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76
CITY OF MIAMI, FLORIDA
INTEROFFICE MEMORANDUM
To Honorable Mayor and Members
of the City Commission
FROM Cesar H• Odlo
City Manager
DATE: ~~'~ ` ~ f~~~ FILE:
Discussion Item far
sus~ECT: City Commission Meeting
February 18, 1988
REFERENCES: OvertOWn Sltes
10 and 11
ENCLOSURES:
RBCOlQISNDATIOM:
It is respectfully recommended that the City Commission approve in
principle, the conveyance of two parcels of vacant land in the
Overtown neighborhood for the development of affordable sales
housing by St. John Community Development Corporation upon
completion of the site acquisition process. It is further
recommended that conveyance of the subject parcels be predicated on
a reimbursement provision for fifty percent (50$) of the City's
site acquisition costs, in addition upon submission within 180
calendar days from the date of this conditional award for the City
Administration's verification and the City Commission's review and
approval:
1) Verifiable evidence of firm commitment(s) for
- construction, and first and second mortgage home
purchase financing in accordance with the attached
proposal.
2) A firm project development schedule and marketing
plan.
3) Final project/unit plans and specifications.
4) Certification of not-for-profit corporate secular
- legal status.
BriCRGROUBD
In February of 1986, through Resolution No. 86-171, the City
Commission approved in principle, the 1986 Housing Action Plan for
the Overtown Target Area which recommended a strategy, for the
provision of new homeownership housing and the rehabilitation of
existing housing units in the Overtown neighborhood. Moreover, the
City Commission, through Resolution No. 86-171, directed the City
Manager to proceed in acquiring development sites for the
construction of homeownership housing in Southeast Overtown in
accordance with the 1986 Overtown Housing Action Plan and further
allocated 11th Year Community Development Block Grant funds to
defray the cost of site acquisition.
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Overtorm Sites 10 and it (cont'd.)
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As a result, two parcels of vacant land were identified by City
staff and endorsed by the Overtown Community Advisory Board for
acquisition by the City for the purpose of developing sales housing
affordable to low and moderate income families in the Overtown
neighborhood. Subsequently, the City retained the services of two
appraisers in order to determine the fair market value of the
subject parcels slated for acquisition. The fair market value.of
the subject parcels as determined by the appraisers are as follows:
HIGHEST
PARCEL NO. ADDRESS APPRAISBD VALUE
10-1 1233 N.W. 3rd Avenue $ 64,000
10-2 208-244 N.W. 13th Street 127,000
11 1300 N.W. 2nd Avenue 111,300
In November of 1986, through Resolution No. 86-886, the City
Commission directed the City Manager to proceed in acquiring Sites
10 and 11 through a negotiated settlement. Subsequently, purchase
and sales offers were forwarded to the owners of each of the
_ subject properties.
To date, the City has been successful in acquiring Site it for
$96,650 and currently has an executed purchase and sales agreement
for the purchase of Site 10-2. It is anticipated that City
ownership of Site 10-2 will be consummated on or before March 1,
1988 for $127,000. Staff has incurred some difficulties in
securing a purchase and sales agreement on the balance of site 10
due to a change in ownership as a result of a foreclosure suit
which was filed by the mortgagor. The total cost for acquiring
sites lfl and 11 is estimated at $287,650.
At the January I4, 1988 City Commission meeting, representatives of
St. John Community Development Corporation made a personal
appearance to request that both parcels of vacant land located at
Northwest 13th Street between 3rd Avenue and 2nd Court, be donated
to the neighborhood based community development corporation for the
development of a townhome project affordable to low and moderate
income families in the Overtown neighborhood. The Administration
was directed to return within thirty (30) .days.. with a
recommendation regarding St. ,john Community Development
Corporation's request.
The development proposal which has been
Community Development Corporation calls f
twenty eight (28) two story townhoo
aforementioned parcels. Each townhome un;
bedrooms with one and a half baths. The
which are being proposed would be marketed
the cost of the land.
submitted by St. John
it the construction of a
e development on the
t would consist of three
sale prices of the units
at $52,000, exclusive of
i.
Overtor+n Sites 10 and 11 (cont'd.)
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In addition, St. John Community Development Corporation proposes to
provide tandem home purchase mortgages to the prospective
homebuyers, with first mortgages to be provided from one or a
consortium of private lenders, and second mortgages provided
through the Metropolitan Dade County Documentary Surtax Program.
Using this tandem mortgage home purchase financing method, families
and individuals earning approximately $13,000 would be able to
qualify for the purchase of the unit priced at $52,000. Based on
the City securing a fifty percent (50$) reimbursement on its cost
for land acquisition ($5,000 per unit), families and individuals
earning approximately $16,000-$17,000 would be able to qualify for
the purchase of the unit priced at $57,000.
Although St. John Community Development Corporation's request is
somewhat premature as the City does not hold title to both parcels,
City Commission approval in principal on St. John Community
Development's request would afford the corporation an opportunity
to meet the March 15, 1988 submission deadline for funding
proposals under the Surtax Program from community based
neighborhood not-for-profit corporations.
Should the City Commission approve St. John Community Development's
request in principal, the recent charter amendment would in fact
allow the City Commission to waive the requirement for competitive
bidding for the disposition of Sites 10 and 11 as the intended
reuse of the properties is for sales housing affordable to low and
moderate income families and/or individuals.
While St. John Community Development Corporation lacks any previous
experience in the area of new housing development, the neighborhood
based non-profit corporation along with the East Little Havana
Community Development Corporation were selected to receive training
and technical assistance from the Enterprise Foundation in becoming
housing developers. As you may recall, the City of Miami entered
into an agreement for $250,000 with the Enterprise Foundation for
this purpose. In addition, in July of 1986, the City Commission
also approved a $50,000 administrative funding grant for the
purpose of assisting the neighborhood based non-profit corporation
in the implementation of both housing rehabilitation and new
housing development projects in Overtown.
In view of the critical need for new affordable homeownership
opportunities for low and moderate income families in the Overtown
neighborhood, the Administration recommends the conveyance of Sites
10 and 11 in principal, to St. John Community Development
Corporation subject to the conditions previously enumerated above.
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OvertoKn Sites 10 and it (cont'd.)
Page-4-
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Should the City Commission approve St. John Community
Development's request in principal, the recent charter amendment
would in fact allow the City Commission to waive the requirement
for competitive bidding for the disposition of the Sites IO and 11
as the intended reuse of the properties is for sales housing
affordable to low and moderate income families and/or individuals.
In view of the critical need for new affordable homeownership
opportunities for low and moderate income families in the Overtown
neighborhood, the Administration recommends the conveyance of Sites
10 and 11 in principal, to St. John Community Development
Corporation subject to the conditions previously enumerated above.
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SALE PRICE INFORMATION
Onit Construction Cost $49,405
Estimated Costs
Points --------- ------------- 750
Taxes --------- ------------- 540
insurance ---------------------- 300
Recording --------- ------------- 250
Title insurance ---------------------- 500
Doc. Stamps ---------------------- 234
sub total closing costs 2 57
total $51,979
Sales Price Per Qnit $52,000
Buyers Downpayment 2.600
Amount to be financed 49,400
Estimated Surtax Mortgage 30,000
Estimated First Mortgage 19,400
BiJYERS MONTHLY PAYMENT
First Mortgage 10.56 30 years .$178
Surtax Payment 25
Taxes 4I
Insurance 25
H.O.A. Fee 30
Total Monthly Payment $303
Annual Income Need at288 $13,000
SPI.RP
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FINANCING NEEDED-
Construction
Lisc Grant
EF Loan
Bank Loan
PERMANENT FINANCING
0
7,500.00
50,000.00
1..325.823.00
Total 1,383,323.00
Down Payments (2600 x 28)
First Mortgages (approx.)
Surtax Mortgages
Total
Estimated Closing Costs
Balance
72,800
543.200
840.000
2,456,000
72,072
1,383,928
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ST. JOHN TOWNHOMES 28 UNITS
Total Construeion Costs- 51,129,298
(including bond ~ contingency)
Sq. ft. per unit 1150
Total Building Sq. ft. 32,200
Construction Cost per Sq. ft. - S35
Total Soft Cost - 254,125
Soft Cost per Sq. ft. - 57.89
Total Cost per Sq. ft - 542.89
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