HomeMy WebLinkAboutR-84-1318r
J-84-1122
RESOLUTION NO. 84-1318
A RESOLUTION APPROVING IN PRINCIPLE
THE APPLICATION OF CONGRESS BUILDING
PARTNERS FOR SUBMISSION BY THE CITY
OF MIAMI TO THE U.S. DEPARTMENT OF
HOUSING & URBAN DEVELOPMENT FOR AN
URBAN DEVELOPMENT ACTION GRANT, FOR
THE ACQUISITION, SUBSTANTIAL REHA-
BILITATION AND CONVERSION OF THE
21-STORY CONGRESS BUILDING INTO AN
OFFICE AND COMMERCIAL BUILDING.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The application of Congress Building Partners
for submission by the City of Miami to the U.S. Department of
Housing & Urban Development for an Urban Development F.ction Grant
for the acquisition, substantial rehabilitation and conversion of
the 21-story Congress Building into an office and commercial
building is approved, in principle.
PASSED AND ADOPTED this 15th day of November , 1984.
ATTEST:
Rat G. Ongie, City C1
PREPARED AND APPROVED BY:
G. Miriam Maer
Assistant City Attorney
Maurice A. Ferre
Maurice A. Ferre, Mayor
APPROVED AS
Luria A. Dougher
City Attorney
D UORRFCTNESS :
CITY COMMISSION
MEETING OF
NOV 15 1984
ION No. 84-13
it
_ CITY OF MIAMI. FLORIDA 1
S3INTER -OFFICE MEMORANDUM.`.RCS UFI.(C;.
4 II0 V 3 7 =-
GATE: November 9, 1984 FILE:
To. Howard V. Gary
City Manager
FROM `Frrank 'Castaneda, Director
Department of Community Development
SUBJECT: Congress Building Partners
Urban Development Action
Grant (UDAG)
REFERENCES: City Commission Agenda
November 15, 1984
ENCLOSURES:
It is recommended that the City Commission
approve in principle the attached resolution
authorizing preparation and submission of
an application by the City of Miami to the
U.S. Department of Housing and Urban Develop-
ment for an Urban Development Action Grant
for the Congress Building Partners, for
development of the Congress Building into
an office and commercial complex with a net
area of 104,485 square feet.
City staff has worked with the Congress Building Partners in pre-
paring an Urban Development Action Grant application for submis-
sion to the U.S. Department of Housing and Urban Development for
development of the Congress Building into an office and commercial
center containing a net area of 104,485 square feet. The project,
located at 111 N.E. 2nd Avenue, consists of the acquisition and
substantial rehabilitation of the 21-story Congress Building built
in 1925. A Nor.?ination Proposal has been presented to the National
Register of Historic Places for consideration as a historic building.
This project will provide an income stream from its loan repayment
to the City for other projects that will benefit low and moderate
income residents of the City. The project will result in rejuvena-
tion of an important downtown historic Miami landmark which would
otherwise face continued neglect and possible demolition. It will
also significantly aid the Miami People Mover program. The First
Street People Mover station is located adjacent to the Congress
Building. (See attached project summary.)
84--131.8
i
r
Howard V. Gary
11/9/84
page 2
Industrial Development Bonds (IDB's) in the amount of $7,000,000
will be used in the acquisition and restoration of the Congress
Building at a total cost of $10.5 million.
The project will not be undertaken unless the U.S. Department
of Housing & Urban Development approves an Urban Development
Action Grant (UDAG) for the project in an amount of at least
five percent of its anticipated cost in order to obtain tax
exempt Industrial bevelopment Bond financing for the project.
Under Internal Revenue Code, Section 103(b)(6)(I), a UDAG is
necessary to preserve the tax exemption of this "small issue"
IDB because the project's capital expenditures will exceed
ten million dollars.
Approximately $1,500,000 in Urban Development Action Grant funds
is being requested.
Commission approval of this item is recommended.
/cr
encl. -
a
fi
.
a i
4
jyy
3
}
3
1
t
R
Y '
r ,
84�13.8
r-
1 6
CITY OF MIAMI
Department of Community Development
Urban Development Action Grant (UDAG)
Project Summary
1.
Name:
Congress Building
2.
Developer:
Congress Building Partners, Ltd.
Ira Cohen General Partner
Monroe Zalkin General Partner
Congress Tower, Inc.
Ira Cohen
Monroe Zalkin
3.
Type of Project:
The project consist of acquisition,
substancial rehabilitation and
convertion of the 21 story Congress
Building into an office and commercial
building.
4.
Location:
The site is located at 111 N.E. 2nd
Avenue, Miami, Florida.
5.
Zoning:
The site is Zoned CBD (Central Business
District) and is in conformance with the
City requirements.
6. Total Development
Cost: $10, 500, 000
7. Project Financing: UDAG: $ 1,500,000
Industrial Development
Bonds: 7,000,000
Equity 2,000,000
Total $10,500,0 00
8. Number of Jobs Construction 170
Created:
Permanent 520
9. Term of Assistance/Return to City:
a) 30 years loan t 3% interest with a call
at the 15th year. Yearly payment of
$76,529 payment deferred year 1 and 2.
$ 994,877
84-1318
b) 250bi distribution on the available cash
flow
$1,086,750
c)
At
the end of
the loan term ballon
payment
$1,006.655
d)
At the end of the
fifteenth year 25% of
net
sale proceeds
$3,323,826
Sub -total
$6,412,108
e)
Real
Estate Taxes
generated*
3,736,597
Total Benefit to City
* First year estimated tax increase $195,053. Assumed
appreciation of 3% yearly compounded during 15 years.
$10,148705
84-1318