HomeMy WebLinkAboutR-86-1036J-86-1026
12/2/86
RESOLUTION N0. S6-'1036
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 $4,500,000 TO THE CITY
OF MIAMI TO BE USED AS A
SUBORDINATE LOAN TO CAN-
AMERICAN REALTY CORPORATION 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
WEST COMMUNITY REDEVELOPMENT
PROJECT, AND FURTHER
AUTHORIZING THE CITY MANAGER TO
ACCEPT THE UDAG AND EXECUTE A
LOAN AGREEMENT WITH CAN-
AMERICAN REALTY CORPORATION
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
Can-Amercian Realty Corporation on Parcel 37 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
$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 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
Cpff COMMISSION
MEETING OF
DEC 11 199b
RESOLUTION No.86 - 1.036
REMARKS:
and Urban Development for an Urban Development Action Grant
(UDAG) in the amount of $4,500,000, to provide for a subordinate
loan in like amount for the construction of a 350-unit rental
apartment housing complex (the Project), to be developed by Can -
American Realty Corporation (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 of December 1986•
ATTEST:
PREPARED AND APPROVED BY:
&. i T.
CHIEF DEPUTY CITY ATTORNEY
APPRO M AS TO FORM AND CORRECTNESS:
. Y V V V 15"L. n 1 t,
IWO
86--iC ^ `b
CITY OF MIAMt, FLORIDA ��
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members
of the City Commission
FRCM /
Cesar H. Odi o '1A
City Manager
RECOMMENDATION:
r-aT= DEC 519H
SU 3 7 UDAG ( I ) Grant Agreement
Southeast Overtown/Park West
REFERENCES
December 11, 1986 Commission
ENCIASURESAgenda
It is respectfully recommended that the City Commission 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, with the United States Department of Housing (HUD) for an
Urban Development Action Grant (UDAG), which will provide $4,500,000
to the City of Miami to be used as a subordinate loan to Can -
American Realty Corporation for the construction of a 350-unit
rental apartment complex on Parcel 37 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 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 copy of 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 37 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.
86-10,63G
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 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 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 31 land lease in the Development
Agreement.
Under terms negotiated between HUD and Can -American prior to
Preliminary Grant Award, repayment of the UDAG loan is 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 $750,000 iR cash equity in the project. The
total project cost is $20,436,000.
Attachments
Proposed Resolution and Ordinance
Grant Agreement
SG-103(>