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Home My WebLink AboutR-85-1240J-85-1205 06, 4 f RESOLUTION NO. Sv "1,y i1() A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF MIAMI (FLORIDA) TO PROCEED WITH THE DEVELOPMENT OF A MULTIFAMILY RENTAL HOUSING PROJECT AND THE FINANCING OF 415 UNITS THEREOF THROUGH THE ISSUANCE OF MULTIFAMILY MORTGAGE REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $24,000,000 FOR THE BENEFIT OF A FLORIDA LIMITED PARTNERSHIP TO BE FORMED FOR THIS PURPOSE, WITH CRUZ DEVELOPMENT COMPANY ACTING AS GENERAL PARTNER. WHEREAS, the City Commission has determined that. there exists a shortage of safe and sanitary housing for persons and families of low and moderate income within the City; and i WHEREAS, such shortage will be partially alleviated by the construct.ion and operation by a private developer of a low -to - f moderate income housing project to consist of approximately 415 units, located at N.W. 9t.h Street through N.W. loth Street. { between North Miami Avenue and NW 1 Avenue in the City of Miami, ' Dade County, Florida, to be occupied by persons of low -and moderate -income (the "Project"), which Project is part. of the - Overtown/Park West Redevelopment Area, to be owned by a Florida Limited Partnership to be formed for this purpose wherein Cruz f` Development Company will be the General Partner (the N' "Developer"); and k WHEREAS, in order to provide financing for the acquisition, construction, and operation of the Project, the City intends to + issue its multifamily mortgage revenue bonds for the benefit. of the Developer in an amount. currently estimated not to exceed �r $24, 000, 000 (the "Bonds") and to execute into a Loan or Financing Agreement, a Trust Indenture, a Regulatory Agreement. as to Tax Exemption and other necessary documents with respect to the Y sY' Project; CITY COMMISSION MEETING OF DEC 19 1995 IREsa�unoN r�o8�""1 i REMARKS. NOW ,THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: L .. Section 1. All findings and recitals contained in the Preamble to this resolution are adopted by reference and are incorporated herein as if fully set forth in this section. Section 2. The City Commission hereby expresses its t intention to approve at a later date, by appropriate resolution, and upon compliance by the Developer with the City's prescribed procedures for issuance of multifamily revenue bonds, the financing of the development. of the 415 Unit Project. (the "Project") by the Developer through the issuance of its Bonds and the execution of the necessary documents, including a Trust. Indenture, Loan or Financing Agreement. and a Regulatory Agreement - as to Tax Exemption; provided, however, such Bonds shall not be jissued unless the Bonds, if publicly offered, are rated at least. i "A" or better by either Standard & Poor's Corporation or Moody's ' Investors Service, Inc. or both, if both rate the Bonds; or, alternatively, the Bonds, if not. rated, are sold by private 1 placement to institutional investors and provided, however, such ri + i bonds that are not required by the developer shall not be s utilized by the City for any other project without the specific approval of the City Commission; Section 3. This Resolution shall constitute "official ' action" of the City Commission toward the issuance of the Bonds, m within the meaningof the regulations issued b the Internal 9 Y 'i Revenue Service pursuant. to Section 103 of the Internal Revenue ar .a Code of 1954, as amended. Section 4. The inducement period for the Project shall have a term of six (6) months from the date of adoption of this Resolution (the "Inducement. Period"). The Inducement. Period is subject to extension by the City Commission upon compliance by the Developer of certain requirements established by the Commission, including the payment. of an additional fee to the Commission and bond counsel at the termination of the Inducement ' Period. 8v "1 240 Section 5. The financing for the Project will be closed subject to validation of multifamily mart -gage revenue bonds by the Circuit Court of Dade County, Florida. The City Commission makes no representations or guarantees as to the scheduling or outcome of validation proceedings in the Circuit Court. of Dade County, Florida nor is the City compelled to file for validation of bonds for any particular multifamily project. The various projects induced by the official action of the City Commission shall be closed on a first -come, first. -served basis. Section 6. All resolutions and orders or parts thereof, of t-.he City Commission in conflict herewith are, to the extent of such conflict, hereby modified to the extentof such conflict, and this Resolution shall take effect from and after its passage, the public welfare requiring it. Section 7. It is found and determined that all formal actions of this Commission and of its committees concerning and relating to the adoption of this Resolution were taken in an open meeting, open to the public, in full compliance with all legal requirements. PASSED AND ADOPTED THIS 19th DAY OF December , 1985. ATTEST: TY HIRAI CITY CLERK PREPARED AND APPROVED BY: ROBERT N. SECHEN ASSISTANT CITY ATTORNEY 4��. XAVIER L. SUAREZ, MAYOR APPROVED AS TO FORM AND CORRECTNESS: LUCIA A. DO G CITY ATTO EY WS -1240 '0" - -ES- 1_2-L>; CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUMc-- 1 TO Honorable Mayor and DATE ► 1985 F,LE Members of the City Commission SUBJECT Inducement. Resolution Parcel 24 Rental Cesar H. Odio Housing Project City FRO"" City Manager REFERENCES Commission Meeting December 19, 1985 ENCLOSURES: It is recommended that the City Commission approve the attached resolution expressing the intent of the City of Miami (Florida) to proceed with the development of a multifamily rental housing project within the Southeast Overtown/Park West Project area and the financing of 415 units thereof through the issuance of multifamily mortgage revenue bonds in an amount not to exceed $24,000,000 for the benefit of a Florida limited partnership to be formed for this purpose, with Cruz Development Company acting as General Partner. Cruz Development Company has been selected for the development of a 415-unit rent_dl housing project on Parcel 24 of Phase I of the Southeast Overtown/Park West Redevelopment Project. The estimated total private development cost for this project, provided by Cruz Development Company, is $32,480,109. This amount_ includes the residential units, 20,000 square feet. of commercial space and approximately 500 parking spaces. This project commitment is part of the City's amended Urban Development Action Grant (UDAG) Application for Phase I development, which was submitted to HUD on July 31, 1985 for the final UDAG funding round of FY 1985 and is being held over for consideration in the first UDAG funding round of FY 1986. (Cruz has withdrawn their condominium development proposed for Parcel 36, which did not receive a firm financing commitment, from UDAG consideration at this time.) Cruz has supplied the City with development and operating pro formas for Parcel 24 showing complete sources and uses of funds, including the mortgage revenue bond involvement. This information is attached. participate in this ance costs. 8v:-1240 Cal Xy. im so CRUZ UDAG — CITY OF MIA.II PAGE 42 ATTACHMENT Telephone (61�) 296 Sb<0 Johh S. Cwt COealtuttioh Co.. ihe. - 10 Fairway Street Mauapan. Mau. 0712E OVERTOWN/PARKWEST { BLOCK 24 DEVELOPMENT PRO -FORMA - 415 UNITS RENTAL Hard Construction Costs $ 20,860,474 Soft Construction Costs: general requirements 1,460,233 Overhead 1,562,450 bond 238,832 city permits, fees, clerk, etc. 360,636 TOTAL SODT CONSTRUCTION $ 3,622,151 Subtotal TOTAL CONSTRUCTION COSTS $ 24*484,625 Professional Fees: architectural, inspection, engineeril,g & survey $ 11074,743 ` legal and title and organization 114,595 other fees 6,000 accounting/audit 8,000 HUD fees 380,025 financing fee: 584,644 TOTAL PROFESSIONAL FEES $ 2,168,007 Other Development Costs: payments to the city 289,500 insurance 127,890 operating expenses during construction management planning/tenant selection " " "--535,400 financing cost interest 1,973,174 TOTAL OTHER COSTS $ 21925,964 SUB TOTAL $ 29,576,590 ! BUILDERS AND SPONSOR PROFIT AND RISK $ 21903,519 TOTAL DEVELOPMENT COSTS $ 32,480,109 UDAG LOAN ($ 6,225,000) EQUITY ($ 3,248,009) FIRST MORTGAGE 23,007,100 3RD MORTGAGE/DEBT SERVICE RESERVE 2,000,061 DADE COUN-rY SURTAX PROGRAM 85-1240 RENTAL SCHEDULE NUN -ELEVATOR: 2 OBR's (Low -Mod) 14 OBR's (Market) 6 1BR's (Low -Mod) 32 1BR's (Market) 3 2BR's (Low -Mod) 18 2BR's (Market) 2 3BR's (Low-Mdd) 8 3BR's (Market) ELEVATOR: 5 OBR's (loe-Nod) 30 OBR's (Market) 20 1BR' s (Low -Mod) 115 1BR's (Market) 21 2BR's (Low -Mod) 120 2BR's (Market) 3 3BR's (ire -Mod) 16 3BR's (Market) 415 GROSS POTENTIAL RESI- DENTAL UDAG - CITY OF MIAMI PAGE 43 UNIT RENT TOTAL MO. REND TOT. $ 336 $ 672 $ 8,074 510 71140 85,658 373 2,238 26,871 652 20,864 250,289 447 1,341 168085 741 13,338 160,089 530 LOW 12,716 1,129 9,032 108,391 $ 336 510 373 652 447 741 530 $1,129 $ 1,680 15,300 7,460 74,980 9,387 88,920 1,590 18,064 $273,066 $ 20,185 183,553 89,569 899,475 112,592 1,067,259 19,074 216.782 $3,276,663 8 -1240 V ...rsn2lfAe+FAEhI.+�a�vx-W:,SNM"M:.:sY. :YM.iMs..:LLr.z^wagae.Mw!Y1 -.. --.:._ ....s.....r�.,. ....,..,. w..._.....w.s..u..nr.rr..+..�+..,_�.a...s....__......�......_..+�_.....r.--_.�._.�........u�..-...�.._a _._ .. _-....-.,J....-.r... � .-.... .. ...m WITH U.D.A.G. 21-Now-W. SECOND MORTGAGE OPERATING PRO-MX"A OVE71Tmm/PAR1.l.Tfl-11.0CF 24 . InIMING FITS 415 NTT RE\TABLE COWnC1AL SQ_FT. 20,000 C0t'I �i:' YUJ.11•C Si a�15 435 YEAR I IW 1 VFAR 2 YEAk 3 YEAR 4 YEAR 5 TW 6 1E4F. 7 YEAR F YEAR 9 YE Ak 10 ---------- ----------- --------•-- ----- "'--- ----------- Mu.km-1 ANN'LAL R1M AMP. AL VMC ANNNAL RE77I AWLAL RENT ANT:JAL REK, ANNUAL REMT ANNUAL NEVI ANNUAL RENT ANNUAL RENT AMA1Ai. RE1:1 NO\-ELE%A'Gn: 2 OFFS (LOW -MOD-) $336 $6,071. 38.478 S6,901 59,435 $10.002 $10.60. S11,238 $11,912 312,627 513,3b4 I. 06f'S (Kkkm ) IN10 f85.65F S84,941 194.436 SI00,105 5106.111 3112.477 $119,226 5126.380 S133.962 S142,000 ( 11F'S �U*I-MO::.1 W.) 526,671 328,214 129,625 131,40I 531,287 S15,264 $37,601 539.645 34Z,024 14404_. J2 IPP'S (MAAAX.-I 1652 S210.20 $262.803 S275.043 3292,500 9310.050 S126,653 3340,372 S369.274 5391,431 S414,917 3 21P'S (LDW-MOD.) S.47 f16,085 S16.S89 517,733 118,797 S19,925 321,121 S22,368 $23,731 S25,155 126.66++ 16 2bl:•S (MAkrnI 5741 $160.029 .3168,093 S176,498 S187,088 S190.313 3210,I12 $222.82: f236,ia4 $250,366 S26S,388 2 3BF.'S (LO4-MOB.) S530 $12.716 $13.352 514,020 SI4,861 S1S.753 S16,696 $17,700 $18,762 119,887 $21,08G 6 31R'5 (MAPX=) 51.120 Sloe.391 S1131811 $119,501 $116.671 $134.272 L41.326 SISO,M6 $159.920 5169,515 5179,606 UXVA?UR: 5 OBP'S (1174-MOD. ) $336 3C OW S (MAP"T1 S530 2C IBP.'S (IA6-MGJ.) S373 5 i9L'S (MAR)ME-1) SE52 21 21R'S (L04-M011.) S4.7 120 2PF'S (MLNXII S7.) 3 3BP.'S (L0u-40U.) S530 It 31F'S (W"T) S1.129 ------------ GP.CSS PC'I'EhilAL FMIDE2.:IAL *=:S:YACAN:Y 0s%.101,5i... ) G7TC:Il7 RLSIDOCIAL I-VAM CRCSS Ccftbg3'.CIAL INC. S:0 Y/SQ.FT IFSe. VACANCY: (151.IOy.S�...) EFF-r :IVE CO 90RCLAL IWCOME T^'_A: UFELTIVE INOOPU LESS EXTENSU Tr7A: 0MIA IAG EVOMLS S2,860 P/du• (II.'(EASING i 2% ►/AW)UM) Nrl OFEIiATING INOOML BASE PAV4MS TO CITY AIM AL DO? SOVICL S23,007a101) ist." ATT PROF?T (LOSS) FROM OPEWIONS A.YI.REQD.FOR 110% DO? SERVICE COVERAGE CUM OF RLQUIM AMOUNTS LEV S13i':ICE R7SEP%l F0.1) 12.000,061 STARTIMG BALANCE f20,1B5 $21.194 122,253 S23.589 $25,00% $26,504 f28,095 529,780 f31,567 $33,461 S183,553 3192.731 3202.368 $214.510 S227,380 $241.023 5255.WS S270,814 S287,062 2304.286 569.569 194.040 S98,150 $106,675 S110.955 $217,613 5124,669 $132,150 $140,079 9148,483 5899.475 $944,449 5991,671 S1,051.172 31.114.21.2 21.221.096 21.251.962 $1.327,000 $1,406,705 S1,491.107 51.12.592 $118.222 S124,133 S111.581 1139,476 S147.844 f156.115 sl".118 5116.00 f186.650 S1,067.259 S1.1Z0,622 S1,176,654 21.247,253 $1.32I.088 f1,401,413 $1,485.490 S1.576,628 Sl,b9,106 $1.769,252 S19,076 Z20,028 S21.030 $22,291 $23.629 S25.047 S26,549 $25,18.2 $29,831 231.621 S216.782 1227,621 $339.003 S253,343 1268.543 S284,656 5301,735 f319,830 $319,010 2359.371 S3,276,663 13,640,496 23.612.521 S3.829,272 S4,059,029 24.302,570 $6,560.715 S4.834,368 S5,124,430 $S,431,89! (1491.449) (S3.4,050) (1160,626) (5191.464) (520:,?51) (S215,129) ($228,036) (524I,710) (5256.222) (1271.595) ---------- ---------- "^'----- ---"'---- ---------- -------------------- ---».___- -------•------------ SZ.785,164 $3,096,447 3a,431,895 S3,637,809 S3,S]C.077 S4,Oe7,.42 f:,332.618 S4,592.650 S4.S68,209 S5.160.301 1400.000 S426,000 S441.006 S463.050 146e,203 SS10,S U S536.036 f56.840 3590,91_ S6?0,571 ($60,000) (542.000) (522,050) (123.153) (124,310) ($25,526) (126,802) (SI8.142) (929,549) (111,027) ---------- --------•- ---------- ---------- ---------- ---------- ---------- --"'----- -"'---_-- 5340,000 S378.000 5418,950 S439.898 S461,89i f4".981 $509.236 $536,690 1561.633 5559,505 ---------- ---------- ----""-- ---------- ---------- ---__-»»---------- ---------- 13,125,164 S3,474,.:7 S],550,845 14.077,706 54,117.970 S4.572,429 S4.841,925 55,127,348 55,424,642 S5,749,506 (II.142,000)(91.164,040)($1,188,137)(11.211.900)($1,236,138)(81,260,460)(31.306.077)(51,311,799)(81,338,035)(11,364,796) ---------- ------•--- .......... ---------- ---------- -------------------- ---------- ---------- S1,963.164 62,309,601 S2,641.7•• $2,865.807 S3,061,832 S3,311.569 $3,555,547 23,815,549 84.091.607 24.385,020 S50.000 S50,000 150.00(p S50.000 $50,000 $91,469 f96.838 S102.547 $108,593 SI14,996 S2,641,21S S2.641,215 S2.K1.21S S2,641.215 $2.641.21S $2.641.215 12,641.215 $2.61-1.225 S2.643,215 S2,641,215 .......... .......... .;;"***.. .......... ..........-....... ......-, .......... (1708.051) (S3S1,60S) (f28.507) f114,592 f190.617 5378.005 S817,794 11.071,787 S1,341,799' 11,626,799 S972.173 9645.730 2292,626 180,530 (S126,496) (1314,783) (1553,672)(f807a665)(21,077.677)(11.364.678) S2,617,903 51,910,511 32,000,061 61,873.565 31,515,78. $1,005,110 1197,444 (i6b0,2]]►(f2,244,910) S2,000,061 $1.116,267 3529,240 3263,215 1161,624- 5296.820 S5S2,986 51.086,325 $1,820.566 52.800.27*, avj C) a m Q :S r I f CItY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO Sergio Pereira DATE November 27, 1985 FILE City Manager SUBJECT City Commission Agenda December 19, 1985 FROM Matthew Schwartz, Director REFERENCES Southeast Overtown/Park West Redevelopment Project ENCLOSURES: It. is requested that the following items be placed on the December 19, 1985 Commission Agenda for the Southeast Overtown/Park West Redevelopment Project: I. A resolution expressing the intent of the City to proceed with development of a multi -family rental dousing project. and the financing of the 415 units through the issuance of multi -family mortgage revenue bonds in an amount not to exceed $24, 000, 000. 2. An emergency ordinance providing for the issuance of special construction revenue notes to fund the construction of for -sale housing, as part of Phase I Redevelopment. 3. A resolution accepting the recommendation of the City Manager for the selection of Hank Meyer Associates, Inc. Bob Simms Associates, Inc., for public relations/ marketing services for the Southeast Overtown/Park West Redevelopment Project Phase I. DEC 0 4 S-1240