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Home My WebLink AboutR-88-0154J-88-168 2/18/88 RESOLUTION N0. FiS-154 A RESOLUTION EXTENDING THE DEADLINE FOR INITIATION OF CONSTRUCTION TO JUNE 15, 1988, FOR PARCEL NO. 37 OF THE SOUTHEAST OVERTOWN/PARK WEST, PHASE I REDEVELOPMENT PROJECT; SAID EXTENSION TO RE MADE PART OF THE LAND DISPOSITION AGREEMENT BETWEEN THE CITY OF MIAMI AND CAN-AMERICAN REALTY CORPORATION; AND FURTHER DECLARING THAT IF SAID CONSTRUCTION DEADLINE IS NOT MET, CAN AMERICAN REALTY CORPORATION, LOSES ITS DEVELOPMENT RIGHTS IN PARCEL NO. 37 OF SAID PROJECT. WHEREAS, the City Commission by Resolution No. approved, in principle, the Southeast Overtuwn/Park Redevelopment Plan; and 82-755 West WHEREAS, the City Commission by Resolution No. 84-893 authorized the City Manager to issue a Request for Unified Development Project Proposals for Phase I of the Southeast Overtown/Park West Redevelopment Project; and WHEREAS, proposals were received and evaluated by a certified public accounting firm and by a selection review committee appointed by the City Commission; and WHEREAS, the City Manager considered the findings of the certified public accounting firm and the evaluations of the selection review committee and recommended development entities and proposals for acceptance for the Phase I development parcels; and WHEREAS, the City Commission by Resolution No. 85-478 approved the City Manager's recommendation of Can -American Realty Corporation as the development entity to develop Parcel No. 37 of the Phase I Redevelopment Area in accordance with the development proposal submitted and in compliance with the Unified Development Project procedures as set forth in the City of Miami Charter, Section 5 3 (c) ; and CITY COMMISSION MEETING OF FEB IS 1988 A RESOWT11IN Nn 88�1454 f j� {; ? WHEREAS, the City Commission by Resolution No. 85-393, I1V . i` directed the City 3anager to negotiate a land disposition ti! 1 'i agreement with Can —American Realty Corporation, and to present ''. to the City Commission for approval; and the negotiated agreement :1 } WHEREAS, the City Commission by Resolution No. 86-952, approved the land disposition agreement with Can —American Realty Corporation; and f. WHEREAS, it was the City Commission's intent that the s.! development agreement with Can —American Realty Corporation, was subject to the following requirements: 1. The City must obtain a satisfactory residual reuse appraisal specifying that the rental payments due under the agreement are not less than fair value for the uses in accordance with the Southeast Overtown/Park West Redevelopment Plan. 2. Can —American Realty Corporation, must initiate construction within one year of the February 12, 1987 City Commission approval of the land disposition agreement. 3. The City Manager must review the development entity's Minority Participation Plan to insure that all major subcontractors have been identified and that sufficient evidence have been provided concerning efforts to meet the City's minority participation goals for the Southeast Overtown/Park West Redevelopment Project; and WHEREAS, due to unforeseen financial and administrative obstacles, it has been impossible for Can —American Realty Corporation, to start construction one year from November 25, 1986, the date the City Commission approved the land disposition agreement; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Page 2 88--154 a Section 1. Can -American Realty Corporation, is hereby authorized to extend the deadline for fniti.ation of construction to June 15, 1988, for Parcel No. 37 of the Southeast Overtown/Park West Phase I Redevelopment Project; said extension to be made part of the land disposition agreement between the 1/ City of Miami, and Can American Realty Corporation. — Section 2. The City Commission hereby declares that if Can -American Realty Corporation has not commenced construction by June 15, 1988, its development rights for Parcel No. 37 in Phase I of the Southeast Overtown/Park West Redevelopment Project are null and void. Section 3. The execution of the land disposition agreement between the City of Miami and Can -American Realty Corporation, will remain subject to the following requirements: a. The City must obtain a satisfactory residual reuse appraisal specifying that the rental payments due under the agreement are not less than fair value for the uses in accordance with the Southeast Overtown/Park West Redevelopment Plan. b. The City Manager must review the development entity's Minority Participation Plan to insure that all major subcontractors have been identified and that sufficient evidence have been provided concerning efforts to meet the City's minority participation goals for the Southeast Overtown/Park West Community Redevelopment Project. PASSED AND ADOPTED THIS 18th day of February, 1988. 1/ A building permit must be obtained by June 15, 1988; further, unless 353 residential units are completed by June 15, 1990, the development entity shall be required to show cause why a payment of $1,000 should not be as- sessed for each day thereafter until said units ha been complete ATTEST:— • XAVIER L. SU • , HAYOR MATTY HIRAI, CITY CLERK PREPARED AND APPROVED BY: APP VE AS TO FORM AND CORRECTNESS: ROBERT F. CLARK UCI . DOUGHERTY CHIEF DEPUTY CITY ATTORNEY CITY ATTORNEY Page 3 88-154 ^ 47 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM REVISED ro Honorable Mayor and Members DATE! of the City Commission SUBJECT 9 FROM � REFERENCES Cesar H. Odio City Manager ENCLOSURES C RECOMMENDATION: January 27, 1988 MLE, Comm eticement of Construction Extension for Can -American Realty Corporation Southeast Overtown/Park West -Phase I February 11, 1988 City Commission Meeting It is respectfully recommended that the Miami City Commission approve the attached resolution extending the deadline for the initiation of construction to June 15, 1988 for Parcel No. 37 of the Southeast Overtown/Park West -Phase I, Land Disposition Agreement between the City of Miami and Can -American Realty Corporation; and further declaring that if said construction dateline is not met, Can -American Realty Corporation, looses its development rights for Parcel 37 of said project. The Department of Development recommends this extension based on the efforts made by the developer to secure financing to initiate this project. A status report on this development project is attached her ein. BACKGROUND: The Department of Development recommends the proposed extension, based on the efforts made to date by the developers and the City of Miami, to implement this project. Tne Miami City Commission (Resolutions 85-393 and 85-478) and Dade County (Resolution R- 999-85) selected Phase I, developers for the Southeast Overtown/Park West Project. Pursuant to this approval the City initiated the acquisition of 71 remaining parcels in the 28+ acre Phase I redevelopment area. The relocation and demolition of the last structure occurred in July 1987. During the last 3 years the City has aggressively worked to assist the developers with additional support for their projects. These efforts have resulted in the following financial support for the project: $5,600,000 - UDAG Grant- Cruz Levelopment and Associates, LTD. $4,500,000 - UDAG Grant- Can -American Realty Corporation $1,500,000 - Dade County Surtax Loan- Cruz Development and Associates $1,078,C,00 - Dade County Surtax Loan- Can -American Realty Corporation fl8-154. Honorable Mayor and Members of the City Commission { January 27, 1988 Page 2 $7,500,000 - CD Float- Can -American Realty Corporation $ 500,000 - CD Float Loan- Indian River Investments $1,000,000 - Surtax Homeownership Loan- Indian River Investment - Favorable Consideration 1986 Tax Act The Miami City Commission approved the disposition agreements for Indian River by Resolution No. 86-110 adopted February 13, 1986; Can American by Resolution No. 86-952, adopted November 25, 1986; Circa/Barness/Sawyer by Resolution No. 87-141.1, adopted February 12, 1987; and Cruz Development and Associates, LTD., Resolution No. 87-141, adopted also on February 12, 1987. In approving the development agreements, the City Commission required that Can -American Realty Corporation, Cruz Development and Associates, LTD., and Can -American Realty Corporation, initiate construction within one year of the date of Commission approval which was February 12, 1987. The other developer is expected to initiate construction in a timely manner. As of this date the status of the Phase I development projects is as follows: Developer: Circa/Barness/Sawyer, a General Partnership Development: The Odessa - Parcel 55 East Status: Bidding is currently underway and the project is being reviewed for FHA Co -Insurance by Poller Mortgage/R.J. McClendon Co. A favorable reply anticipated. Ground. Breaking is scheduled for late March/early April. Developer:* Can -American Realty Corporation Development: Park Place West Status: Plans have been completed to the Design Development Phase and the developer is negotiating for Equity Financing with a local investor. The successful conclusion of this will allow related — aspects of the projects financing to take place and Ground Breaking is therefore anticipated in -, May 1988. Developer: Cruz Development and Associates, Ltd. Development: Biscayne View Apartments Status: Negotiations (which include the amount of the mortgage) are currently underway with FHA for completion of FHA Insurance for the entire project. Assuming a successful conclusion Ground Breaking is anticipated in March 1988. 98-154, ,ON A"N Honorable Mayor and Members of the City Commission January 27, 1988 Page 3 Developer: Indian River tnvestments of Miami, Inc. Development: Poinciana Village Status: Bids from subcontractors are anticipated February 22, 1988. Assuming a favorable outcome Ground Breaking will be scheduled for late February or early March 1988. As a result of the changes in the real estate syndication market stemming from the new 198.6 Tax Act and a reluctance of the local banks to participate in this project, it was necessary for the Phase I developer to obtain FHA guaranteed financing which has slowed their progress in moving forth with construction. Based on the efforts made by the developers, the complexity of this project and investments made by the developers to date it is recommended that the date to initiate construction for Parcel 37 be extended to June 15, 1988, for Can -American Realty Corporation. Attachment Proposed Resolution 10, 98-154. SOUTHEAST OVERTOWN / PARK WEST REDEVELOPMINT PROJECT MONTHLY STATUS REPORT FOR JANUARY /1988 Developer: CAN-AMERICAN REALTY CORPORATION NORTHPORT DEVELOPMENT CORPORATION Contact Person: Richard S. Kahn Telephone: (6i.2) 1�8-8d29 Name of Development: Park Place West Parcel Number: 37 I. BACKGROUND INFORMATION A. Number of Units in Phase I: 356 B. Type of Residential Units / Mix: Type Square footage Proposed Rent 1. Studio 2. One Bedroom (108) 600 535 3. Two Bedroom (248) 900 700 4. Three Bedroom 5. Other C. • Commercial Square footage: -Q- D. Number of Parking Spaces: 470 y 88-154, ?"t eN Can American Monthly Status Report Jan. /1988 Page two E. Tenant Amenities: Type Number Location 1. Service Clothes wash er/dryer 10/ 10 Ground floor Park Place East Clothes washer/dryer 15/14 Ground floor Park Place Hest Trash chute 1 per building Dish washer 1 each unit. Garbage disposal 1 each unit. 2. Recreational Tennis courts 2 common area. Swimming pool 1 common area. Party rooms 2 common area. Exercise Room 1 common area. Running track 1 common area. II. PROJECT IMPLEMENTATION A. 1. Source and Status of Financing: a) Tax-exempt bonds secured either by co-insurance or a Letter of Credit issued by a major National Money Center Bank in progress. Final Applications pending requirement of Equity Financing. 2. Agreements: a) Disposition Agreement: sent to Developer. Final comments required for processing. B. Planning and Design Issues: None 98-154. Can American Monthly Status Report Jan./ 1988 Page three Architects: Name/Address/Phone Harry Olsen Winsor/Faricy 28 W. 5th Street St. Paul, MN 55102 (612) 227-0655 Willy Sermello Bermello, Kurki & Vera 55 Almeria Avenue Coral Gables, F1. 33134 (305) 447-0009 Engineers: Ramon Donnell DeZarraga, Donnell & Dufresne 131 Madeira, #203 Coral Gables, FL. 33134 (305)445-8995 Carlos Chartrand Martinez & Associates, PA 2025 SW 32nd Avenue Miami, FL. 33145 (305)448-7271 Landscape Architects: • Albert Perez Albert R. Perez & Associates 801 Madrid St., #1078 Coral Gables, FL. 33134 (305) 445-9223 Other M, 88--154, r� t� Can American Monthly Status Report Jan./ 1988 Page four Status/Schedule of Plans and Specifications: (monthly status report must be accompanied by one set of dated progress prints) There have been no changes in the plans from the set recently submitted to the City. STATUS Schematic Design Completed Design Development Completed Construction Documents Dry -Run for Building Permits Design Review - Development and Planning Depts. Special Zoning/Permitting Requirements Bidding Ground Breaking Commencement of Construction Beneficial Occupancy Completion of Construction C. STATUS OF CONSTRUCTION CONTRACT: Name/Address of General Contractor: L. Milton Construction Corporation 2700 SW 23rd Terrace Miami, Florida 33145 PROPOSED COMPLETION DATE June, 1988 (this will be a fast track project) Late March, 1988 Late March, i988 To be determined April, 1988 Way, 1968 May, 1988 June, 1989 ( first tower) September, 1989 (second tow September, 1989 FA SS —154 Can American Monthly Status Report Jan./ 1988 Page five Contact Person: Armando Perez telephone:(305) 444-8326 Subcontractors: Not yet selected. Final Bidding will begin once funding is completely secured. Name/Address/Phone Trade Ethnicity Est. Contract Value 1. 2. 3. 4. 5. List of Ongoing Problems/issues and Proposed Resolution 1. Equity Financing is still being sought. 2. Extension for UUAG Grant needed to be done by City. 3. 1/26/88 <seotpw>monthly/status/report • vt