HomeMy WebLinkAboutR-86-1025J-86-1038
12/10/86
F
RESOLUTION
A RESOLUTION AUTHORIZING THE .USE OF THE
CIVIC CENTER SITE FOR THE DEVELOPMENT OF
LOW -DENSITY SALES HOUSING WITHIN THE
AFFORDABLE LIMITS OF LOW AND/OR MODERATE
INCOME FAMILIES; FURTHER DIRECTING THE
CITY MANAGER TO PREPARE A REQUEST FOR
PROPOSALS FOR SUCH DEVELOPMENT.
WHEREAS, there exists, in the City of Miami, a severe
shortage of homes within the affordability range of families of
low and moderate income; and
WHEREAS, the Commission of the City of Miami has determined
that the existing lack of affordable homeownership opportunities
for low and moderate income families will have a deleterious
effect on the future growth and long-range social and economic
health of the City; and
WHEREAS, the Commission of the City of Miami 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 of low and
moderate income; and
WHEREAS, the Commission of the City of Miami has determined
that the publicly owned Civic Center site is locationally suited
for development, by the private sector, of sales housing; and
WHEREAS, the Commission of the City -of Miami is desirous of
stimulating the development of low -density sales housing on the
site that are within the economic means of low and moderate
income purchasers;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI:
r
Section 1. The Civic Center site is hereby authorized for
development, by the private sector, of sales housing within the
affordability limits and purchasing power .of low and moderate
income families.
CITY COMMISSION
MEETING OF
DEC 11 1986
RESOLUTION N 8u-1" 25
REMARKS:
Section 2. The City Manager is hereby directed to prepare a
Request for Proposals from private sector developer/builders for
the construction and marketing of such housing on the Civic
Center site in accordance with the following criteria:
A) The Civic Center site will be conveyed, in fee simple,
to the successful respondent to the Request for
Proposals, as determined by the Miami City Commission.
B) The successful respondent to the Request for Proposals,
as determined by the City Commission, will be
responsible for obtaining financing for all elements of
the project proposed.
C) All housing units developed by the successful
respondent to the request for proposals must be
marketed to families whose income do not exceed 120% of
the median income for the Dade County Metropolitan
Statistical Area.
D) All housing units developed and marketed by the
successful respondent to the Request for Proposals must
be marketed in a manner to assure minorities equal
access.
PASSED AND ADOPTED thislth. day of December
1986. ,
Xavier L. Sudrez
Mayor
ATTEST
i
i
Mat y Hirai
City Clerk
PREPARED AND APPROVED BY:
Ac
ROBERT F. CLARK
Chief DeLputy City Attorney
APPROYi'D,/AS TO FORM AND CORRECTNESS:
Lucia A. Doyg
City Attorney
86. 1025)
CITY OF MIAMI. FLORIDA
INTEROFFICE MEMORANDUM
TO: Honorable Mayor and
Members of the City Commission
FROM: Cesar H. Odlo J,
City Manager1////(.
RECOMMENDATION:
DATE: DEC 51986
FILE:
SUBJECT: Reuse of Civic Center
Site
REFERENCESCity Commission Agenda
Item: December 11, 1986
ENCLOSURES:
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the use of the Civic Center site
for the development of low -density sales housing within the
affordability limits of low- and moderate -income families and
further directing the City Manager to prepare a request for
proposals for the development of such housing.
BACKGROUND:
The Housing Conservation and Development Agency recommends the
use of the Civic Center site for the development of low -density
sales housing within the affordability limits of low and moderate
income families. The proposed resolution authorizes and directs
the City Manager to prepare a request for proposals for the
development of such housing on the site.
In April of 1986, the City Commission rescinded its earlier
award of the 2.9 acre Civic Center site to the development team
composed of Related Housing, Thacker Construction, Inc.,
Marbuilt, Inc. and Consort, Ltd., as a result of the team's
nonperformance in developing affordable rental housing on the
site, in accordance with its proposal. The City Commission
directed the administration to explore alternative methods for
securing development of affordable rental housing on the site.
Notwithstanding the shortage of affordable rental housing in the
City, among Miami's greatest needs in the housing area is the
need for sales housing within the affordability range of low -and
moderate -income families with annual incomes ranging from $22,400
to $33,600. with home prices in Miami averaging $85,000, the
majority of home buyers in the homeownership market, even with
today's low home mortgage interest rates, cannot afford to
purchase a home. The costs of land, materials, and labor in the
Miami market place effectively preclude the development of single
family homes within the purchasing power and affordability range
of the City's low- and moderate -income residents by the private
housing industry.
29
86-1025
CITY OF MIAM1, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and DATE: DEC 51986 PILE:
Members of the City Commission
SUBJECT: Reuse of Civic Center
Site
FROM: Cesar H. REFERENCES
City
Odio /� City Commission Agenda
CityManager Item: December 11, 1986
ENCLOSURES:
RECTDATION:
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the use of the Civic Center site
for the development of low -density sales housing within the
affordability limits of low. and moderate -income families and
further directing the City Manager to prepare a request for
proposals for the development of such housing.
BACKGROUND:
The Housing Conservation and Development Agency recommends the
use of the Civic Center site for the development of low -density
sales housing within the affordability limits of low and moderate
income families. The proposed resolution authorizes and directs
the City Manager to prepare a request for proposals for the
development of such housing on the site.
In April of 1986, the City Commission rescinded its earlier
award of the 2.9 acre Civic Center site to the development team
composed of Related Housing, Thacker Construction, Inc.,
Marbuilt, Inc. and Consort, Ltd., as a result of the team's
nonperformance in developing affordable rental housing on the
site, in accordance with its proposal. The City Commission
directed the administration to explore alternative methods for
securing development of affordable rental housing on the site.
Notwithstanding the shortage of affordable rental housing in the
City, among Miami's greatest needs in the housing area is the
need for sales housing within the affordability range of low -and
moderate -income families with annual incomes ranging from $22,400
to $33,600. With home prices in Miami averaging $85,000, the
majority of home buyers in the homeownership market, even with
today's low home mortgage interest rates, cannot afford to
purchase a home. The costs of land, materials, and labor in the
Miami market place effectively preclude the development of single
family homes within the purchasing power and affordability range
of the City's low -and moderate -income residents by the private
housing industry.
29
86-1025
f
It is clear that a joint effort by both the public and private
sector is necessary in order to foster the development of such
housing.
The City is in a position to assist the private sector in
providing homeownership opportunities to low and moderate income
families by making the Civic Center site, capable of supporting
approximately 100 housing units, available for such a
development.
In an effort to expedite the development of housing affordable to
low and moderate income families in the City, it is recommended
that the City Commission approve the use of the Civic Center site
for development by the private sector of affordable sales housing
within the economic means of low and moderate income purchasers,
and further authorize the preparation of a request for proposals
for the development of low -density sales housing on the
aforementioned site.
SG-102 5
CODEC INC.
2929 S.W. 3rd. Ave. Suite 200 .Miami, Florida 33129 .(305) B58-9957
December 8, 1986
Mr. Cesar Odio
City Manager
City of Miami
3500 Pan American Drive
Miami, Fl 33133
Dear Mr. Odio:
Transmitted herewith for consideration and approval by city
staff and the Commission is our proposal for the development
of the "Civic Center" site as a townhouse homeownership
complex affordable to low and moderate income families.
As you are aware, this parcel was acquired with G.O. Housing
Bonds. Title to the parcel is held by Dade County.
As a non profit community development corporation, CODEC
has from its inception in 1981 a strong and serious commitment
to provide increased affordable housing opportunities in
Miami. To date, CODEC has successfully developed the El
Bosque Condominium, an 82 unit condominium located on SW.
Eighth Street, and 6 single family residences in Opa Locka
and 10 in Liberty City. Three have been closed and the
rest will close this month.
Also, St. Agustin Villas, a 100 unit project for the elderly
financed under U.S. HUD 202 program, has commenced
construction and is scheduled for occupancy in December 1988.
CODEC proposes to execute a construction management agreement
with a licensed general contractor to undertake the
construction on a bonded basis. It is anticipated that
approximately 108 units of one, two and three bedroom
residences will be built. In order to assist low income
purchasers in securing mortgage financing, CODEC intends
to apply to the Dade County Documentary Surtax Program.
In addition to the development of affordable residences,
the City of Miami will realize a substantial return of its
original investment, which in turn could be utilized to
acquire additional parcels suitable for residential
development. Also, the development will generate new
properties in the tax rolls.
86-1025
i�
A
Mr. Cesar odio
City Manager
December 8, 1986
Page Two
d immediately upon execution
CODEC is prepared to Proceeof Miami and transfer
of a development agreement
ountyith the City
of the parcel by
Sincerely,
Julio F. de Quesad
Executive Director
JFQ/mi
86-102 5
E
SUMMARY OF PERTINENT FACTS
86-102 i
CIVIC CENTER SITE
RESIDENTIAL PROJECT
SUMMARY OF PERTINENT FACTS
Developer: CODEC, Inc.
2929 SW 3 Avenue
Suite 200
Miami, Florida 33129
( 30 5 ) 858-9957
Type of Project:
Floor Plan:
Average Sales Price:
Financing Plan:
Homeownership - Town houses
Type No. Size/S.F.
1BD 1BA —18 600
2BD/1BA 66 800
3BD/2BA 24 1,000
7TO-$
Type Sales Price Price/S .Ft.
IB-D—TTBA $45,000 $75.00
2BD/1BA 50,000 62.50
3BD/2BA 55,000 55.00
Construction Schedule:
Amenities:
Construction: Conventional loan
Purchasers: Conventional and State
of Florida Housing Bond
Program/Dade County
Documentary Surtax Program
Start construction - 7/87
Occupancy - 6/88
Project: Swimming pool,
pool area pavillion
children's play
area.
Unit: Washer -dryer hookup,
Garbage disposal,
Balcony,
Semi -private unit
86--1025
Public Subsidies (a) Dade County Surtax
Program certificates
(b) Land write -down by
City
(c) Development undertaken
by non-profit
community development
corp.
Estimated Monthly Housing Expense: ,$330 (Principal.Interest.
Taxes. Insurance,
Surtax Repayt.,
Maint. Fee)
86-1025
SITE DESIGN / PLAN
86-102 i
,,..�. ,;r= . ti�
-N,
UNIT TYPE "A"
UNIT TYPE "C"
t__
0 01
d tl
9 �
t �
BEDROOM
UNIT TYPE "B"
SITE PLAN 1- = 40'-0-
PROPOSAL
TO THE
CITY OF MI AMI
FOR DEVELOPMENT ON THE
CIVIC CENTER SITE
OF FOR -SALE RESIDENTIAL UNITS
Submitted by:
CODEC, INC.
December 11, 1986
FINANCIAL PLAN
86-102 i
IMPROVED LAND:
LAND (1)
LAND IMPROVEMENTS
E2
CIVIC CENTER SITE
RESIDENTIAL PROJECT
Development Pro Forma
Cost Total Cost Cost
Sq.Ft. Unit
600,000 6.23 5,555
Streets
67,370
.70
624
Sewer & Water
240,610
2.50
2,228
Electricity
38,700
.45
358
Water Met-ers
18,000
.20
— 167
Final Plat
3,000
.03
28
Paving Eng.
21,174
.22
196
Water & Sewer Eng.
19,248
.20
178
TOTAL IMPROVEMENTS
408.102
TOTAL IMPROVED LAND
1,008,102
10.53
CONSTRUCTION COSTS:
HARD COSTS: (2)
Buildings 3,115,000
35.00
28,842
Permits
5,000
.05
46
Surveys
6,000
.06
56
Builders Risk
8,000
.08
74
Architect/Eng.
108,000
1.12
1,000
TOTAL HARD COSTS
3,342,000
36.31
SOFT COSTS:
Legal
20,000
.21
185
Taxes
2,400
.02
22
Appraisals
6,000
.06
56
Advertising & Marketing
52,000
.54
481
Accounting
10,000
.10
92
TOTAL SOFT COSTS
90,400
.93
FINANCING COSTS:
Interest on Construction 170,000' 1.77 1,574
Loan
Lender Fees 62,000 .64 574
Closing Expenses 302,400 3.14 2,800
TOTAL FINANCING COSTS 534,400 5.55
TOTAL DEVELOPMENT COST (2) $4,974,902 53.32 46,064
(1) Estimated amount. Final figure subject to negotiations. y
(2) Includes site improvements, landscaping, sideways and driveways.
(3) Note: Any single item may vary within 10% of figures sho n.
96-1025
�¢ 6
I NCOME
Unit Type
1 BD/1 BA
2 BD/1 BA
3 BD/2 BA
I
No
18
66
24
108
Sales Price
$45,000
50,000
55,000
Total
$810,000
3,300,000
1,320,000
$5,430,000
86-102 i
i
Estimated Monthly
Housing
Expenses for Homeowners
2 Bedroom
Unit
Sales Price
$50,000
pownpayment (5%)
2,500
Amount to be financed
$47,500
Amount of Surtax 2nd
` .
25,000
Mortgage —'"
Amount of 1st
$22,500
Mortgage
Monthly p rincipal & interest
$197
80
Taxes & Insurance
Surtax Minimum Payment
25
60
Asso. Maint. Fee
?
Total Monthly Payment
$362
Family Income
Required
to Support Housing Expense $17,376
Minimum
�vf
y.F ,
L
S
a� h'
ESTIMATE OF CLOSING COST INCLUDED IN THE SALES PRICE
Mortgage Processing Fee
400
3.25% Discount on lst Mort.
(1)
500
Credit Report
70
Underwriter Review
100
Abstract Search
100
Title Examination
100
Lenders Attorney's Fee
250
Title Insurance (lender,
400
owner, HUD)
Appraisal
150
Final Survey
75
Final Inspection
35
Recording Fees : (1)
Recording Deed
10
State Tax on Deed
250
Recorded 1st Mortgage
20
Intangible Tax (1st)
40
Documentary Stamp (1st)
100
Recorded 2nd Mortgage
20
Intangible Tax (2nd)
60
Documentary Stamps (2nd)
45
545
TOTAL BY SELLER $2,800
(1) These costs are a percent of the amounts of the first and
second mortgages and may vary accordingly.
8671025
i
APPENDIX
86-1025
C 0 D E C I N C.
P R O F I L E
CODEC Inc. of Miami, Florida, is a non-profit countywide
community development corporation (CDC) incorporated in
the State of Florida and is exempt from federal income
taxation under Section 501(c)(3) of the Internal Revenue
Code.
In 1981, due to the significant Hispanic population in
Dade County, CODEC was formed and funded, on a yearly basis,
through the Dade County Office of Community and Economic
Development (OCED) as an adjunct to their local community
development programs in an effort to work primarily within
the Hispanic community. It is the f irst and sole Hispanic
countywide community development corporation; therefore,
it is in fact OCED's Hispanic component. As such, CODEC
is sponsored by the Cuban National Planning Council, Inc.
(CNPC), which is the first and oldest (ten years) Hispanic
multifunded organization in Dade County. CNPC provides
a combined set of social and community services to Hispanics
in Dade County.
CODEC's primary services are provided to specific development
projects only. Within this role, it has a history of
cooperation with other CDC's and community based
organizations (CBO's) in the area by promoting businesses
and economic development through the sharing of its expertise
in management, finance and other activities.
Among its programmatic objectives, housing and commercial
development are the main activities.
CODEC has in-house capability in construction, financial
analysis and project management. CODEC's staff includes
of an Architect, a Business Analyst and a State licensed
General Contractor, all with extensive track records, and
the supporting logistic and clerical staff.
CODEC has a long-term strategic development plan for its
organizational growth and the resulting services' to the
community. Included within CODEC's corporate structure,
two key components are: a) Miami -Dade Business Development
Corporation , a Small Business Administration Section 503
certified development company to.finance long-term fixed
assets for small businesses in Dade County, and b) a
subsidiary construction company, American -Atlantic
Construction Inc., a certified minority construction company.
86-'1025
:4
CODEC is involved in a number of long-term projects such
as the development of a truck stop complex which will create
at least 200 direct permanent jobs, plus temporary employment
during construction.
In housing, CODEC is certified by Dade County Department
of Urban Development (DC HUD) and OCED to participate in
the Dade County Surtax Program. CODEC has been awarded
two Section 202 HUD awards for the construction of 220
units of elderly housing in the City of Miami and Dade
County, through its subsidiaries Peninsula Housing
Development Inc., II and III' totalling $11 Million In
addition, CODEC was awarded a planning grant to develop
limited -equity cooperative housing project in the Little
Havana section of Miami, and is actively participating
in a local program providing subsidized second mortgages
through the Surtax Program, for low and medium income people
for 82 units in Little Havana and 16 homes in Opa Locka,
Liberty City and Model City.
CODEC has also been designated by OCED as the lead
redevelopment agency in the Melrose and Leisure City
communities of Dade County. As a first step, CODEC completed
the "Melrose Market Study", known as the Carras Report.
An application for a Revolving Loan Fund to complement
the 11503" certified development company for equity and
working capital is being processed by the U.S. Economic
Development Administration.
In Fiscal Year 1984 CODEC had a leverage ratio of $23.
In current Fiscal Year 1986 our leverage ratio for the
first 5 months is $22.
In the present FY 1986 CODEC is funded for administrative
purposes by the Dade County Office of Community and Economic
Development (OCED) in the amount of $248,750. This gives
us the logistic support and staffing to undertake and manage
our projects.
8G-1025
war_
LEVERAGE (FY 86)
HOUSING
St. Agustin
$ 4,933,100
Saga Bay
6,207,400
E1 Bosque
3,533,400
Brennan/CODEC
872,000
Sub Total
$15,545,900
Leverage
217:1
ECONOMIC DEVELOPMENT
Pan -Am 994,555
James D. Nall 1,190,000
Manufact. Warehouse 380,000
Isabelle 1,225.000
Sub Total $3,789,555
Leverage 53:1
Total -
Total Leverage
if
'$15,545,900
$ 3,789,555
$19,335,455
72:1.
SEA-102 5