violate or contravene any statute or contractual restriction binding on; Borrower. g. Simultaneously with closing on the loan with the Bank, Borrower shall close on the "FHFA Loan" in the sum of $400,000 with the Florida Housing Finance Agency, $825,000 grant from City of Miami for purchase of property, and a $850,000 grant from Dade County Homeless Trust, proceeds of which shall be used to pay. A portion of the costs of construction. The FHFA Loan shall be subordinate and inferior to the loan described herein. h..Copies of the building permits. i Receipt of,a signed copy of the contract for construction of ;the .:improvements between Borrower, and a licensed General Contractor, acceptable to Bank, for a fixed price (the amount of - which sha1.1 be subject to Bank's approval) . Borrower shall ,also provide Bank with Payment and Performance Bonds for the work, written by .an insurance company authorized to do business: in the State of Florida, which insurance company shall be.satisfactory to Bank and its counsel. j. Borrower has deposited current funds in an interest bearin'• account with Bank, of at least $3,558,000 which Borrower shal�\ contribute towards the cost of construction and the interest; reserve as described herein, and satisfactory evidence to Bank ,W,M*1 West Brickell Apartments, -Ltd. December 15, 1994 Page Nine and. its counsel that Borrower has access to; funds in a sufficient amount to make the $593,000 deposit upon 50% completion and to make the principal payment reduction to Bank on conversion- to the. Permanent Phase,' which evidence may consist of the execution of an agreement to purchase the limitedpartnershipinterest of the Borrower by a "Tax Credit Fund". k. Borrower shall execute and deliver a conditional assignment to Bank ofthefunds described in Paragraph (k) above as security for performance of the obligations of the Borrower hereunder. 1. As a condition to close on the FHFA Loan, the State of Florida -requires additional funds from the Borrower of $1,059,600.00 ("Additional Funds"). Borrower may provide the Additional ..Funds, which requirement is also a condition of closing the Bank's loan under any of the three alternatives, or a combination thereof: (a) a third mortgage subordinated to Bank and FHFA Loans; (b) reduction of developer's fees; or (c) reduction of project costs, which shall substantially not, as determined by Bank in its discretion, diminish the quality and value of subject property. Z5'. �€azardous 'Oa*stes: The Borrower expressly represents to the Bank that the Property and the improvements thereonhavenot to the best of Borrower's knowledge, in the past been used, and are not. presently being used, and will not in the future be used for the handling, storage, transportation or disposal of hazardous or toxic. materials. The Borrower agrees to indemnify, defend and hold the Bank harmless from and against any loss, cost or ,expense incurred by the Bank, including without.limi.tation attorneys fees at both trial and appellate levels, incurred < by ,the Bank as a result of such past,. present or future use, handling, storage, transportation or disposal of,hazardous or toxic materials. The Borrower shall obtain, at the. Borrower's expense, prior to the Loan Closing, a report from a reputable environmental consultant approved by the Bank indicating that the Property has not has not been and is not .presently being used for the handling, storage, transportation or disposal of hazardous or toxic materials, the Bank may require that all violations of law with respect to hazardous or toxic materials be corrected and/or that the Borrower obtain I all necessary- environmental permits before the Bank Shall fund any advance under this Commitment Letter, or at its election, the Bank may terminate its obligations hereunder. 16. Americans With Disabilities Act: Mortgagor covenants and agrees that, during the term of the loan evidenced by the 1 95- 5161 �• 0414i, West Brickell Apartments', -Ltd. December 15, 1994 Page Ten Note, the Mortgaged Property is and will be in full compliance with the Americans With Disabilities Act ("ADA") of July 26, 1990, .42 U.S.C. Section 12191, et. seq. as amended from time to- time, and the regulations promulgated pursuant thereto. Mortgagor shall be solely responsible for -all ADA compliance costs, including without limitation, attorney's fees and litigation costs, -which responsibility shall survive the repayment of the loan evidenced by the Note and foreclosure of'the Mortgaged Property. This commitment letter carries an expiration date of June 30,'1995, in the event this loan does not close on or before said date. Along with your acceptance of our commitment we are to bo provided with. anon -refundable payment in the sum of $5,000.00 towards payment4 of the commitment fee, which commitment fee is paid as consideration for the issuance of this commitment. The balance of the commitment fee shall be deducted from the initial disbursement made at closing. Unless you accept this commitment within 10 days from the date hereof, this offer shall automatically terminate. Borrower agrees that said commitment fee is neither interest nor payment fof the use of money. Said commitment fee shall be paid_ to Bank in consideration of Bank's promise to -hold or reserve the amount of this commitment -and shall be earned upon the issuance of this commitment. If the transaction hereby contemplated is for any reason (other than Bank's default) not consummated pursuant to the terms of this commitment letter, the Bank shall have the right in its absolute discretion without the requirement of any notice to the Borrower, to retain the proceeds of the said commitment as .liquidated damages and not as a penalty. It is understood and agreed that no part of the commitment fee or cost deposit will be returned to the Borrower in any event, either by credit against Expenses (as herein defined) or otherwise, except in the event of the Bank's wi,l:full default in the performance of its obligations hereunder. However, upon closing of the loan, the commitment deposit shall be applied towards payment of the commitment fee payable to the Bank at the initial closing. .Bank shall be ui4er no obligation to close on this commitment if at the time of closing, this loan would exceed the Bank's legal lending -limit to any one Borrower. Bank reserves ,.the right to cancel this commitment and terminate its obligations hereunder at any time upon the happening of any of the following.events: a. Borrower's failure to comply with any of the applicable conditions of this commitment within the time specified. 3y 95- 561 1� West Brickell Apartments, Ltd. _ December 15, 1994 Page Eleven b. Non-payment of any of the fees or expenses to be paid by Borrower in connectin with this commitment. C. Any infirmity in Borrower's title to the real estate. The filing by or against Borrower of any petition in•bankruptcy or insolvency or for the reorganization of Borrower or the appointment of a receiver or trustee or --the making of an assignment for the benefits of creditors. d. KA_IVER OF JURY TRIAL. THE BORROWER, GUARANTOR AND L E N D E R HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY WITH REGARD TO ANY LITIGATION BASED ON THIS COMMITMENT, OR TO ANY OBLIGATION RESULTING FROM OR RELATED TO ANY.LOAN OR GUARANTY RELATING TO THIS COMMITMENT, OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF DEALING, COURSE OF -CONDUCT, STATEMENTS (WHETHER VERBAL 'OR WRITTEN), OR ACTIONS OF BORROWER, GUARANTOR OR LENDER. THIS PROVISION IS MATERIAL INDUCEMENT FOR THE LENDER ENTERING INTO THIS COMMITMENT. Very truly yours, CITY NAT L BA FLORIDA By: Clyarles Torres 'Senior Vice President 95- 561 PREPARED FOR Richard Fosmoen Executive Director Downtown Miami Community Coalition 330 Biscayne Boulevard Miami, Florida 33131 PREPARED BY BLAZEJACK & COMPANY 655 S.W. Miami Place Miami, Florida 33130-3008 Phone: (305) 372-0211 Fax: (305) 374-1948 95— 5161 ��. �e7 BLAZE)ACK&COMPAN nor n I rc-rn rr r'nI InISFI nR BILAZZEjACK+ COMPANY REAL ESTATE.CAUNsELORS t10ET%6M REAL ESTATE Bi0C1M l — Ady 24 LQ% Rkhad rvum= La�live i?stcLor Dowe kmm hfliarai Cam Cwfis m 330 m=YUC Bodcv=d Bf>ao�m, is 33Y3t. . ARmia of Rc d Piopg-No.94W ' NorCctaer of S.W. 2nd Am= & 1&Meet a Tama tray of o" we Bfini. Dock Coamdty, Plan& Ike W. rosmoesee " Atym rogmg, Ift hm completed a Emlbcd soope of tb-z about ward seal putty. Me *Mni d =Vc offrohd states ow ogi d= caf aces pmpe .s I Valaa Sjodt tioAs�daasaadlCo�dinaaseetfa�thvztbe�L T7e:pi�cai fiLv= m and analysis that: %ties basis of do sepw Imm bees by fim Ow a>salyses have boas pepan d is C=Frmm W& &a um'fixm Standards of Profi=wa:d Apt Pamew (L'AP� ne P=n8 mpmt p=dm=t &ta '== od in our is a and tin & a3s of the prommm =ad to win at = amduswa of vdn& As a res* of the =zimdm and sma r made, it is oar opinion near tbt Mid= Vgm of fire fee 4m* kuted is the poqcdy as ounly A19K Im ]a= HIMUS D'iWkWLY41YE 3$ODSANID WIJAW tS10) 6SSSW_M'samiPlace -Mart i.Rorida33130-3008•(30S)3T2-0211 ft6llaid4462-WO JUL,-26-1994 10:31 M.5 374 1948 / P.02 a