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Home My WebLink AboutO-10205I2/2/B0 ORDINANCE. NO. 0 . AN ORbINANCE APPROPRIATING FEDERAL URBAN DEVELOPMENT ACTION GRANT FUNDS (UDAG) FOR USE AS A SUBORDINATE LOAN TO CAN-AMERICAN REALTY CORPORATION AS PARTIAL FINANCING FOR THE CONSTRUCTION OF A 350-UNIT RENTAL HOUSING APARTMENT COMPLEX ON PARCEL 37 OF THE PHASE I REDEVELOPMENT AREA OF THE SOUTHEAST OVERTOWN/PARK TEST REDEVELOPMENT PROJECT. WHEREAS, the City Commi ssi on authori zed, by Resolution No. 85-752 on July 18, 1985, the submission of an application for an 'Urban Development Action Grant (UDAG) to the United States Department of Housing and Urban Development (HUD) to provide subordinate financing for a rental housing project to be built by Can-Amercian Realty Corporation on Parcel 37 of the Phase I Redevelop ment Area of the . Southea'st Overtown/Park West Community Redevelopment Project; and WHEREAS, a Preliminary UDAG Grant Award in the amount of $4,500,000 for said application.was announced by HUD on July 3, 1986; and 'WHEREAS, a Grant Agreement has been prepared by HUD for execution by' the. City as Recipient NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION 'OF THE CITY OF MIAMI, FLORIDA: Section 1 An Urban Development Action Grant in the amount of $4,500,0009 approved by the.: United States. Department of Housing and Urban Development as Grant No.. B-86-AA-12-00833, is.- hereby appropriated for use as a subordinate loan to Can -American: Realty Corporation for the construction of a 350-unit rental apartment housing complex on Parcel 37 of the Phase I Redevelopment Area of the Southeast Overtown/Park West Redevelopment Project as provided for by the terms and conditions of the Grant Agreement for said Grant. r. 6 INTER -OFFICE MEMORANDUM4 `a.,t Honorable Mayor and Members. DEC 5 1Wu of the Ci ty Commi ssi on u.: UDAG (I) Grant AgreeMen.t Southeast Overtown/Park West Cesar H. Odio December'll, 1986 Commission City, ity Manager (? Agenda - RECOMMENDATIONt = It i s . respectfu11y recommended that , the Ci ty Commissi on adopt the attached Ordinance and Resolution, appropriating the sum of $4,500,000, and authorizing the City Manager to execute on behalf of the City a Grant Agreement, in a form acceptable to the City = Attorney, twith the United States Department of Housing (`HUD) for an' Urban Development Action Grant (UDAG), which will provide S4,500,00O to the City of Miami to be used as a subordinate loan to Can - American' Realty Corporation for the construction of a 3 5 0 - u n i t rental' apartment complex on Parcel 37 of the Phase I.Redevelopme.nt Area of the Southeast. Overtown/Park West Community Redevelopment Project; and authorizing the City Manager 'to accept the UD,AG and - execute a, loan agreement with Can -American. Realty Corporation based on the terms of the Grant Agreement between the City and HUD. BACKGROUND: The Department of Development,,. in consultation with the Law Department and the. Community: Development Department, has analyzed the Grant Agreement prepared by HUD, a draft copyof whiCh is attached, and recommends execution of this agreement in a form acceptable to the City Attorney. - Execution of the UDAG(I) Grant Agreement between the City and'HUD , acceptance of the UDAG from HUD, and execution of an agreement to loan the UDAG funds to Can -American Realty Corporation in accordance with the Grant' Agreement are all necessary steps to allow construction to commence. on Parcel r37 of the Phase I Redevelopment Area of the Southeast Overtown/Park West Community Redevelopment Project in accordance with the Development Agreement for' Parcel 37, which the Commission authorized on November 25, 1986. 0 Honorable Mayor and Members of the City Commission Page 2 The UDAG for this project received preliminary grant approval from HUD on July 3, 1986. The City has a limited amount of time to execute the Grant Agreement with HUD and the loan agreementwith Can -American., Both agreements inVolve` only federal grant funds and involve no commitment of City funds. The UDAG loan to Can -American Realty Corporation will be repaid to the City far use in other approved community development activities Repayment of this UDAG loan is separate, and in addition to,,the' payments required for the Parcel 37 land lease i.n the Development Agreement. Under terms negotiated between HUD and Can -American prior to P.rel imi nary Grant Award, repayment of I the U,DAG loan i s scheduled to begin in the 11th year after completion of the project, with a balloon payment in the.22nd year. Interest on the loan -is to be two percent during the first ten years, increasing to three percent for the.balance of the, loan period. In addition to the. loan repayment, the City is to receive 25 percent of the defined net annual.cash flows from the project, 25 percent of the defined net proceeds if the project is sold or refinanced and,100 percent of the 'defined excess syndication.proceeds. Can -American is to invest at least $7509000 in cash equity in the project. The project roject-cost is $20,436,000. Attachments Proposed Resolution and Ordinance Grant Agreement MIAMI REVIEW Published Daily except Saturday, Sunday and Legal Holidays Miami, Dade County, Florida. CITY OF. MIAM1, STA rt OF FLORIDA DADE COUNTY, FLORIDA COUNTY OF OAbE gatore the undersigned authority personally appeared NOTICE OF PROPOSED ORDINANCE Sookla.Williams, Who on oath says that she .is the Vice . President of Legal Advertising of the Miami Review, a daily Notice is hereby given that the City Commission of the City (except Saturday, Sunday and Legal Holidays) newspaper, Miami, Florida, will consider the following ordihance(s) on second publl5hed ai Miami in 0atle County, Florida: that the attached and final,reading on January 8, 1987, commencing at 9:00 A.M, in the co of advertisem being a Legal Advertisement of Notice Miami. Florida. In the matter of advertisement, b Commission Chambers ORDINANCE NO.American Drive, Mia PY 9 9 City CITY OF MIA'fI NOTICE OF PROPOSEDOR1)INAidGT AN ORDINANCE. APPROPRIATING FEDERAL URBAN DEVELOPMENT ACTION GRANT FUNDS (UDAG) FOR USE P.O.' t 4115 AS A SUBORDINATE LOAN TO CRUZ DEVELOPMENT COM• PAN,Y AS PARTIAL,FINANCING.FOR THE CONSTRUCTION OF A 415 UNIT RENTAL HOUSING APARTMENT COMPLEX, ON PARCEL 24 OF THE PHASE I REDEVELOPMENT AREA OF THE SOUTHEAST (PARK WEST REDEVEL•. • .. , •XxX• • , ...... • ....... . ........... Court, OF THE SOUTHEAST OVERTOWN ro the .... was publish ed in said newspaper in the issues of , ORDINANCE NO. Dec . 22, 1986 AN ORDINANCE APPROPRIATING.FEDERAL URBAN DEVELOPMENT ACTION GRANT FUNDS (UDAG) FOR USE AS A SUBORDINATE LOAN TO CAN-AMERICAN REALTY' Aflfant further says that the said'!Alaml Review is a CORPORATION AS PARTIAL FINANCING FOR.THE CON newspaperlion published at VUami to said Dade County, Florida. a, STRUCTION OF A 350•UNIT RENTAL HOUSING APARTMENT anci that Mepubli newspaper has heretofore been continuously COMPLEX ON PARCEL' 37 OF THE: PHASE i REDEVELOP. OF THE SOUTH WEST published in' said Dade County, Florida, each day (except MENT AREA 'Saturday, Sunday and Legal Holidays) and has been entered as REDEVELOPMENT PROJECT. „ second class mail matter at the post office in Miami in said Dads County,. Florida, for a period of one year next preceding the fi blication of the attached cooy.of,advertisement: and Said proposed ordinance(s) may be inspected by the public airthe Mile tun or says, that she has neither paid nor promised any - Office of the City Clerk,'3500 Pan Arne rican Drive, Miami, Florida, pers n. fl or corporation'any discount.rebate, commission or'r fun for the puroose of se urmg this advertisement for Monday through, Friday, excluding holidays: between the hours Ot put ca n in the s ne 8:00 A.M. and 5:00 P.M. - f �� F All interested persons may,appear.at the meeting and be heard with respect to the proposed ordinance(s), S am to and subser aare me this Should any person desire to appeal any decision of, the City Corn _ mission with respect forany mattei to be considered at this meeting, t that person shall ensure that a,verbattm record o,t the proceedings i$ ao li y 9 19.'_.6 . A . made including all testimony and -evidence upon which any appeal may. be based. ,yam MATTY-HIRAI "JIB ei V. vre '� + v CITN' CLERK vitJC�t Flonda at Large CITY OF MIAMI, FLORIDA (SEAL) (ff4115) Cloy' aq` My Commission, expires .luly.3, 1990. Miami Logo 86•i22252tJ1 12122 M1d t7A