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HomeMy WebLinkAboutR-87-0093J-81-91 1/22/87 RESOLUTION NO. 8 7 - 9 3 A RESOLUTION DESIGNATING CODEC, INC., A NOT FOR PROFIT CORPORATION OR ORGANIZATION, TO UNDERTAKE THE DEVELOPMENT OF A LOW -DENSITY SALES TOWNHOME COMPLEX ON THE CIVIC CENTER SITE AFFORDABLE TO FAMILIES AND INDIVIDUALS OF LOW AND MODERATE INCOME; AND FURTHER DIRECTING THE CITY MANAGER TO REQUEST METROPOLITAN DADE COUNTY TO CONVEY TITLE TO THE SITE TO THE DESIGNATED SPONSOR/DEVELOPER SUBJECT TO CERTAIN TERMS AND CONDITIONS. WHEREAS, there exists, in the City of Miami, a severe shortage of homes within the affordability range of 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 sales housing within the affordability limits and purchasing power of families and individuals of low and moderate income; and WHEREAS, on February 4, 1976, the City Commission passed and adopted Ordinance No. 6515, which provided for the holding of a special bond election on March 9, 1976, for submitting to the qualified electors of the City the following question: "Shall bonds of the City of Miami in an amount not exceeding $25,000,000 be issued under Ordinance No. 8514, to provide housing in the City of Miami for families and persons of low or moderate income qualifying therefor under the then applicable law, by using the proceeds of the bonds to assist Dade County in financing such housing in the City of Miami, or to increase the security of any Dade County obligations issued for such housing in the City of Miami, such bonds to mature in annual installments not exceeding thirty (30) years from their respective dates, to bear interest at a rate or rates not exceeding the maximum lawful rate, at the time of sale, and to be payable from ad valorem taxes?"; and CITY COMMISSION MEETING OF. JAN �2�,1987� f WHEREAS, on March 28, 1976, the City Commission canvassed the returns of said special bond election, passed Resolution No. 76-339, which declared that a majority of the votes cast in such election were in favor of issuance of said bonds, and WHEREAS, the foregoing bond issue has been authorized and approved by law, and these bonds have been duly validated, issued and sold; and WHEREAS, pursuant to the foregoing laws, the City and Metropolitan Dade County, have subsequently entered into various agreements to provide City assistance and involvement to Dade County, for the provision of housing for low or moderate income families and persons; and, WHEREAS, pursuant to the above referenced laws and agreements, Dade County filed a Petition in County Eminent Domain proceedings, more particularly identified as Circuit Court Case No. 84-2738 (CA 14), instituted and maintained in the Circuit Court in and for Dade County, by which title to the Civic Center site as particularly described therein, was vested in the petitioner Dade County; and WHEREAS, the City Commission has determined that the publicly owned Civic Center site is locationally suited for development of sales housing; and WHEREAS, in September of 1986, the City Commission designated the Civic Center site for the development of a low - density townhome complex within the purchasing and affordability limits of low and moderate income families; and WHEREAS, on December 11, 1986, the City Commission received preliminary proposals from two organizations interested in developing such housing on the site; and WHEREAS, CODEC, Inc. has presented a development proposal most consistent with the City's development objectives for the site, as reflected in the attached memorandum from the City Manager; and -2- 87-9 3 } WHEREAS, pursuant to applicable laws and agreements, Metropolitan Dade County holds legal title to the Civic Center site; and, WHEREAS, 125.38, Florida Statutes, provides, in part, that any real or personal property owned by a county may be conveyed by the Board of County Commissioners to a corporation or organization not for profit upon any terms and conditions set by the Board of County Commissioners, which foster and promote the community interest and welfare; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY MIAMI, FLORIDA: Section 1. CODEC, Inc., a not for profit corporation or organization, is hereby selected to sponsor the development of a low -density, affordable townhome development on the Civic Center site subject to evidence of a firm construction financing commitment and conditional commitments for home purchase financing within the affordability limits of qualified low and moderate income families. Section 2. CODEC, Inc. is hereby directed to prepare and finalize project plans and specifications, construction and home purchase financing, unit prices, construction schedules and marketing plans which shall be submitted within 90 days of the date of this action for final consideration and approval by the City Commission. Section 3. Subject to receipt by the City of an affirmative opinion from bond counsel for the bonds issued, pursuant to Ordinance No. 8514, Brown, Wood, Ivey, Mitchell and Petty; and, further subject to compliance with Sections 1, 2 and 3 herein, the City Manager is directed to request Metropolitan Dade County to convey the Civic Center site in fee simple to the herein selected sponsor subject to certain terms and conditions, as set forth herein and as set forth in the attached City Manager's memorandum and as prescribed by the Metropolitan Dade County Board of County Commissioners. -3- 87-9 3 f PASSED AND ADOPTED this 22 ATT ktw MAT Y HIRAI CITY CLERK PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY -CITY ATTORNEY tad day of , 1 AND CORRECTNESS: LXCIA A. DOUGHERTY \ CITY ATTORNEY RFC/yv/bss/M322 Attachment XAVIER L. StZ MAYOR -4- 8 ) - 9 0 i CItY OF MIAMI. FLONICA INTER -OFFICE MEMORANDUM 23 TO Honorable Mayor and Members DATE' January 16, 1987 FILE: of the City Commission subJECT. Recommendations On Selec- tion of Sponsor For Affor- dable Housing Development: FRow: Cesar H. Odio REFERENCES! Civic Center Parcel City Manager ENCLOSURES: City Commission Agenda Item: January 22, 1987 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution conditionally designating CODEC, INC., a not for profit community development corporation, to undertake the development, marketing, and sale of homes within the affordability range of low and moderate income families and individuals on the Civic Center site, substantially in accordance with the proposal presented for City Commission consideration on January 8, 1987, with such final designation predicated upon submission within 90 calendar days from the date of this conditional award for the Administration's verification and the City Commission's review and approval: 1) A final site plan addressing, to the extent feasible within the City's objectives for development of the Civic Center site, the site planning concerns outlined in the Department of Planning's site plan analysis attached hereto as Exhibit A. 2) Final project/unit plans and specifications. 3) Verifiable evidence of firm commitment(s) for construction, and first and second mortgage home purchase financing in accordance with that proposed and presented to the City Commission on January 8, 1987. 4) A firm project development and marketing schedule, including a plan for insuring that all ethnic groups in Miami have equal access to information on the availability of, and the opportunity to, make application for the homes to be developed. 5) A project development cost analysis. 6) Certification of not for profit corporate legal status. 87-93 It is further recommended that upon final approval by the City Commission of the foregoing, and subject to agreement between the City of Miami and CODEC, Inc., on selling price and terms of conveyance, as ratified by the City Commission, Metropolitan Dade County be requested to convey the Civic Center site to CODEC, INC. BACKGROUND: On December 11, 1986, the City Commission was asked to approve a resolution designating the publicly owned Civic Center site for the development of low -density sales housing within the affordability range of low and moderate income purchasers, and further authorizing publication of a request for proposals from the building industry for the development of marketing of such housing. At that time, both CODEC, Inc. and the Allapattah Business Development Authority, with private sector co -developers Armando Cazo and Hector Pages, indicated interest in sponsoring the development of affordable sales housing on the Civic Center site. The sponsors of the two proposals were referred to staff for evaluation of site planning and conformance with zoning requirements. On January 8, 1987, the City Commission was asked to designate one of the two competing proposers to sponsor the development of affordable low -density sales housing on the site. Following presentations by both proposers, the City Commission directed the Administration to evaluate the proposals, as presented, and return to the Commission in two weeks with a recommendation. A comparative analysis of the two proposals has been undertaken by the Department of Planning with emphasis on site planning and zoning considerations, and by the Housing Conservation and Development Agency, with emphasis on project financing, dwelling unit characteristics, and housing affordability. The exhibits accompanying the attached resolution provide a detailed comparison of the major aspects of the two proposals. SITE PLAN: The Department of Planning has reviewed the preliminary site plans submitted by CUDEC, Inc., and the Allapattah Business Development Authority Joint Venture. The Department of Planning's analysis concludes that both site plans can be substantially improved, but that the site plan proposed by CODEC, Inc., is superior. The Department of Planning's site plan evaluation is attached hereto as Exhibit A. 2 87-93 GENERAL DEVELOPMENT CONCEPTS The proposal submitted by CODEC, Inc., calls for the development of a 96 unit garden apartment complex composed of three, three story structures, consisting of 24 two bedroom, and 72 three bedroom dwellings. The proposal submitted by the Allapattah Business Development Authority Joint Venture, calls for the development of 88 dwellings configured as two story townhomes over one story garden apartments, consisting of 24 one bedroom, 40 two bedroom, and 24 three bedroom dwellings. Both development proposals include recreation areas, internal vehicular circulation systems, and adequate on -site vehicular parking. In general development concept, the major differences between the two proposals are: - The CODEC, Inc. proposal offers more and larger dwellings configured as three story garden apartments in three individual buildings. - The Allapattah Business Development Authority Joint Venture proposal offers fewer and smaller dwellings, on the average, configured as two story townhomes over one story garden apartments. DWELLING UNIT CHARACTERISTICS: The CODEC, Inc. proposal offers the buyer homes that are slightly larger, on average, than those offered by the Allapattah Business Development Authority Joint Venture. On average, the homes offered by CODEC, Inc., are 14% larger that those offered by the competing proposer. The dwelling units offered by both proposers exceed minimum required livable space guidelines, and both contain standard appliances and central cooling/heating equipment. DWELLING UNIT SALES PRICE: The selling prices of the homes offered by CODEC, Inc., are, on average 40% lower than those offered by the Allapattah Business Development. Authority Joint Venture, but, on average, they are also 14% larger. On a per square foot basis, the CODEC, Inc. proposal offers the consumer the best value. On average, the 'roves offered by CODEC, Inc. are proposed to sell for $34.69 per square foot, while those offered by the competing proposer are proposed to sell for $48.35 per square foot. Exhibit B, provides a comparison of the key elements of the two proposals under consideration. 3 87-93 n AFFORDABILITY FACTOR: • Both CODEC, Inc. and the Allapattah Business Development Authority Joint Venture address the housing affordability factor by proposing tandem home purchase mortgages, with first mortgages provided through a private lender, and second mortgages provided through the Metropolitan Dade County Documentary Surtax Program. Using this tandem mortgage home purchase financing method, both proposers are able to offer affordable homeownership opportunities to families and individuals earning less than 80% of median income. Exhibit C provides an affordability analysis of the two proposals. PROJECT FINANCING: Both CODEC, Inc. and the Allapattah Business Development Authority Joint Venture, have provided either letters of intent or conditional commitments for project construction and first mortgage purchase financing. CODEC, Inc. is proposing to secure project construction financing through lst American Bank and/or Intercontinental Bank, local financial institutions. The Allapattah Business Development Authority Joint Venture, is proposing to secure construction financing through Matthews and Wright, a New York based firm and/or Bayamon Federal, a Puerto Rico based savings and loan. In both cases, construction financing is conditioned on home purchase mortgage financing. CODEC, Inc. proposes to secure first mortgage home purchase financing through M Bank, a local private financial institution. The Allapattah Business Development Authority Joint Venture, proposes to secure first mortgage home purchase financing through Matthews and Wright and Bayamon Federal. The first mortgage home purchase financing proposed by both groups is conditioned upon second mortgage home purchase financing through the Dade County Documentary Surtax Program. While both CODEC, Inc. and the Allapattah Business Development Authority Joint Venture propose to employ surtax financed second mortgage financing, neither group has a commitment for such financing. EMPLOYMENT DURING CONSTRUCTION: CODEC, Inc. intends to use conventional construction in the development of the garden apartment complex proposed, which, according to the proposer will create employment opportunities for approximately 50 workers. The tunnel form system construction proposed by the Allapattah Business Development :authority Joint Venture, will create 100 employment opportunities, according to the proposers. 0 R 7 - 9 3 -��^ CONCLUSION: The CODEC, Inc. proposal is recommended for the following reasons: .. The homes proposed by CODEC, Inc., offer a lower purchase price per square foot to the consumer. - CODEC, Inc. has proposed local participation both in construction and mortgage financing. S 87-93 0 0 EXHIBIT A CITY OP MIAMI, PLORiDA INTER -OFFICE MEMORANDUM to Jerry Gereaux, Director OATE: January 15, 1987 PILE: Housing Conservation and Development Agency SUBJECT: Melrose and Civic Center Sites FROM. REFERENCES: Rodriguez, Director 1 ann in g Department ENCLOSURES: Following instructions of the City Commission issued during their meeting of January 8, I am enclosing analysis of and recommendations . for housing projects for the Melrose and Civic Center area sites. SR/GEO/td td87/010 S 7 - 9 3 -ai PROJECT: Civic Center Site ZONING DISTRICT: RG-3/6 ZONING REQUIREMENTS/PROPOSALS: REQUIRED MTH ABDA Floor Area 1.21 .75 .75 Open Space .67 N/A N/A Living Space .41 N/A N/A Recreation Space .10 N/A N/A Car Ratio 1.1 1.46 N/A Both projects meet the toning requirements that can be evaluated with the informat on submitted. MWER AND TYPE OF UNITS: TYPE BEDROOMS BATHROOMS SQ.FOOTAGE CODEC ABDA CODEC ABDA CODEC ABDA CODEC ABOA A 1 1 620 A B 2 2 1 2 900 910 C 2 2 940 B D 3 3 1 3 1176 1120 Total SITE DESIGN CHARACTERISTICS: Type of Units Orientation of units Location on site Use relationship amenities. Landscaping Tree Survey Park ing CODEC Apartments Acceptable; except for building on 17th Street. Poor relationship with recreation area. Needs improvement. Shows improved recreation area. Not submitted Not submitted Distribution needs improvement. Number of spaces needs improvement. # OF UNITS CODEC ABDA 24 72 20 20 24 24 96 88 ABDA Townhouses and Apartments Needs improvement. , Deficient. Buildings are very long. Slightly better. Does not show recreation area. Not submitted Not submitted Number of spaces cannot be evaluated. Relationship of parking area to Building B needs improvement. Number of units Acceptable Acceptable 87-93 • • REEOM RATIONS s The Planning Department recommends the plans submitted by CODCC, Inc. because the overall site plan is better than the one submitted by the Allapattah Business Development Authority. The former shows an improved recreation area and a better relationship of the parking area to the dwelling units. It should be made subject to the following conditions: 1/ •Design buildings in groups 2/ Avoid long facades 3/ Avoid continuous parking area 4/ Avoid east -west exposure 5/ Include landscape plans 6/ Include site plan review by Planning Department 87-9 3 .4. • CITY OF MIAMI ExttEii� CIVIC CENTER SITE: HOUSING PROPOSAL FACT SHEET PROPOSAL A PROPOSAL B PROPOSAL SPONSOR JOINT VENTURE: ALLAPATTAH BUSINESS DEVELOPMENT AUTHORITY, INC-, A NOT -FOR -PROFIT CHO AND PRIVATE DEVELOPERS ARMANDO CAZO AND HECTOR PAGES CODEC, INC. A NOT -FOR -PROFIT (OMIOBITT DEVELOPMENT CORPORATION PHYSICAL CHARACTERISTICS I) Project Configuration 2 Story Townhomes over Garden Apartments 3 (3 Story Garden Apartment Building) 2) Construction Type/Method Tunnel Form System Concrete Block System 3) Number of Dwelling Units 88 96 4) Unit Mix 1 Bedroom 24 (1 Bedroom - 1 Bath) 2 Bedroom 20 (2 Bedroom - 2 Bath) 2 Bedroom 20 (2 Bedroom - 2 Bath) 24 (2 Bedroom - 1 Bath), 3 Bedroom 24 (3 Bedroom - 2 Bath) 72 (3 Bedroom - 2 Bath) ! S) aD Unit Size: 1 Bedroom 620 square Feet `4 2 Bedroom 910 Square Feet 2 Bedroom 940 Square Feet 900 Square Feet 4t 3 Bedroom 1,170 Square Feet 1,I76 Square Feet M D 0 EXHIBIT B f J %W ON JOINT VBNTURB: ALLAPATYAH PROPOSAL SPONSOR BUSINESS DEVELOPMENT AUTHORITY, INC. CODEC, INC. A NOT -FOR -PROFIT CHO AND PRIVATE A NOT -FOR -PROFIT CtMUNITY DEVELOPERS ARMANDO CAZO AND HECTOR PAGES DEVELOPMENT, CORPORATION PHYSICAL CHARACTERISTICS 6) Unit Amenities Refrigerator, Electric Range, Refrigerator, Electric Range, / Dishwasher, Garbage Disposal, Central Air, Washer -Dryer Central Air, Washer -Dr er Hook-U Hook-U 7) Project Amenities Swimming Pool, Clubhouse, Tot Lot Swimming Pool, Pool Pavilion:, Clubhouse, Barbecue Area, Tot Lot 8) Parking Spaces (per unit) Information Not Available 1.4 Spaces Per Unit 9) Base Unit Sales Price 1 Bedroom $29,995 2 Bedroom $43,995 2 Bedroom $46, 995 $31, 900 'r 3 Bedroom $54,995 $39,900 IO) Base Unit Sales Price Per Sq. Pt. (average) $48.35 $34.69 40 VA I EXHIBIT B CITY OF Mimi CIVIC CENTER SITE: HOUSING PROPOSAL REVIEW PFAU]= Flamm ]PROPOSAL A PROPOSAL B 11) Construction Financing Matthews & Wright, Inc. (Conditional Commitment) First American Bank (Statement Bayamon Federal Savings & Loan Association of of Intent) Puerto Rico (Statement of Intent) Intercontinental Bank (Statement of Intent) 12) Mortgage Financing Matthews & Wright, Inc. (Conditional Commitment) M Bank (Statement of Intent) Financial Research Services (statement of Intent) First mortgage Financing Bayamon Federal Savings & Loan Association of Puerto Rico (Statement of Intent) Second Mortgage Financing Documentary Surtax (Proposed) Documentary Surtax (Proposed) 1) CIVIC CENTER SITE AFFORDABILITY ANALYSIS NO LAND COST REIMBURSEMENT A - JOINT VENTURE: ALLAPATTAH BUSINESS DEVELOPMENT AUTHORITY, INC., A NOT -FOR -PROFIT CBO AND PRIVATE DEVELOPERS ARMANDp CAZO AND HECTOR PAGES B - CODEC, INC. A NOT -FOR -PROFIT DEVELOPMENT CORPORATION A A B ONE BEDROOM Base Sales Price 29,995.00 Cost Per Square Foot 48.38 First Mortgage 13,497.75 Second Mortgage 14,997.50 First Mortgage P & I 118.45 Second Mortgage Interest 25.00 Association Fees 49.00 Insurance 20.00 Taxes 72.21 TOTAL MONTHLY COST 284.66 INCOME REQUIRED TO SUPPORT DEBT 10,351.00 TWO BEDROOM Base Sales Price 43,995.00 46,995.00 31,900.00 Cost Per Square Foot 48.35 49.99 33.93 First Mortgage 15,398.25 17,145.25 11,165.00 Second Mortgage 26,397.00 27,500.00 19,140.00 First Mortgage P & I 135.13 150.46 93.88 Second Mortgage Interest 25.00 25.00 25.00 Association Fees 49.00 49.00 28.00 Insurance 20.00 20.00 20.00 Taxes 105.91 113.13 76.80 TOTAL MONTHLY COST 335.04 357.59 243.68 INCOME REQUIRED TO SUPPORT DEBT 12,183.00 13,003.00 8,861.00 THREE BEDROOM Base Sales Price 54,995.00 39,900.00 Cost Per Square Foot 47.00 33.93 First Mortgage 19,245.25 11,970.00 Second Mortgage 33,000.00 25,935.00 First Mortgage P & I 100.65 Second Mortgage Inter -sip 25.00 Association Fser, 49.00 43.00 Insurance 20,00 20.00 Taxes 132.39 96.05 TOTAL MONTHLY COST 395.28 284.70 INCOME REQUIRED TO SUPPORT DEBT 14,374.00 10,353.00