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Home My WebLink AboutR-85-0947J=B5�895 RESOLUTION NO. A RESOLUTION AMENDING RESOLUTION NO. 85-836, EXPRESSING THE INTENT OF THE CITY OF MIAMI TO Po)CEED WITH THE DEVELOPMENT OF A MULTIFAMILY RENTAL HOUSING PROJECT AND THE FINANCING OF 91 UNITS THEREOF THROUGH THE ISSUANCE OF MULTIFAMILY MORTGAGE REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $6 MILLION FOR THE BENEFIT OF CIRCA/BARNESS/SAWYER, (A JOINT VENTURE ESTABLISHED FOR THIS PURPOSE), BY INCREASING THE MAXIMUM SIZE OF THE MULTIFAMILY MORTGAGE REVENUE BONDS BY $2,000,000 FOR THE DEVELOPMENT AND FINANCING OF SAID PROJECT TO ALLOW FOR AN ISSUANCE IN AN AMOUNT NOT EXCEED $8,000,000. WHEREAS, by Resolution 85-836, adopted July 25, 1985, the City Commission expressed its intention to approve at a later date by appropriate resolution and upon compliance of Circa/Qarness/Sawyer (the "Developer") with the City's prescribed procedures for the issuance of multifamily mortgage revenue r. bonds, the financing of a 91 unit multifamily rental housing "Project") project (the by the developer through the issuance of i multifamily mortgage revenue bonds (the "Bonds") in an amount not Al to exceed $6,000,000, and the execution of certain necessary i accompanying documents, under certain regulations, stipulations z55r: t and conditions; WHEREAS, the Developer has supplied satisfactory evidence in the form of development pro formas, construction cost estimates and financing plans showing a need for increasing the maximum financing requirement to allow for an issuance of Bonds in an amount not to exceed $8.000,0 00, which wilt allow for the financing of the Project, including parking and recreation components; NECTINQ or $IF a Aw. NOW THEREFORE, 8t 11 'RESOLVED RY THE COW01I55IONJ bF THE CITY OP MIAMI, FLORIDA: Section 1. Sections 1 and 4 of Resolution No. 85-8369 adopted July 260 1985s which expressed the intent of the City to proceed with the development of a multifamily rental housing unit and the financing of 91 units thereof through the issuance of multifamily mortgage revenue bonds are hereby amended in the following particulars. 1 "Section 1. Al I findings and recitais contained in the Preamble to this resolution are adopted by reference and are incorporated herein as if fully set forth in this section -except that the currently estimated amount of bonds which �the� City intends to issue for the benefit of the Developer is an amount not to exceed $8,000,000, reflecting an increase of $2,000,000 from an amount not in excess of $6,000,000 the estimated amount as of July 25, 1985". k * k "Section 4. The inducement period for the Project shall have a term of six (6) months from the date of September 12, 1985 (the "Inducement Period"). The Inducement Period is subject to extension by the City Commission upon compliance by the Developer of certain requirements establi shed by the Commission, including the payment of an additional fee to the Commission and bond counsel at the termination of the Inducement Period". 1 Words and/or figures atriciwa through shall be deleted. Underscored words and/or f i,oucoa ahaUl 1 ire ad&4. Mx4iuing provisions arm new in effort and remain unchanged. Asterisk* indicate + fttod and unchaased nateri st. .2. F PASSED AND ADOPTED THIS , DAY nF Aj►& j+ 1§89, lATT i HIRAIaa+ . CI Y CLERK "= PREPARED AND APPROVED BY: lv ASSISTANT CITY ATTORNEY MauriSe At 40 R APPROVED AS TO FORM AND CORRECTNE7 LU41M Mt VWV !! CITY ATTORN Y- ;3- Gt" OF MIAMI. FtORtbA iNUR4FRICK MCMCRANDUM -� The Honorable Mayor and Members DAM SEP 0 $ 19$5 ftt of thn City Commission suldtV Inducement Resolution Parcel 56 Rental Housing Project City Commission Meeting Sergio Pereira September 12, 1985 City ManagerNG�.osWnr:s: It is recommended that the City Commission approve the attached resolution, amending a previous resolution ax:oressi.n,a-the__ _intent of the City of Miami to oroc_e-ed With the degT a mu ti fam, ly ren AI 1'_1ousl d e,- Al_ and the finanoc ng units thereof through the issuance of multifamily mortgage revenue bonds in an amount not to exceed $6 million for the benefit of Circa/garness/Sawyer, by increasing the maximum sf.xe of the multifamily mortgage revenue bonds for the development of said project by $2,000,000 to allow for an issuance in an amount not to exceed $8,000,000. At its July 25t 1985 meeting the City Commission adopted Resolu- tion No. 85-836 providing an inducement for the issuance of mortgage revenue bonds for the 91-unit rental housing component selected for the the development of Parcel 56 of Phase I of the Southeast Overtown/Park West Redevelopment Project. More detailed financial planning by Circa now shows a need for up to $8,000,000 in multifamily mortgage revenue bonds for the development of Parcel 56. The bonds will be used to finance the 91-unit rental housing portion as well as the structured parking and the common recreation areas. Earlier in the project planning it was thought that the mortgage revenue bonds could not finance the parking and recreastion areas. However, later research of current tax laws has shown that the parking and reareaition areas can be included, since these elements are functionally supportive amenities to the rental housing units. City Bond Counsel (Brown, Wood Ivey, Mitchell A Petty has independently indicated to the City that current tax law allows this type of arrangement. A copy fo their response is attached). This parcel is to be developed by Circa/Barness/Sawyer, and is included as a component of the Urban Development Action Grant Appliestion (UbAG) now under review by the U.S. Department of Housing and Urban Development. In addition to the rental units, this parcel includes the devslopment of 50 condominium units and 60,000 square feet of commercial space. The City has requested a $2,277,400 subsidy for Parcel 56 (14.9 percent of the estimated $15.24 million private development cost) in order to make the development program more economically feasible. 85'09VA( - 9 BROWN, WCO0, IVEY) MITCMELL & PETTY ONt W040 tMAC t UNTtO. New Yeapt, M.Y. 160AS ?.. iiiit )t6. c► ..0. •e.rr.6.t..) �)e a)ei 'tcttar�tA ♦�) SO+ iit *10 tAl 61PECt putooto Mr. Robert B. Olson City of Miami Overtown/Park west Project P.O. Sox 330708 Miami, Florida 33233-0708 Dear Sobs 2ta•8141.530 i `tLti kill!& Ciittibbit)):ii6w6bbLlw tt►ttbrotk•. tit 630.))60 August 26, 1983 Re: Southeast Overtown/Park west Redevelopment Pro ect Oa r.i.av* Sbut.t 40011 »Ay0r1106. a Z. t@606 `t.t►pawn rbt !ii lib6 •tLtt5►1ti tbt ))) titlf In connection with the financing of the Southeast Over - town Project, you have asked our advice regarding the require- ments concerning mixed -use facilities involving multi -family housing. Pursuant to changes in the tax law incorporated by the Tax Reform Act of 1984, facilities may qualify as residential rental property under the Internal Revenue Code of 1954, as amended (the "Code"), even though part of the facility is used as commercial space. However, in such case, only the portion actually used for residential rental purposes would qualify under the Code as an exempt facility. Additionally, in determining the cost of facilities financeable as an exempt multifamily housing facility, the cost of property benefiting more than one use, such as foundations and other common elements, must be allocated among such uses. Also, in financing a multifamily housing project under the Code, such financing may include the cost of facilities that are functionally related and subordinate to residential rental projects, such as parking areas for use by the tenants. In the event that the parking areas area intended also to service commercial space, an appropriate allocation of cost would be required. Please feel free to call me if I can be of any further assistance. very1rely yours A'�-44& Michael A. Vaccari V