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HomeMy WebLinkAboutR-88-0158J-88-170 2/18188 RESOLUTION NO. $9�15F A RESOLUTION EXTENDING THE DEADLINE FOR INITIATION OF CONSTRUCTION TO JUNE 15, 1988; - ESTABLISHING A CONSTRUCTION PERIOD OF NO MORE THAN TWENTY-FOUR (24) MONTHS; SETTING A PROVISION TO LET THE DEVELOPER SHOW JUSTIFIABLE CAUSE AS TO ITS INABILITY TO COMPLETE THE PROJECT ON TIME AND REQUIRING A - PENALTY OF $1,000 EACH DAY THE PROJECT IS LATE FOR PARCEL NO. 24 OF THE SOUTHEAST OVERTOWN/PARK WEST, PHASE I REDEVELOPMENT PROJECT; SAID TIME REQUISITES TO BE MADE PART OF THE LAND DISPOSITION AGREEMENT BETWEEN THE CITY OF MIAMI AND CRUZ DEVELOPMENT AND ASSOCIATES, LTD. FOR CONSTRUCTION OF 486 UNITS; FURTHER DECLARING THAT IF SAID CONSTRUCTION COMMENCEMENT DEADLINE FOR PARCEL NO. 24 IS NOT MET, CRUZ DEVELOPMENT AND _ ASSOCIATES, LTD. LOSES ITS DEVELOPMENT RIGHTS IN PARCELS 24, 28 AND 36 OF SAID PROJECT. WHEREAS, the City Commission by Resolution No. 82-788 approved, in principle, the Southeast Overtown/Park West Redevelopment Plan; and 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 publio 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 CITY COMMISSION MEETING OF FEB 188�19988/8 IN No. 00'—J 'KtMAKAS: 1 i WHEREAS, the City Commission by Resolution No. 85-393 approved the City Manager's recommendation of Cruz Development and Associates, Ltd., as a limited partnership, as the development entity to develop Parcel No. 24, Parcel No. 25 and Parcel No. 36 of the Phase i Redevelopment Area in acoordanoe with the development proposal submitted and in compliance with the Unified Development Project procedures as set forth in the City of Miami Charter, Section 53(o); and WHEREAS, the City Commission by Resolution No. 85-393, and directed the City Manager to negotiate a land disposition agreement with Cruz Development and Associates, LTD. and to present the negotiated agreement to the City Commission for approval; and WHEREAS, the City Commission by Resolutions No. 87-141 approved the land disposition agreement with Cruz Development and Associates, LTD.; and WHEREAS, it was the City Commission's intent that the development agreement with Cruz Development and Associates, LTD. was subject to the following requirements: I. 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. Cruz Development and Associates, LTD. 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 - 2 - 4k evidence have beenprovided concerning efforts to meet the City's minority participation goals for the Southeast Overtown/Park West Redevelopment Project. WHEREAS, due to unforeseen financial and administrative obstacles, it has been impossible for Cruz Development and Associates, LTD. to start construction one year from February 12, 1987, the date the City Commission approved the land disposition agreement; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. Cruz Development and Associates, LTD. is hereby directed to initiate construction of 486 units by June 18, 1988, in Parcel No. 24 for the Southeast Overtown/Park West Phase I Redevelopment Project, said construction to be completed in twenty-four (24) months or by July 1990; said time requisites to be made part of the land disposition agreement between the City of Miami and Cruz Development and Associates, LTD. Section 2. The City Commission hereby requires that Cruz Development and Associates, LTD. pay a penalty of $1,000 for each day the project is not completed after July 1990; said penalty to be imposed if said developer can't show justifiable cause as to its inability to complete the project on time. Section 3. The City Commission hereby declares that if Cruz Development and Associates, LTD. has not oommenoed construction by June 18, 1988, its development rights for Parcel No. 24, Parcel No. 25 and Parcel No. 36 in Phase I of the Southeast Overtown/Park West Redevelopment Project are null and void. Section 4. The execution of the land disposition agreement between the City of Miami and Cruz Development and Associates, LTD. will be subject to the following requirements: a. The City must obtain a satisfactory residual reuse appraisal specifying that the rental - 3 - 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 each 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 abruarz_, 1988. off"- BAVIER L. SUARIt, MAYOR ATT T NATTY HIRAI, CITY CLERK PREPARED AND APPROVED BY: APPROVED AS TO FORM AND CORRECTNESS: ROBERT F. CLERK I A. CHIEF DEPUTY CITY ATTORNEY MTY AM NS:ar:bss:N640 - 4 - a & 49 CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM REVISED rZ ------ Honorable Mayor and Members DATE: of the City Commission SVBJECT: FROM REFERENCES: Cesar H. Odi ENCLOSURES City tdanager RECOMMENDATION: January 27, 1988 FILE: Commencement of Construction Extension for Cruz Development & Associates, LTD., 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, 1968 for Parcel No. 24 of the Southeast Overtown/Park West -Phase I, Land Disposition Agreement between the City of Miami and Cruz Development and Associates, LTD; and further declaring that if said construction dateline is not met, Cruz Development and Associates, LTD., looses its development rights in Parcel 24, 25 and 36 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 herein. 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. The 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 Development and Associates, LTD. $4,500,000 - UDAG Grant- Can -American Realty Corporation $1,500,000 - Dade County Surtax Loan- Cruz Development and Associates $1,078,000 - Dade County Surtax Loan- Circa/Harness/Sawyer, a General Partnership Honorable Mayor and Members of the City Commission January 27, 1988 Page 2 $7,500,000 CD Float- Circa/Barness/Sawyer, General Partnership $ 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 by Resolution No. 87-141, adopted also on February 12, 1987, In approving the development agreements, the City Commission required that Cruz Development and Associates, LTD., Can -American Realty Corporation and Circa/Barness/Sawyer, a General Partnership 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. '2- 98-158 Honorable Mayor and Members of the City Commission January 27, 1988 Page 3 Developer: Indian River Investments 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 1986 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 at Parcel 24 be extended to June 15, 1988, for Cruz Development and Associates, LTD. Attachment Proposed Resolution 3 88-158 .1% P SOUTHEAST OVERTOWN / PARK HEST REDEVELOPMENT PROJECT MONTHLY STATUS REPORT FOR JANUARY /1988 Developers CRUZ DEVELOPMENT CORPORATION Contact Person: John B. Cruz, III Telephone: (617) 445-6901 Barbara A. Ragland Name of Development: Biscayne View Apartments Parcel Number: 24 _ I. BACKGROUND INFORMATION A. Number of Units in Phase I: 463 Be Type of Residential Units / Mix: See attachments Type (Number) Square footage Proposed Rent 1. Studio - G - 2. One Bedroom (154) 597-861 $334-$652/mo 3. Two Bedroom (284) 754-1200 $376-$746/mo 4. Three Bedroom (25) il53.4-1357.9 $417-$905/mo 5 . Other C. Commercial Square footage: 20,000 s.f. D. Number of Parking Spaces: 467 E. Tenant Amenities: Type Number Location 1. Service Dishwasher 1 each unit Garbage Disposal 1 each unit 2. Recreational Pool i Comnon area Health Club 1 Rooftop Reception Room I Rooftop L� �i8-15t9. Cruz Development Corp. Monthly Status Report Jan. /1988 Page two II. PROJECT IMPLEMENTATION A. 1. Source and Status of Financing: a) FHA/HUD insurance program - in conditional processing; expect commitment for condition in January, then 30-60 days to firm commitment and closing. b) HUD UDAG in place c) Surtax monies in place; the Developer is preparing documents for Dade County. 2. Agreements: a) Disposition Agreement - returned to City for review, which is underway. B. Planning and Design Issues: None Architects: Name/Address/ Phone Charles Perez Stull and Lee Associates 100 Boylston Street, 4th Floor Boston, MA 02116 (617) 426-0406 James Meyer Rodriquez, Khuly, Quiroga 4440 Ponce De Leon Blvd. Coral Gables, FL 33146 (305) 448-7417 Engineers: Carlos Chartland Martinez and Associates 2025 Southwest Miami, FL. 33130 (305) 448-7271 +�8-158 0 Cruz Development Corp. Monthly Status Report Jan./ 1988 Page three Raoul Puig Cantor, Seinuk, Puig and Assoc. 10700 N. Kendall Drive Miami, FL. 33176 (305) 569-3594 Landscape architects: Charles A. Alden 7905 S.W. 162nd Street Miami, FL. 33157 (305) 251-1668 Other Status/Schedule of Plans and Specifications: (monthly status report must be accompanied by one set of dated progress prints) STATUS PROPOSED COMPLETION DATE ® Schematic Design 100% complete Design Development 100% complete • Construction Documents 90t complete January 29, 1988 Dry -Run for Building Permits 90% complete ' begun 11/20/87 Design Review Development & Planning Departments in progress February 15, i988 Special Zoning/Permitting Req. Class C required February 15, 1988 _ Bidding in progress March JO, 1988 Ground Breaking March 1988 Commencement of Construction April 1988 I �8iJr8 i Cruz Development Corp. Monthly Status Report Jan./1987 Page four Beneficial Occupancy Jan. 1990 Completion of Construction Jan. 1990 C. STATUS OF CONSTRUCTION C014TRACT: Name/Address of General Contractor: Edward Gerritt Inc. 3465 NW Second Avenue Miami, FL. (305) 573-2465 Contact Person/telephone: Patrick Gerritt In process of negotiating on price. Subcontractors: List in progress, soliciting bids for project. Name/Address/Phone Trade Ethnicity Est. Contract Value 1. 2. 3. 4. ' 5. List of Ongoing Problems/Issues and Proposed Resolution 1. We are presently having two real estate consulting firms, Keith Kramer Associates, and Rhenhold Wolff Associates perform rent and expense comparables for the project, in order to substantiate the rents we projected to HUD. 7 0 Cruz Development Corp. Monthly Status Report Jan:/1987 Page five 2. F.H.A. requires statement regarding the absence of hazardous material on site. The City has selected E.R.M. - South to carry out the work. The Developer is working on an appropriate and acceptable statement with the consultants. 3. With a Development Agreement in hand the need for a major Use Special Permit is questionable. The City will pursue resolving this. 1/ 26/ 88 <seotpw),monthly/status/report 98-158.