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Home My WebLink AboutR-84-0668C' A RESOLUTION AUTHORIZING AND INSTRUCTING THE CITY MANAGER TO SOLICIT PROPOSALS FOR THE SOLE MANAGING UNDERWRITING OF THE ISSUANCE OF UP TO $950000,000'+OF MORTGAGE REVENUE SONDE F FOR THE CONSTRUCTION AND PERMANENT FINANCING OF THE OVERTOWN/PARK WEST PHASIC I PROJECT. WHEREAS, the City Commission approved in principle the Southeast Overtown/Park Community Redevelopment Plan (Resolution No. 82-755) and WHEREAS, as part of the financing process, it is necessary to obtain a sole managing underwriter for $95,000,000 mmortgage of revenue bonds for the construction and permanent financing of the Overtown/Park West Phase I Project; and WHEREAS, mortgage revenue bonds in the amount of up to $95,000,000 will be issued by the City upon authorization by the City Commission for thea construction and permanent financing of said project and may be purchased by an investment house; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized and instructed to solicit proposals for the sole management under- writing of the issuance of up to $95,000,000 of mortgage revenue bonds for the construction and permanent financing of the Overtown/Park West Phase I Project. PASSED AND ADOPTED this 14th day of June , 1984. TTEST: Maurice A. Ferre MAURICE A. FERRE, Mayor RAL G. ONGIE ity Clerk PREPARED AND APPROVED BY: Odw A/'QWM4JO , III Deputy ity ttorney AQJ/wpc/pb/126 APPROVED AS TO FORM AND CORRECTNESS: kty %,RCIA-PEDROSA torney CITY COMMISSION MEETING OF JUN 14 W No. S��S' _�t st �, i 5 . 3 - k°t � k � iiTr• L� *^t� � 4 �C+a � C3, j{ ��i B,r i4 - _ i f r# �Jtk' .F 0, f• �,, t f4 Y; f `WtV Or MIAMI. PLOV410A INTER401rFICE MEMORANDUM to: Howard. Gary : oi►ra: May 29, 1984 rll.c: City Manager _h- 3` SUBJECT: City Commission Agenda `-✓.� June 14, 1984 Resolution No. J84-360 FRom: Herbert Bailey ' 'c REFERENCES: Authorizing solicitation for Assistant City Manager;' "' underwriting Mortgage Revenue f �? v ENCLOSURES: Bonds It is recommended that the City Commission approve the attached resolution authorizing the Citv Manager to solicit proposals fo sole manaaina underwriting of t issuance of un to s95.000.000 of uevenue bons ror the construct - On October 25, 1983 (Resolution 83=972 ) the Miami City Commission approved the Phase I Overtown Transit Station Impact Area Redevelopment Program which delineated a redevelopment proposal for nine -block area adjacent to the Overtown Transit Station. The City also approved a funding package that will provide over $30 million for project implementation. (Note attached table --Delineation of The Phase I Public Investment Program and Application of Funds.) In order to achieve the redevelopment objectives of the project, which is to create affordable housing for families with an annual in- come range of from $15,000-$50,000, it will be necessary to sub- sidize development. The most feasible means of subsidy available at the present time to the City is through a long term land lease, with the return to the City being structured on a percentage of the profits to be generated and an interest rate relief for construct- ion and permanent financing. For homeownership housing a second mortgage program will be essential during the early stages of the project and to this end the City has submitted a request to Dade County for $4.2 million in funding from the Documentary Stamp Surtax funded Homeownership Assistance Loan Program (Resolution 83-976). The City of Miami has established the Affordable Rental Housing Development Program which is predicated upon the provision of a land cost subsidy and the availability of tax-exempt Mortgage KL_ k Y'r zS' 55 .y A X. } r. hF` May 29 toward Gary 2- Revenue Solias which lower the interest rate on construction and perM- the rate; $5 anent financing to approximately 3 points under prime Bonds has been previously approved by the million in Mortgage Revenue for 1,000 units to be developed under the Affordable City Commission Rental Housing Program. The City will be duplicating this program on 3 of the nine -blocks in for the acquisition of the the Phase I Redevelopment Area. Funding of the City of Miami General land will be through the utilization obligation Housing Bonds, approved by City Commission Resolution No. To 83-973. A minimum of 875 units of housing will be developed. to float Mortgage Revenue support this program it will be necessary it be beneficial to the project to allow Bonds. In addition, would the other 6 blocks the option to utilize Mortgage the developers of Although it Bonds if they are constructing rental housing. issued I Revenue is anticipated that in the Request For Proposals (RFP) to be be on certain parcels in .July that priority consideration will given it would be advantageous to have this op - to homeownership housing, if cost factors and market conditions make it 0- tion available 00, ible to construct homeownership housing at this time. A $95,00000000 1,875 Mortgage Revenue Bond would allow for the financing of all i units. All proposals for development submitted utilizing tax exempt financ- ing for rental housing must adhere to the requirements of the Affordable Rental Housing Program which include the federal stipula- tion that at least 15% of the units in each project financed with tax-exempt obligation bonds must be occupies: or be available for occupancy by persons of low income (80% or less of the median gross income) for the area. The proceeds of an issue of tax-exempt Mortgage Revenue Bonds may be loaned to a lender or directly to a Developer. The City will assume no liability for the bonds which will be secured by the development on the site. 43 - k 4 t i NOW, J _ „J s r z 5 _ y fhb Kovard Gary May 29., 1984 PHASE I REDEVELOPMENT -PUBLIC INVESTMENT The projected Phase I public investment program's sources and applications of funds is summarized below: ,f A. Sources of Funds: Amount HUD Sec. 108 Note (Principal) $ 5,958,400* UMTA Grant (Authorized) 6,700,000 General Obligation Highway Bonds (Authorized) 2,100,000 Investment Income on Highway Bonds (@ 10%/yr) 200,000 General Obligation Housing Bonds (Authorized) 11,100,000 Investment Income of Housing Bonds (@ 10%/yr) 1,100,000 Document surtax Program 4,200,000 Tax Increment Revenue Bonds ($9,413,500 - $5,958,400; HUD Sec. 108 Principal) 3,455,100 Total $34,813,500 B. Application of Funds Public Land Acquisition - Park West $13,250,000 Public Land Acquisition - Overtown 8,200,000 Mall Construction - 9th Street 4,500,000 Second Mortgage Program - Overtown 4,200,000 Capitalized Interest on Sec. 108 Note (1986-1987) 1,208,400 Issuance Expenses (TIRB) 350,000 Interest Expenses Sec. 108 (1987) 715,008 Debt Service Reserve (TIRB) - 1,260,472 Capitalized Interest (TIRB) 1,129,620 Total $34,813,500 ec ion 108 note issued by the City in 1983 comprised of $4,750,000 of principal and capitalized interest for two years totaling $1,208,400 to be taken out with tax increment revenue bonds in 1988, to be sized at approximately $9,413,500 to cover the following: Retire Sec. .108 Note Interest due on sec. 108 Capitalized Interest Debt Service Reserve Issuance Expense (incl. Note, Oct. 1988 discount to Underwriters) Total $ 5,958,400 715,008 1,129,620 1,260,472 350,000 $ 9,413,500 Y N4W� all' 7011% r�$ Ak�2 -. yp'�,p, MIM $ r M€(ViOM11►Iti1bUM = ems. DATE:L y to ph a, Ofisie April 16, 1984 SuEJE RVISID'RESOLUTi$SS J=$460 AND 3-84-361 "biYl: REFERENCES: 1 - " t A. Quint: Jones, T11 OVLRTOWN/PAR.X WEST PAA89 Deputy CityAttorney Jf ENCLOSURES: Enclosed please find the original of the Revised Resolution relative to J-84--360 and J-84-361, regarding Overtown/Park West Phase 1. AQJ:cm Enc. cc: Manny Alvarez Matthew Schwartz Is 84-666 .