HomeMy WebLinkAboutPre-LegislationCity of Miami
Resolution R-19-0502
Legislation
File Number: 6501
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
Final Action Date: 12/12/2019
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE
AGREEMENTS, INCLUDING BUT NOT LIMITED TO LEASES, PURCHASE
AND SALE AGREEMENTS, AND/OR MANAGEMENT AGREEMENTS, ALL IN
FORMS ACCEPTABLE TO THE CITY ATTORNEY AND BOND COUNSEL,
WITH BHP COMMUNITY LAND TRUST, INC. D/B/A SOUTH FLORIDA
COMMUNITY LAND TRUST, A STATE OF FLORIDA NOT FOR PROFIT
CORPORATION ("SFCLT"), FOR THE DEVELOPMENT OF CERTAIN CITY OF
MIAMI ("CITY") OWNED PARCELS OF LAND LOCATED APPROXIMATELY AT
6200 NORTHWEST 17TH AVENUE AND 6201 NORTHWEST 17TH AVENUE,
MIAMI, FLORIDA, AS LEGALLY DESCRIBED IN EXHIBIT "A," ATTACHED AND
INCORPORATED ("PROPERTIES'), AS AFFORDABLE/WORKFORCE
RENTAL AND HOMEOWNERSHIP HOUSING, INCLUDING THE SALE OR
LEASE OF SUCH PARCELS WITH AFFORDABLE/WORKFORCE HOUSING
RESTRICTIONS AND REVERTER PROVISIONS, IF APPLICABLE, ALL IN
ACCORDANCE WITH SECTION 29-B(A) OF THE CHARTER OF THE CITY OF
MIAMI, FLORIDA, AS AMENDED ("CITY CHARTER"), WHICH MAY BE IN THE
FORM OF A GROUND LEASE FOR UP TO A FIFTY-FIVE (55) YEAR INITIAL
TERM WITH TWO (2) OPTIONS TO RENEW FOR TERMS OF UP TO TEN (10)
YEARS EACH, A TRANSFER OF THE FEE TITLE TO THE PROPERTIES, OR
A COMBINATION OF THE FOREGOING, EACH IN ACCORDANCE WITH
SECTION 29-B(A) OF THE CITY CHARTER AND ALL SUBJECT TO THE
RECEIPT OF THE OPINION OF BOND COUNSEL THAT THE EXECUTION OF
SUCH AGREEMENTS AND THE TRANSFER OF THE PROPERTIES AS
DESCRIBED SUCH AGREEMENTS WILL NOT, BY ITSELF, AFFECT THE
EXCLUSION FROM GROSS INCOME FOR FEDERAL INCOME TAX
PURPOSES OF INTEREST ON THE BONDS SUCH AGREEMENTS MAY
PROVIDE FOR THE TRANSFER BY SFCLT OF ITS INTEREST IN THE
PROPERTIES TO ANOTHER ENTITY, SUCH AS A LIMITED OR GENERAL
PARTNERSHIP OR LIMITED LIABILITY COMPANY, PROVIDED SFCLT
RETAINS A MAJORITY INTEREST IN THE PARTNERSHIP, GENERAL
PARTNER, OR MEMBER MANAGER, AS APPLICABLE; FURTHER
PROVIDING THAT WITH RESPECT TO THE HOMEOWNERSHIP PORTION
OF THE PLANNED DEVELOPMENT, SFCLT MAY ENTER INTO A GROUND
LEASE OR SUB -GROUND LEASE WITH A CONDOMINIUM ASSOCIATION OR
ANOTHER ENTITY AS MAY BE OTHERWISE PROVIDED IN THE
AGREEMENT(S) TO FACILITATE HOMEOWNERSHIP; FURTHER PROVIDING
THAT REGARDLESS OF THE FORM OF THE TRANSFER MECHANISM OF
THE PROPERTIES TO SFCLT, ALL SUCH AGREEMENTS SHALL PROVIDE
FOR THE CONTINUED RESTRICTION ON THE USE OF THE PROPERTIES
FOR AFFORDABLE/WORKFORCE RENTAL AND HOMEOWNERSHIP
HOUSING CONSISTENT WITH SECTION 29-B(A) OF THE CITY CHARTER
AND THIS RESOLUTION; FURTHER AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AND EXECUTE ANY AND ALL OTHER NECESSARY
City of Miami Page 1 of 4 File ID: 6501 (Revision:) Printed On: 312112023
File ID: 6501 Enactment Number: R-19-0502
DOCUMENTS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY AND
BOND COUNSEL, FOR SAID PURPOSE AND IN COMPLIANCE WITH THE
REQUIREMENTS UNDER THE UNITED STATES INTERNAL REVENUE CODE
OF 1986, AS AMENDED, AS NECESSARY TO PRESERVE THE FEDERAL
INCOME TAX STATUS OF THE INTEREST ON THE CITY'S BONDS
REFERENCED HEREIN.
WHEREAS, pursuant to Resolution Nos. 01-1043 and 03-777 adopted on September
25, 2001 and July 17, 2003, respectively, the City of Miami ("City") acquired the properties
located at 6201 Northwest 17t" Avenue, Miami, Florida and 6200 Northwest 17t" Avenue, Miami
Florida, as legally described in Exhibit "A," attached and incorporated (collectively, "Properties"),
as part of the Model City Home Ownership Zone Pilot Project ("Project') using Home Investment
Partnership Program ("HOME") funds; and
WHEREAS, pursuant to Resolution No. 03-479 adopted on May 8, 2003, the City
Commission authorized the use of approximately $1.8 million of proceeds of the City's
Homeland Defense/Neighborhood Capital Improvement Bonds Series 2002 ("Bonds") to replace
the HOME funds used in the acquisition of various lots for the Project; and
WHEREAS, the aforementioned funds include an amount of $567,571.37 and an
amount of $995,905.21, which represent the purchase price and environmental clean-up for the
Properties respectively; and
WHEREAS, the Properties have remained vacant for over fifteen (15) years due to the
unwillingness of developers to accept the Properties for affordable housing development
purposes because of the restrictions placed on the use of the BondS allocated to the acquisition
of the Properties; and
WHEREAS, BHP Community Land Trust, Inc., a Florida not for profit corporation and a
501(c)(3) organization, d/b/a South Florida Community Land Trust ("SFCLT"), protects
affordable housing with a mission to provide and preserve quality, sustainable, affordable
housing for underserved populations in South Florida; and
WHEREAS, SFCLT is proposing to develop two (2) buildings, one (1) for rental with up
to ninety (90) units at 6201 Northwest 17th Avenue and a homeownership project with up to
thirty-two (32) units at 6200 Northwest 17th Avenue, for a total of up to one hundred twenty-two
(122) permanently affordable rental and homeownership residences; and
WHEREAS, both projects will be affordable in perpetuity; and
WHEREAS, the City's Administration recommends that the City enter into agreements
with SFCLT regarding the Properties, subject to confirmation that the terms of such agreements
would not affect the tax status of the Bonds; and
WHEREAS, any such agreements entered into with SFCLT shall require that SFCLT
retain at least a majority ownership (including leasehold ownership) interest in the Properties
and that the Properties revert to the City if the developments are not started within twenty-four
(24) months of the date of closing; the projects are not completed within forty-eight (48) months
as evidenced by a Certificate of Occupancy or Temporary Certificate of Occupancy, as
applicable, which requirement may be amended by the Director of the Department of Housing
City of Miami Page 2 of 4 File ID: 6501 (Revision:) Printed on: 3/21/2023
File ID: 6501 Enactment Number: R-19-0502
and Community Development ("Director"); and the units in the developments are solely rented
or sold to low-income/workforce-income households; and
WHEREAS, the Properties shall be for the development of affordable/workforce rental
and homeownership housing in accordance with Section 29-B(a) of the Charter of the City of
Miami, Florida, as amended ("City Charter'); and
WHEREAS, the City shall require evidence satisfactory to the Director that financial
commitments from the lender or lenders have been received, any mortgages obtained by the
Developer on the Properties will be subject to the approval of the Director, and the execution of
the agreements occurs simultaneously with the closing of the construction financing by the
lender(s), if any; and
WHEREAS, the aforementioned agreements along with any other necessary documents
for said purpose shall be in forms acceptable to the City Attorney and Bond Counsel;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are
adopted by reference and incorporated as if fully set forth in this Section.
Section 2. The City Manager is authorized' to negotiate and execute agreements,
including but not limited to leases, purchase and sale agreements, and/or management
agreements, all in forms acceptable to the City Attorney and Bond Counsel, with SFCLT for the
Properties for the development of affordable/workforce rental and homeownership housing,
including the sale or lease of such parcels with affordable/workforce housing restrictions and
reverter provisions, if applicable, all in accordance with Section 29-B(a) of the City Charter,
which agreements may be in the form of a ground lease for up to a fifty-five (55) year initial term
with two (2) options to renew for terms of up to ten (10) years, a transfer of the fee title to the
Properties, or a combination of the foregoing, each in accordance with Section 29-B(a) of the
City Charter and all subject to the receipt of the opinion of Bond Counsel that the execution of
such agreements and the transfer of the Properties as described such agreements will not, by
itself, affect the exclusion from gross income for federal income tax purposes of interest on the
bonds such agreements may provide for the transfer by SFCLT of its interest in the Properties
to another entity, such as a limited or general partnership or limited liability company, provided
SFCLT retains a majority interest in the partnership, general partner, or member manager, as
applicable; further providing that with respect to the homeownership portion of the planned
development, SFCLT may enter into a ground lease or sub -ground lease with a condominium
association, or another entity as may be otherwise provided in the agreements, to facilitate
homeownership; further providing that regardless of the form of the transfer mechanism of the
Properties to SFCLT, all such agreements shall provide for the continued restriction on the use
of the Properties for affordable/workforce rental and homeownership housing consistent with
Section 29-b(a) of the City Charter and this Resolution.
Section 3. The City Manager is further authorized to negotiate and execute any and all
other necessary documents, all in forms acceptable to the City Attorney and Bond Counsel, for
said purpose and in compliance with the requirements of the United States Internal Revenue
' The herein authorization is further subject to compliance with all requirements that may be imposed by
the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code
provisions.
City of Miami Page 3 of 4 File ID: 6501 (Revision:) Printed on: 3/21/2023
File ID: 6501
Enactment Number: R-19-0502
Code of 1986, as amended, as necessary to preserve the tax status for federal income tax
purposes of interest on the Bonds.
Section 4. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.2
APPROVED AS TO FORM AND CORRECTNESS:
I
i ria i ' ndez, ity Kttar ey 11 /12/2019
2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from
the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective
immediately upon override of the veto by the City Commission.
City of Miami Page 4 of 4 File ID: 6501 (Revision:) Printed on: 3/21/2023