HomeMy WebLinkAboutR-86-1035J-86-1052 '
12/2/86
RESOLUTION NO. 86-- 103 i
A RESOLUTION AUTHORIZING THE
CITY MANAGER TO EXECUTE ON
BEHALF OF THE CITY A GRANT
AGREEMENT, IN A FORM ACCEPTABLE
TO THE CITY ATTORNEY, WITH THE
UNITED STATES DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT
(HUD) FOR AN URBAN DEVELOPMENT
ACTION GRANT (UDAG) WHICH WILL
PROVIDE $5,643,000 TO THE CITY
OF MIAMI TO BE USED AS A
SUBORDINATE LOAN TO CRUZ
DEVELOPMENT COMPANY FOR THE
CONSTRUCTION OF A 415-UNIT
RENTAL HOUSING APARTMENT
COMPLEX ON PARCEL 24 OF THE
PHASE I REDEVELOPMENT AREA OF
THE SOUTHEAST OVERTOWN/PARK
WEST COMMUNITY REDEVELOPMENT
PROJECT, AND FURTHER
AUTHORIZING THE CITY MANAGER TO
ACCEPT THE UDAG AND EXECUTE A
LOAN AGREEMENT WITH CRUZ
DEVELOPMENT COMPANY BASED UPON
THE TERMS OF THE GRANT
AGREEMENT BETWEEN THE CITY AND
HUD.
WHEREAS, the City Commission authorized, 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
Cruz Development Company on Parcel 24 of the Phase I
Redevelopment Area of the Southeast Overtown/Park West Community
Redevelopment Project; and
WHEREAS, a Preliminary UDAG Grant Award in the amount of
$5,643,000 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 RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to execute
on behalf of the City a Grant Agreement, in a form acceptable to
the City Attorney, with the United States Department of Housing
CITY COMMISSION
MEETING OF
DECpp11 1966
RESOLUTION NSG71035
dLVAf;KS:
and Urban Development for an Urban Development Action Grant
(UDAG) in the amount of $5,643,OOO, to provide for a subordinate
loan in like amount for the construction of a 415-unit rental
apartment housing complex (the Project), to be developed by Cruz
Development Company (the Developer).
Section 2. The City Manager, as chief administrative
officer of the City of Miami, is hereby authorized to accept the
UDAG and to execute an Agreement with the Developer based on the
terms of said Grant Agreement.
PASSED AND ADOPTED thisllth.day ofDecember,1986•
ATTEST:
-
AT-1Y HIRAI,
CITY CLEW
PREPARED AND APPROVED BY:
x�wa-'a J-' &ete
IM-BERT F. CLARK &
CHIEF DEPUTY CITY ATTORNEY
APPROVED AV TW FORM AND CORRECTNESS:
86-1035
1WZ
01
CITY OF MIAMI. FLORIDA
INTEROFFICE ME` CRANDUM 45_
Honorable Mayor and Members =Arr- DEC 519% __
of the City Commission
UDAG (II) Grant Agreement
Southeast Overtown/Park West
FF�'d RE=ERENCES
Cesar H. Odio 410
December 11, 1986 Commission
City Manager EN%:L.',_„IEAgenda
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the
attached Ordinance and Resolution, appropriating the sum of
$5,643,000, and authorizing the City Manager to execute on behalf of
the City a Grant Agreement, in a form acceptable to the City
Attorney, with the United States Department of Housing (HUD) for an
Urban Development Action Grant (UDAG), which will provide $5,643,000
to the City of Miami to be used as a subordinate loan to Cruz
Development Company for the construction of a 415-unit rental
apartment complex on Parcel 24 of the Phase I Redevelopment Area of
the Southeast Overtown/Park West Community Redevelopment Project,
and authorizing the City Manager to accept the UDAG and execute a
loan agreement with Cruz Development Company 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 copy of which is
attached, and recommends execution of this agreement in a form
acceptable to the City Attorney.
Execution of the UDAG(II) Grant Agreement between the City and HUD,
acceptance of the UDAG from HUD, and execution of an agreement to
loan the UDAG funds to Cruz Construction Company in accordance with
the Grant Agreement are all necessary steps to allow construction to
commence on Parcel 24 of the Phase I Redevelopment Area of the
Southeast Overtown/Park West Community Redevelopment Project in
accordance with the Development Agreement, is scheduled for
Commission authorization at a later date.
86-1QI30
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 agreement
with Cruz Development Company. Both agreements involve only
federal grant funds and involve no commitment of City funds. The
UDAG loan to Cruz Development Company will be repaid to the City
for use in other approved community development activities.
Repayment of this UDAG loan is separate, and in addition to, the
payments required for the Parcel 24 land lease in the Development
Agreement.
Under terms negotiated between HUD and Cruz Development Company
prior to Preliminary Grant Award, repayment of the UDAG loan is
scheduled to begin in the 11th year after completion of the
project. 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 15 percent of the defined net annual cash flows from
the project, 10 percent of the defined i
project is sold or refinanced and 30 peri
excess syndication proceeds. Cruz Develol
invest at least $2,007,757 in cash equity i
total project cost is $30,650,757.
Attachments
Proposed Resolution and Ordinance
Grant Agreement