HomeMy WebLinkAboutR-83-11650
16
j-83-1086
12/15/83
83-1165
RESOLUTION NO.
A RESOLUTION APPROVING THE DESIGNATION OF
CERTAIN DEVELOPMENT GROUPS AS PROJECT
SPONSORS FOR THE AFFORDABLE RENTAL 'HOUSING
DEVELOPMENT PROGRAM.
WHEREAS, pursuant to Ordinance No. 8514, the City Commission
recognized a shortage of safe and sanitary affordable rental
housing for families and persons, including the elderly, of low
and moderate income, and authorized implementation of the
Affordable Rental Housing Development Program; and
wHERhAS, pursuant to Resolution No. 83-371, the City
Commission authorized the issuance of a Request for Proposals for
Project Sponsors (developers/owners) to solicit proposals from
multifamily housing developers, and directed the City Manager to
appoint a Selection Committee to evaluate proposals received in
response to the Request for Proposals and to make recommendations
to the City Manager; and
WHEREAS, the Selection Committee, after careful evaluation
of the proposals and after interviews with those prospective
Projects Sponsors who responded to the Request for Proposals,
ranked the proposals based upon the financial capabilities of the
proposers, the experience of the respondents in the development
and management of multifamily rental housing, the designs of the
proposed projects, the proposed rent structures, and the proposed
management plans, and submitted its report to the City Manager;
and
WHEREAS, the herein designation of Project Sponsors bears
the recommendation of the City Manager;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The following development groups are hereby
designated as Project Sponsors (developers/owners) for the
ION
corresponding development sites: (rr^� ��"
_..,
Ui
1r'= 1110N t _ -1165
DEVELOPMENT SITE
PROJECT SPONSOR
1)
Melrose Nursery .... I ......... 0...
Related Housing
(
w/Consort, Ltd.,
Thacker Construction
and Marbilt, Inc.
2)
Police Benevolent Association.....
Related Housing
w/Consort, Ltd.,
Thacker Construction
and Marbilt, Inc.
3)
Highland Park .....................
Circa, Ltd./The
Barness Organization
4)
Civic Center ......................
Related Housing
w/Consort, Ltd.,
Thacker Construction
and Marbilt, Inc.
PASSED AND ADOPTED this
ATTEST:
of
LPH GTE
ty C,lerk
PREPARED AND APPROVED BY:
-�
G. MIRIAM MAER
J Assistant City Attorney
15 day of December , 1983.
MAURICE A. FERRE
MAURICE A. FERRE, Mayor
APPROVED AS TO FORM AND CORRECTNESS:
)i4
SE GARCIA-PEDROSA
ty Attorney
GMM/wpc/pb/166
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83-1165
Ms. Dena Spillman
Chairperson
Affordable Rental Housing Program
Proposal Selection Committee
Dear Ms. Spillman:
On behalf of the partners of Affordable Rental Housing of Florida, I
wish to notify you of our decision to withdraw our proposals for the
development of rental housing on the P.B.A. and Civic Center sites.
Please understand that this withdrawal in no way reflects a lack of
interest on the part of our team in assisting the City to meet its
housing goals. As local citizens representing an ethnic cross-section
of the community, we will continue in our efforts to help to make Miami
a better place to live. We strongly believe as individuals and as a
group, that this is our responsibility.
Sinc
Ev o Le , artner
Af ordabl ental'Housing of Florida
cc: Honorable Members of the City Commissio
Howard V. Gary, City Manager
Ralph G. Ongie, City Clerk
83-1165
i
C
l
. •i
Howard V. Gary December 6, 1983
City Manager
Affordable Rental Housing
Program
Developer Recommendations
Dena Spillman, Director City Commission Agenda
Department. of Community Development Item - December 15, 1983
It is recommended that the City
Commission approve a Resolution
designating certain development
groups as project sponsors for
the Affordable Rental Housing
Development Program.
On October 24, five development groups submitted proposals
responding to the City's Invitation for Proposals for participation
in the Affordable Rental Housing Development Program. In total,
these groups submitted nine proposals for the four identified
development sites. A listing of the four development sites and the
development groups that submitted proposals for each of them follows:
SITE RESPONDENT
MELROSE NURSERY RELATED HOUSING w/CONSORT, LTD.,
TRACKER CONSTRUCTION AND MARBILT,
INC. (joint venture)
HOME AND HOUSING OF DADE, INC.
(non-profit organization)
CIVIC CENTER RELATED HOUSING w/CONSORT, LTD.,
THACKER CONSTRUCTION AND
MARBILT, INC. (joint venture)
THE BABCOCK COMPANY
AFFORDABLE RENTAL HOUSING OF
FLORIDA (joint venture)
POLICE BENEVOLENT ASSOC. RELATED HOUSING w/CONSORT, LTD.,
THACKER CONSTRUCTION AND
MARBILT, INC. (joint venture)
AFFORDABLE RENTAL HOUSING OF
FLORIDA (joint venture)
83-1.165
HIGHLAND PARK
The attachment to
proposals submitted
site basis.
RELATED HOUSING w/CONSORT, LTD.,
THACKER CONSTRUCTION AND
MARBILT, INC. (joint venture)
CIRCA, LTD. w/THE BARNESS
ORGANIZATION (joint venture)
this memorandum contains key information on the
by each of the development groups, on a site by
Independently and in group session, the Proposal Selection Committee
(Carlos Garcia, Department of Finance; Adrienne McBeth, Office of
the City Manager; Donald Wyszynski, Housing Financial Advisor, and
I) evaluated the development proposals using pre -established
criteria. The criteria, which were set forth in the Invitation for
Proposals, included: the financial capacity of the respondent to
undertake the proposed project, the experience of the respondent in
the development and management of multifamily rental housing, the
design of the project proposed, the proposed rent structure and the
management plan proposed.
The staff of Shearson/American Express, the firm selected by the
City to underwrite the Affordable Rental Housing Development
Program, independently reviewed the proposals for financial
feasibility and provided the Selection Committee with a preliminary
finding as to the financial capacity of each of the development
groups to undertake the project or projects proposed. As you know,
the underwriter must have major input in the selection process to
assure that the development groups selected have the capacity to
raise the required equity and secure project debt financing through
private lending institutions. It is important to point out here
that the bonds issued by the City to finance the Affordable Rental
Housing projects will not constitute a debt of the City, but a debt
of the financial institution purchasing the bonds. The City's
ability to issue tax exempt bonds at rates favorable to the program
will be contingent, in large part, on the financial strength and
track record of the selected project sponsors.
Interviews with the responding development groups were conducted by
the Proposal Selection Committee on November 10, 1983. Following
the interviews, the Selection Committee members independently graded
each of the development proposals using the criteria mentioned
above, employing a point system. These independent rankings were
combined, resulting in general Selection Committee ranking of the
proposals.
The results are as follows:
SITE RECOMMENDED PROPOSAL
MELROSE NURSERY RELATED HOUSING w/CONSORT, LTD.,
THACKER CONSTRUCTION AND
MARBILT, INC.
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83-1165
Of the two proposals submitted for the Melrose
one submitted by Related Housing and partners
Selection Committee to be superior to the
submitted by Home and Housing of Dade, Inc., ii
evaluation.
2
Nursery site, the
was deemed by the
competing proposal
all cat•acories of
Related Housing and partners have proposed the develop—ment of 426
rental apartments on the eight acre :Melrose Nursery site in three.
nine story midrise buildings, as opposed to the project proposed by
Home and Housing of Dade, Inc. which calls for the development of
468 rental apartments in seven midrise structures from four to ten
stories in height.
The site plan proposed by Related Housing and partners was deemed
by the Selection Committee to be better than that of Home and
Housing, Inc. Related's site plan, for example, provides for a
landscaped green belt eighty feet in width separating the
residential complex from the commercial land usage and traffic
along 27th Avenue. Home and Housing, Inc.'s, site plan calls for
unit parking bordering 27th Avenue with access to the parking area
directly from 27th Avenue. While active recreational amenities
(i.e. swimming pool, play courts, recreational building) are
included in each of the proposals, Related Housing and partners
have centrally located them and, at the same time, have provided
some amount of separation between them and the residential
structures. Also, Related Housing and partners' site plan provides
more on -site parking per unit than does the site plan submitted by
Home and Housing, Inc. Related's proposal calls for 1.1 space per
unit while Home and Housing, Inc.'s proposal provides one space per
unit or only 6 spaces for guest parking in a 468 unit apartment
complex. Related's parking plan allows for 43 guest parking spaces.
In deciding in favor of the proposal submitted by Related Housing
and partners, the Selection Committee also took the proposed rent
schedules of the respondents into consideration. Related Housing
proposes a dual rent schedule. The rental rates for 20". of the
dwelling units will be fixed at rates affordable to low income
families and individuals (see attachment). Conversely, the rent
schedule proposed by Home and Housing, Inc., is higher for all
dwelling units and no provision is made for meeting rent
affordability for low income families and individuals.
In reviewing the credentials of the two respondents in terms of
housing development and management experience, the Selection
Committee found those of Related Housing and partners to be superior
in all aspects to those of Home and Housing of Dade, Inc. Related
Housing and partners have been responsible for the successful
development and management of several thousand units of multifamily
housing while Home and Housing, Inc. has extremely limited
experience in the development and management of residential projects.
Finally, Related Housing and partners have been judged by the
program underwriter to have the financial capacity and development
track record necessary to undertake the project proposed. The
underwriter has questioned Home and Housing Inc.'s ability to
secure project financing on the basis of the information presented.
IcE
83--U65
6 r
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POLICE BENEVOLENT ASSOC. RELATED HOUSING w/CONSORT, LTD.,
THACKER CONSTRUCTION, AND
MARBILT. INC.
While both proposals received for the Police Benevolent Association
(PBA) site had merit, the Selection Committee deemed the proposal
submitted by Related Housing and partners superior to the competing
proposal submitted by Affordable Rental Housing of Florida.
Related Housing and partners are proposing to develop four, five
story apartment buildings on the eight acre PBA site containing a
total of 430 dwelling units. Affordable Housing of Florida's
proposal calls for the development of 304 rental apartments in two
and four story structures. While Affordable Housing's proposal is
less dense from the standpoint of the number of dwelling units per
acre, the nature of the low-rise construction leaves limited area
available for open space once parking requirements are met.
Related's proposal calls for the development of 126 units more than
Affordable of Florida's proposal does, but the site plan provides
more open space.
Related Housing and partners have provided a central, convenient
location for project recreational amenities (playground, pool,
community room, etc.) while the sponsors of the competing proposal
have located these amenities at the periphery of the site.
Balconies and terraces are provided for the dwelling units proposed
by Related Housing and partners. This amenity was not included in
the proposal submitted by Affordable Rental Housing of Florida.
On average, the unit rents proposed by the two development groups
were similar (see attached). However, Related Housing and partners
have proposed a dual rent schedule whereby low income families and
individuals will not be required to pay in excess of 30% of their
incomes for rent.
From the standpoint of multifamily housing development and
management experience, Related Housing and partners have excellent
qualifications as was mentioned earlier. Housing development,
construction, and management is the principal business of Related
Housing and a major component of the work of the other members of
the joint venture. Of the eleven general partners sponsoring
Affordable Rental Housing of Florida's proposal, only one, Mr.
Anthony Estevez, has experience in multifamily housing development
and management.
As was mentioned above, Related Housing and partners have been
judged by the program underwriter to possess the financial strength
to undertake the proposed project. In the opinion of the program
underwriter, Affordable Rental Housing of Florida appeared to
possess the financial capacity to undertake the proposed project,
however, incomplete information was provided.
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83--1165
HIGHLAND PARK CIRCA, LTD./THE
BARNESS ORGANIZATION
Two proposals were received for the development of the Highland
Park site. The Proposal Selection Committee recommends the proposal
submitted by Circa, Ltd. and the Barness Organization. Both
proposals call for the development of 110 rental units on the
three acre site. However., the Selection Committee found the
treatment of the site from the standpoint of project design to be
of critical importance in setting the trend for future residential
and commercial developments in Highland Park. While Related Housing
has proposed a straightforward 110 unit garden type two story
apartment complex, Circa has proposed a unique site plan which
recognizes the proximity of the site to the Culmer Metrorail
station and the influence the station is likely to have on the
scale of new development in the neighborhood.
Circa is proposing a project consisting of one seven story 59 unit
midrise to be situated on the eastern portion of the site
containing one and two bedroom apartments and 52 townhouses with
covered parking. Considerable passive open space has been allowed
for in the site plan together with active recreational facilities
including a centrally located swimming pool, paddle tennis courts
and a playground.
In favor of Related's proposal is the rent structure proposed
which, as in the group's other proposals, offers a dual rent range
to assure low income residents affordable shelter costs. However,
the proposed rent schedule is only one of several factors the
Selection Committee has taken into consideration in reviewing the
development proposals submitted. Of at least equal significance is
the design of the projects and the "liveability" of the residential
space proposed.
All factors taken into consideration, the proposal Selection
Committee deems Circa's proposal superior.
Circa, Ltd. with the Barness Organization has been judged by the
program underwriter to have the financial capacity, development
experience, and management capability to undertake the proposed
project.
CIVIC CENTER
THE BABCOCK COMPANY
Three proposals were received for the development of the three
acre Civic Center site sponsored by the Babcock Company, Related
Housing and partners, and Affordable Rental Housing of Florida.
Both the Babcock Company and Related Housing and partners proposed
135 unit midrise structures. Affordable Rental Housing of Florida
proposed two low-rise structures containing a total of 104
apartments.
The rent schedules proposed by the three respondents were similar,
ranging from $417 to $458 per month for an average two bedroom
apartment of about 700 square feet. As was the case with their
- proposals for the sites discussed earlier, Related Housing and
partners proposed a dual rent schedule.
- 5 - 83-1165
,%
c
The dwelling unit and recreation amenity package proposed by the
three development groups is similar. Project densities vary from
35 to 45 units per acre among the three proposals.
The Proposal Selection Committee viewed the proposals submitted by
the Babcock Company and Related Housing and Partners as best
serving the objectives of the program and the scale of development
for the Civic Center site.
Both the Babcock Company and Related Housing and partners have
extensive experience in multifamily Housing Development and
management and both have been deemed by the program underwriter to
have the capacity to obtain project financing.
The Selection Committee recommends the Babcock Company, however,
due to its superior financial strength, as a measure to attract
interest and competition on the part of the private housing
industry in building needed rental housing in the City of Miami,
and to insure diversity of design in the rental housing projects
financed through the program.
Provided as an additional exhibit is a breakdown of minority
participation of the development groups responding to the
Invitation for Proposals.
City commission approval of the attached resolution is recommended.
-6-
83-11f E
-�IVIC CENTER
The Babcock Company
Number of Units
Monthly Rentals
Square footage
Average Unit Costs (1)
Total Project Costs
Project Configuration
Affordable Rental Housing
30
$ 330
625
36
$ 350
634
90
$ 450
720
56
$ 42.5
704
15
$ 500
875
12
$ 490
878
135
104
$ 27,500
$ 4,489,834
Five Story
Mid -rise
$ 20,350
of Florida
Number of Units
Monthly Rentals
Square Footage
Average Unit Costs (1)
Total Project Costs
$ 3,038,475
Project Configuration
1-Two Story
Low-rise
1-Four Story
Related/Consort/Thacker
Low -Rise
Mar U i t
Number of Units
28
87
20
135
Monthly Rentals (2)
$315-375
$360-475
$450-565
Square Footage
625
708
950
Average Unit Costs (1)
$ 25,500
Total Project Costs
$ 4,628,317
Project Configuration
1-Seven Stor
Mid -Rise
HIGHLAND PARK
Circa Ltd. and The
Barness Organization
Number of Units
23
72
16
ill
Monthly Rentals
$ 415
$560-580
$ 675
Square Footage
644
732-835
19025
Average Unit Costs (1)
$ 38,800
Total Project Costs
$ 5,644,444
Project Configuration
1-Seven Stor
Mid -Rise
3-Story town
houses
Related/Consort/Thacker
ar i t
Number of Units
24
72
14
110
Monthly Rentals (2)
$290-330
$350-430
$430-525
Square Footage
625
807
975
Average Unit Costs (1)
$ 22,100
Total Project Costs
$ 3,324,520
Project Configuration
Two Story
Low -Rise
(') Excludes land costs, soft costs and financing costs.
(� Rental rates for 20% of the dwelling units will be fixed at rates
affordable to low income families.
83-1165
t
CITY OF MIAMI
AFFORDABLE RENTAL HOUSING PROGRAM
SUMMARY OF DEVELOPERS PROPOSALS
MELROSE NURSERY
Home and Housing of Dade
Inc. ano Ko an oo Cardenas
& Associates, Inc.
Number of Units
Monthly Rentals
Square footage
Average Unit Costs (1)
Total Project Costs
Project Configuration
Related/Consort/Thacker
Mar i t
Number of Units
Monthly Rentals
Square Footage
Average Unit Costs (1)
Total Project Costs
Project Configuration
POLICE BENEVOLENT ASSOC.
Related/Consort/Thacker
.taroi t
Number of Units
Monthly Rentals
Square Footage
Average Unit Costs (1)
Total Project costs
Project Configuration
Affordable Rental Housin
of Florida -
Number of Units
Monthly Rentals
Square Footage
Average Unit costs (1)
Total Project Costs
Project Configuration
One Two Three
Bedroom Bedroom Bedroom Total
Units Units Units Units
104
312
52
468
459
$ 534
570
625
738-825
925
$ 42,300
$21,100,600
2-Five Story
Mid -Rises
2-Six Story
Mid -Rises
3-Ten Story
Mid -rises y
108
264
54
426
$315-365
$360-460
$450-575
625
708
950
$ 23,900
$13,996,612
3-Nine Story
Mid -Rises
80
291
59
430
$315-360
$360-445
$450-555
625
708
950
$ 23,600
$13,931,248
4-Five Story
Mid -rises
64
200
40
304
$ 350
$ 425
$ 490
634
704
878
$ 20,700
$ 9,097,374
1-Two Story
Low -Rise
1-Four Stor:
Mid -Rise
(1) Excludes land costs, soft costs and financing costs.
(2) Rental rates for 20% of the dwelling units will be fixed at rates
affordable to low income families.
83-1165
COMPOSITION OF DEVELOPMENT TEAMS
RESPONDING TO AFFORDABLE RENTAL
HOUSING DEVELOPMENT PROGRAM INVITATION
FOR PROPOSALS BY OWNERSHIP AND ETHNICITY
HOUSING OF FLORIDA. CONSORT, LTD., THACKER CONSTRUCTION
1'I/l.\VAL., L.V.
The above companies propose to organize a limited partnership.*
The names of the principals are:
Ownership Y. Equity Contribution
-Related Housing of Florida:
George Perez, President 75% 75
Consort Ltd.. 12 12
Martin Rei ng of d, General Partner
Thacker Construction 13 13
Floyd 0. Thacker, President
Marbilt, Inc.
Aristedes Martinez, President'
*Percentages of project ownership vary depending on the site proposal. The above figures
reflect the ownership on the P.B.A. site. On the Melrose Nursery site, Consort Ltd. and
Thacker Construction own 37.5% each. Related }lousing Companies of Florida owns 25%.
On the Highland Park site, Thacker Construction and Marbilt, Inc. own 60% and 40% respec-
tively. On the Civic Center site, Thacker Construction and Marbilt, Inc. cwn 50% each
respectively. The % of equity contribution likewise is based also on the same
relationship of ownership.
to
GJ
1
N
N
Ethnicity of Development Team and Minority
Ownership of Proposed Project
Ethnicity
Anglo 25%
Black 25%
Hispanic 50%
Minority Ownership
75%
40
6
AFFORDABLE RENTAL HOUSING OF
FLORIDA
Affordable Rental Housing of
Florida is an eleven -member
partnership. The specific organizational structure of
the partnership has not been
determined. The members
of the partnership are:
Ownership % Equity
Contribution
Garth Reeves
20
20
Anthony Estevez and the March Co. 25
25
Evelio Ley
20
20
Willy Gort
7
7
Rolando Espinosa
7
7
Philip Hammersmith
3
3
George Simpson
3
3
Jessie 'McCrary
8
8
Mark Valentine
2
2
Levi Johnson
2
2
Alicia Baro
3
3
Ethnicity of Development Team and Minority
Ownership of Proposed Project
Ethnicity
Anglo 3%
Black 35%
Hispanic 62%
q Minority Ownership
97
HOME & HOUSING OF DADE, INC./
CARD_ ENAS AND ASSOCIATES, INC-
The, INC- —
The above corporations Thpropose
estoforganize
the principala joint
venture partnership.
officers are:
,�, Ownership % E uit Contribution
Home & Housing of Dade, Inc. 50 50
Willie D. Ferguson, Jr., Chairman
Cardenas and Associates 50 50
Rolando Cardenas, President
Ethnicity of Development Team and Minority
Ownership of Proposed Pro'ect
Ethnicit °A Mi_ noritt Ownershi
Black 50% 100
Hispanic 50%
AV
4w
CIRCA, LTD./THE BARNESS ORGANIZATION
The above companies propose to organize a ,joint
venture partnership. The names of the principal
officers are:
7. Ownership % Equity Contribution
Circa, Ltd. 51 51
William Wilson, General Partner
The Barness Organization 49 49
Herbert Barness, President
BABCOCK COMPANY
The Babcock Company is a wholly owned subsidiary of
Weyerhauser Corporation, a public stock company.
The chief executive officer of the Babcock Company
is Charles I. Babcock, Jr. The Babcock Company
proposes 100% ownership of the project proposed.
Ethnicity of Development Team and Minority
Ownership of Proposed Project
Ethnicit, % Minority Ownership
Anon l o 50l 50
Black 50Z
% Ownership % Equity Contribution
Babcock Company 100 As required
Ethnicity of Development Team and Minority
Ownership of Proposed Project
N
Ethnicity 1A, Minority Ownership
Unknown Unknown
CA