HomeMy WebLinkAboutR-83-1147J=83-1051
MS/ah
1.2/2/83
(Revised)
4
RESOLUTION NO. ,43-11,1
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO TRANSFER 1.5 MILLION DOLLARS FROM THE
CAPITAL IMPROVEMENT FUND TO THE SOUTHEST
OVERTOWN/PARK WEST REDEVELOPMENT PROJECT
LAND ACQUISITION FUND, ON A TEMPORARY
BASIS TO FUND THE ACQUISITION OF LAND
WITHIN THE NINE (9) PHASE I SOUTHEAST
OVERTOWN/PARK WEST REDEVELOPMENT AREA.
PROVIDING FOR REPAYMENT OF SUCH TEMPORARY
TRANSFER UPON SALE OF UP TO 11 MILLION
DOLLARS IN GENERAL OBLIGATION HOUSING
BONDS IN FISCAL YEAR 1984-85. REPURCHASE
OF PROPERTY TO BE GUARANTEED BY FORMER
PROPERTY OWNER WITHIN A 24-MONTH PERIOD.
WHEREAS, the City Commission approved the Southeast Overtown/
Park West Redevelopment Plan, by Resolution No. 82-755; and
WHEREAS, the City Commission approved the Phase I Overtown
Transit Station Impact Area Redevelopment Proposal, by Resolution
No. 83-972; and
WHEREAS, the City Commission has designated the utilization
of 11 million dollars in City of Miami General Obligation Housing Bond
proceeds for the acquisition of land for the development of
affordable rental housing in the Southeast Overtown/Park West
Redevelopment Area by Resolution 83-973; and
WHEREAS, a number of vacant parcels are currently being offered
for sale to the City; and
WHEREAS, it may be advantageous to the City to initiate acquisition
of selected vacant parcels prior to the selection of a developer; and
WHEREAS, certain property owners may be desirous of selling their
property to the City with a provision for a guaranteed buy-back if
the City does not find a developer or modifies the redevelopment plan;
and
WHEREAS, funding of up to 1.5 million dollars is available for a
temporary loan (12-18 months) from the Capital Improvement Fund;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The City Manager is authorized to transfer 1.5 million
dollars from the Capital Improvement Fund to the Southeast Overtown/Park
West Redevelopment Project Land Acquisition Fund for the acquisition of
vacant parcels located in the approved Phase I Redevelopment Area.
Section 2. The General Obligation Housing Bond Fund will repay
the Capital Improvement Fund during fiscal year 1984-85, upon the
- sale of up to $11,000,000 in general obligation housing bonds.
Section 3. The City will enter into a negotiated sale only
CITY CC)MI.1x.3sIJi1
-1 MEETING-U4 7
DEC 8 1983
It 4-
when the property owner can guarantee the buy-back of the property
at the original price in cash to the City within 24 months if the
City deems the property no longer suitable for public acquisition.
PASSED AND ADOPTED THIS 8th ,day of December , 1983.
ATTEST:
_ G�� - �' J�% Gam'. C_/•���.
PH G. ONGIE
City Clerk
PREPARED AND APPROVED BY:
ROBERT N. SECHEN
Assistant City Attorney
APPROVED AS TO FORM AND
CORRECTNESS:
%W
SE R. GARCIA-P'EDROSA
ty Attorney
Maurice A. Terre
MAURICE FERRE
Mayor
-2-
83"1147
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.� CITY OF MIAMI, FLORIDA
i
INTER -OFFICE MEMORANDUM
EI
TO Howard V. Gary
City Manager
Herbert J. Bailey
FROM Assistant City Manager
DATE! November 15, 1983 FILE:
SUBJECT: Resolution for Southeast
Overtown/Park West Land
Acquisition for Placement on
the December 15 Commission
REFERENCES: Agenda
ENCLOSURES: 1
"It is recommended that the City Commission
approve the attached resolution authorizing
the City Manager to transfer $1,500,000 from
the Capital Improvement Fund to the Southeast
Overtown/Park West Phase I Land Acquisition
Program on an interim basis to fund the acqui-
sition of presently vacant structures and
vacant land which the present owner is willing
to sell through a negotiated sale."
On October 25, 1983, the Miami City Commission approved Resolution
No. 83-972, the Phase I Redevelopment Program for the Southeast
Overtown/Park West Redevelopment Program and a series of
implementing resolutions which identify funding resources for
the initial 9 block acquisition.
It was our original intention to acquire properties whose acquisition
will be funded through the City of Miami General Obligation Housing
Bonds and the HUD Section 108 Program only when a developer has been
secured. This procedure will create a severe economic hardship for
a number of property owners. Based on our current schedule,
developers will not be selected until next fall which would preclude
any public acquisition outside of the 4 block Urban Initiative Area
for at least one year.
There are currently a number of vacant structures and vacant parcels
on the market in the 4 blocks slated for acquisition with G.O. Housing
Bonds and a HUD Section 108 loan. A number of owners in these 4
blocks have approached the City concerning early acquisition. Due
to impending public acquisition, the properties have limited market-
ability both for sale or lease thus placing the owners in a dubious
financial position. It would be advantageous to purchase these
properties now since:
the overall cost of acquisition would be lower,
83-1147
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H. Gary -2- November 15, 1983
the purchase would be through a direct negotiated
sale between the City and property owners thus
saving the considerable expenses incurred through
condemnation proceedings,
it would negate the need for relocation payments
which will be a sizeable cost to the City for an
operating business,
it would remove some severly blighted structures
from the area thus improving the overall environ-
mental quality of the area.
In order to insure that the City is not left with a number of scattered
parcels and liability for the cost of purchase if a developer is not
found and the acquisition program is modified, it is recommended that
the City would initiate preemptive purchase only if the existing owner
guarantees his repurchase of the property in 24 months if the City
decides not to proceed with the project. The former property owner
would guarantee repurchase through a security bond, at the price paid
by the City.
The beforementioned procedure would be both advantageous to the City
and the distressed property owners. Interim funding would be provided
through the Capital Improvement Fund.
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