HomeMy WebLinkAboutR-83-09720 0
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C!VE:1?TC1w;t.�f/PAFt� �`:i;�'I C:UC`"F1ti`;I" Y kk C)r'Jci�CP('��,ti`i'
bk-E.A MJTt�UkTSING Tril" CITY TO INITIAV1
PRWi .Cl' I4:1•'LFM[j'P1TAT1W? .
V1::E: 'hA>, the Mi xii. C.it\' Co-:nr.d.;;r,ion nnrovF>ci in principle the
`southeast Cv(:rtown,/Park 4:E?St i.o(niruni tv Develot)gent Flan (1<eso-
lution ).10. 82-755); and
wHT-PLAS, the Citv of ? iami I:aG co nsunmater9 an Inter.local
r'oonprat:ion horee lrnt with ietr_opoli tan UZrle Count' ( Resolution
No. e-3-187) for the irnlementati.or, of the Southeaf;t nvertown /Park
Vest ;<e:3ev��lor^F'�Zt F=ro7r.a�n and the Tnterooverm-,ental Cooneration
Aareem_ent (Resolution Ho. F<2-94(1} for the i,n-plementati.on of the
Overtown Urhin Tnitia.ti�tes, T=roor.-im; an(,
l%I11;It;:F�S, t'rie City of is 6e irous of i.nitiatin(7 project
i.r(ipler,entation i.n a ;nanner that h^ the most expedient and
cost efficient; and.
%`JHEKEAS, it has been determined that Tax increment f inancinq
cannot generate sufficient revenues rJ'lrinn the early stages of:
this project to allow the City to assemble a locally initiated
6evelopinent incentive rackaie capahl.e of snur.rinq sufficient
development activity to n)ake- the project feasible.
NUW, THEkEFOR.R, RF IT PRSOT,VFD ►?Y THE COIMMUSSION OF THE CITY
OF ViIA^!I, FLORMA:
Section 1. The Com—i ssion anor.oves in nrinciple the
Phase I Overtown Transit Ptiti.on I,noact Area T?eduvelohment
Pr_o%ram for the Southeast Overtown/Park finest Re-levelonment Plan,
which entails a r_f coni-r.encie,i nroararr to initiate project Liple-
mentation, a col,v of which is attached hereto an(? made a part
hereof.
Section 2. The Commission directs the City mana(ler to
initiate actions to impleinent the Phase I Overt w�IT r" S IS ON
.Station Impact Area Redevelopment Program. MEETING OF
OCT 25 1983
83
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83-972
40 446
PHASE I OVERTOWN TRANSIT STATION IMPACT AREA
REDEVELOPMENT PROPOSAL
SOUTHEAST OVERTIOWN /PARK WEST COMMUNITY
REDEVELOPMENT PROGRAM
Mimi
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SEPTEMBER 1983
OFFICE OF THE CITY MANAGER
SOUTHEAST OVERTOWN/PARK WEST PROJECT
Howard V. Gary
City Manager
83-972.
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PHASE I OVERTOWN_TRANSIT STATION IMPACT AREA
REDEVELOPMENT PROPOSAL
SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT PP,OGRAt1
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TABLE OF CONTENTS
Pace No.
INTRODUCTION
Downtown Miami in Transformation
1
Support Development in Process .
2
Public Sector Involvement•
2-3
PE ME I DEVELOPMENT PROPOSAL
Privately Initiated Development.
4
Publicly Stimulated Development •
4-3
Developers Incentives •
5-6
Prime Sources of Public Funding
6-10
Equity Participation
11
Conclusion and Recommendations .
12-14
MAPS
Map 1-Aerial Photo of Project area
15
Map 2-Proposed Initial acquisition. Funding Strategy
16
Map 3-Propcsed Initial Development Strategy.
17
TABLES
Table I -Timetable for Phase I Transit Station
Impact Area Redevelopment
13
Table II -Phase I: Overt -own Transit Station Impact
Area Proposed Sources and Uses of Funds
for Public and Private Invest-nent •
19
Table III -Phase I: Transit Station Impact area--
Prel1minary Sources and Application. of
Funds 1984
20
Table IV -Transit Station Impact Area Preliminary
Tax Increment Revenue Projections.
21
EXHIBITS
Exhibit . -:.at ar Re: Use of Street and F.=chwar
I:^prcvemenz Bords -
- S-:.a==er Re: cme Ownersh--;= Ass_sza^ce :.oars
Eaaba C- - /Cou. -_ _nzerlocal Ycreemenz-Prc;ec= :area
E :x:.i:._t J-Ci`_ �Ccunt_• Inte-ccverr-merz=.1 ac-eement-UMT.. Area
83-9'72
Is
EXECU TTV' SUI%LIARY
The attached redevelopment proposal entails the specific
redevelopment activities to be undertaken based or. the Southeast
Overtown/ Park west Community ?edevelcpmert ?lar. passed by both
t:.e City of Miami Commission and the Board of County Commissioners
4n July and December 1962, respectively.
This 200 acres of pri.•re real estate proposed for development,
just north of the central business district (CBD) and in the heart
of downtown Kia.;.i, is projected to have a 10 to 15 year build out
period. The general redevelopment concept is directed toward the
provision of a wide range of housing opportunities within downtown
Miami, and will include complimentary commercial development to
serve the area's future population. The initial public involve-
ment should be centered around the Overtown Transit Staticn which
provides excellent development opportunities which have been
created by the development of the transit station and the adjacent
government center. Tit is good public policy to target the initial
public participation in this area so that we may be able to lever-
age public funds that have already been expended through the
Community Development Block Grant (CDBG) programs (City and County)
and co.•;mitted federal funds provided under the Urban Initiatives
Grant from the Urban :pass Transit administration..
Phase I Development
initial development opportunities have been identified as
- ` tapproved �r .-ir a nine -bloc.,. ar rrv1,
_ne � re__ e � m. .e _ _,. _ •. . e roc e� �� ..n..
n.�•. _ P rtc ia^ Tr� .tea ice•, o ►n d t1 •
_. _ ,.:e we_ _ wn ���� __ r.si_ St t �e ase _.. over a
•:e-::ear >er_cd. __ _s probable that some -cdi__caticrs as to
ev nt TG,s n ^t d
the _ pes __ i.. a:o�me _ c a::ge s iv c. _: ca a on _ :e cute.,nT
e
-ramther at ,• that = r� rati cn
_ "la k study _ a_ :.s in _ _era_ _ ... The st•.:d_: will :.e
ccm=.�eted _n :ctcber :9S2. revel--=-ent along t.._s .mine -_lock
7 z 8
1
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Transit Station Impact Area is ex;ected to generate a substantial
number o5 temporary 4ob slots as well as a large nu.::er of perma-
nent - eb s . The following development is -rc' ected as a
Res ident _a!
1,675
units
(including 875 c=fordable
Office
600,000
s_
rental units)
Retail
155,000
sf
Hotel
250
rooms
(depending on market stud_,)
Projected Develomment !csts
The Phase I development cost breakdown is estimated to be:
Private Investment $183.6 Million
Public Investment 29.4 Million
UDAG (proposed Gap Financing) 28.0 Million
$241.0 Million
Sources and Uses -of Funds
The Phase I Public Investment Program's sources and applica-
tion of surds may be summarized as follows:
Millions of
Sources (1984-1985L
1983 Dollars
Authorized G.O. Housing Bonds
(less issuance expense)
$10.5
Authorized G.O. Highway Bonds
(less issuance expense)
2.0
Dade County Homeownership
Assistance Loan Program
4.2
HUD Section 108 Loan
(less capitalized interest)
6.0
.:MT: ( secured)
6 7
_saE ( 9os- :�^-)
Iand Accu_s_t_on o_ 9-Bloc-
Transit Stator. _:amact Area C20.7
9th Street Pedestrian Walkway
Zrd Ave.)
- nd Xcrtcace Prccram ( 200 loans) :. 2
$29.4
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83-972.
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in as muc:. as the develcpment plan Grants the City cf Miami
and the County the authority to fund the =ublic debt associated
with _his develcpment throuch the use cf tax increment revenues,
our research indicates that we will not be a:,le to -,;,arxet tax
increment revenue bonds urti: a substantial portion cf the Phase
pronect components have:
(1) an ironclad development and disposition agreement
consumated with a developer; and
(2) construction is well underway.
Therefore, the initial uses of tax increment bonds will be
used to refinance other public sector short-term, borrowing (HUD
Section 108 loan) and to acquire land for Phase II development.
As mandated in the redevelopment plan and the Environmental Impact
Statement for the Urban Mass Transit administration, we have devel-
oped all of the necessar-, procedures to insure ccmpliance with:
(1) the County's race conscious ordinances;
(2) the City of Miami's Affirmative Action
recuirements; and
(3) the Property Owner's Equity Participation Plan.
Developers will be selected following the procedures estab-
lished by the City of Miami's procurement ordinance as amended
and in accordance with the Intergovernmental agreement and Inter -
local Agreement executed by the City and County Commissions.
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INTRODUCTION
83-974'
DCWti t 1 1
"^OW�i �SlaMI Ire
The Southeast Overtown/Park west Redeve_-_=menz Procram
entails the redevelopment c` 200 acres of price __a_ estate
- ad,acent to the Miami Central Business District (CSD) for
new residential and commercial activity (See Map I). The
general redevelopment concept for the project area is directed
toward the provision of a wide range of housing opportunities
within a downtown setting including support uses necessary
to serve the area's future population. During the next ten
to fifteen years, this area will be transformed -from a neigh-
borhood of blighted and marginal residential and commercial
land uses into an integral component of downtown Miami. As
:Miami has rapidly become an international center for finance
and trade, the downtown area has pulsated with new growth and
vitality. Projections call for a doubling of the employee
population by the end of the century from 90,000 employees to
180,000 employees prizarily due to a continued strong expansion
of the office market.
This new downtown that is emerging will be a balanced commu-
nity with retail, office, cultural, recreational, and residential
activities. The Southeast Overtown/Park West Project area will
Provide the resource for residential development within the down-
town core area, an essential ingredient for the establishment of
a viable downtown which :roves beyond the 9-to-5 routine.
By the end of this century the project area is envisioned to
:pave _. a capabi'_-t�� of s;:pperting over 12,000 new residential
....its, and crer " , OCO , 00O sc. ft. cf cc=erc_a_ 4e:,el^-zme.- A
reversed market st;:.:.y is currantly undenray :J::1c.^. is sch educe=d
COMM-'etion _n Cctc-'-er, at which time the prz=cse-; land use
be :Zodified to reflect antic-4 7:ated chances in t :e demand
=ra.ewcrk.
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SUPPORT DLL E1OFMEti;' IV =RCCES=
There are certain activi t_as ecrur_n c wiz:.in and direct'
adjacent to the prc ect area whic:l further reiadcrces. _=s
development potential; these include:
. the continued const_uction of the Downtown
Goverrment Center which will have an emnlovee
population of over 15,000;
the construction of the Overtown Transit
Station within the project area, which will
be one of only twee stations serving the
Downtown/Brickell area;
the construction of the Downtown Com-onent
of Metrorail (DCM/Pecple .Mover) which will
link major portions of the project area
directly to the rest of the downtown core;
the continued e= ansion of the Port of Miami,
which ranks as the world's largest cruise
port, servinc in excess of 2,000,000 passen-
gers arnuall.•;
the scheduled and proposed redevelcpment of
the adjacent bayfront park system which
provides a regional amenity;
the proposed construction of the Bayside
Speciality Center at Miamarina, which will
generate over 6,000,000 visitors annually;
the proposed expansion of the Omni -Midtown
commercial and residential node located
directly to the north and the Flagler Street
Core ;,rea located directly to the south.
PUBLIC SECTOR INVOLVEMEriT
I : accrrdance w-4 --. =.he Interlccal : creemer.L -_roved
Cc --ssicn on '-arc;' 13, -951, (Rescl,:L_:.. :�c. 3_-_a7)
and t :e Bloar.. of or. April ' 9, 11932 (Resclu-
=_vcn No. R45 i -0-1) , :..^.E ^,�::.f :•ii.�..Tii has been del ec=L d _ e-.^..1LeG
redevel:=-lent powers "._ : _..-L_:.t_C!: o' the Scut heaS= Over=own/-
?3rk Wes-: ;m.':;L'. _ e de` alc-z :gent P-' -=n. (see C ) The
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83-9'7 -1
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role of the public sector will be as _ro- ectwhere
the Cit.will assume some of the costs and risks normally borne
b_ the ^rival= developer. This _roject a-4-1 be the largest
c_nt private /, ubl-c underta k-n wit:.'_:: : lorida and I.. is esti-
mated that over 51C0 .;,--lion in public funds rill leverage
ap_ roximately $1 billion in =--1 ate funds t :e next 10-13
years. Public sector involvement will be focused on land
acquisition, relocation, demolition, project marketing, con-
struction of public improvements (including the construction of
the 9th Street Pedestrian Walkwa,:), parking facilities, and the
provision of can financing where warranted. In addition, a
Special Zoning District will be established for the area which
will contain development incentives, a Development of Regional
L:tpact Statement (DRI) will be prepared for the total project
area thus eliminating the need for individual DRIs and updated
marketing studies will be made available to potential developers
and investors.
The City of Miami has established the Southeast Overtown/-
Park West Project Office under the City Manager to coordinate the
development of this crucial project.
` The project, particularly the initial phase, will be coordi-
nated and built in such a manner as to create sufficient critical
mass to change perceptions about the project area and to support
the sicnificart public investment program required.
9/13/83
83-9741
PHASE I DEVELOPMENT PROPOSAL
I
93-9'72!
PF.I vATELY I27=zAr1nED DEVE''LOPMENT
Initial development c: portunities have 'beer, identified
along Biscayne Boulevard and adjacent to the Overtowr. Transit
Station.
Properties fronting along Biscayne Boulevard have strona
potential for private investment with no government partici-
pation, due to their prestigious location fronting on Bicenter.-
nial Park, which affords spectacular views of the bayfront.
Their prime location between the Omni -Midtown and downtown
commercial cores, and proximity to Phase II of the Dr.% (People
Mover), coupled with the construction of the proposed Freedom
Tower project at Biscayne Boulevard and 6th Street, and the
planned construction of the 9th Street Pedestrian Walkway (kcal
point of the Southeast Overtown/Park West Project), create a
positive environment for development. Land values in the range
of $60 to $80 per sq.ft., combined with the proposed rezoning
of the area to higher density commercial and residential use, offer
an investment opportunity conducive to private investment.
PUBLICLY STIMULATED DEVELOPMENT
Government participation during Phase I of this project is
recommended to focus on public investment adjacent to the
Overtown Transit Station and along the 9th Street Pedestrian
Walkway. A nine -block Transit Station Impact Axea has been
identified as the location where public investment will be
concentrated. (See Map 2.) This area was selected due to its
strategic 1ccat-4 2n ac j acenr. to the Overtcwn Trans::t Station
=nd the Downtown Gcver=eft Center. : ece :•e' cement ;pith._n this
area wi_'_ maximize benefits to both the ::_rk 'Nest and Over_own
:ortions of; the ^roject area and leverage previous capital
roves* eft expenditures ns co=4—ted public f=ds (urban
ati•�es Pro_act) .
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93-972-,
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T.`.era are feas�:-la deveio pent cp: Crtu,-iit�?s aicna the nine
IC
At s "roLn.,.-g tie propose9tStreet Pedestr_ialHa_•
Overt Ram d .ran Statica- n-ecratea'
an3 the OW^. _ ;i�tZ .. _..� _
:ed use concept, ,.nderg_r 'Vi a cwr.tCWn resiCen-__al _CI^.u.unit_
CatarC t0 a Wid,^+ e teaC2 O: ::OL'S'Ilg a:;and s,
_atiOns indicata that this .._n e-...lock area _s cap al,le Of sa^port_ng
the development of 1,675 residential ur-its, 600,000 sc..C" o:
office space, 155,000 sq.ft. of retail floor area, and possibly
a 250-room hotel. The development cost for Phase I is projected
to approach $2 1 mil ion (1983 dollars), to be phased in over a
five-year period. The ni^e blocks comprising the Transit Station
:,-,.;act area will be developed according to the program and schedule
illustrated in Table I, (TILmetabie for Phase is Transit Station
Impact Area Redevelopment). Map 3 geographically illustrates
the development program for each of the Nine blocks. Some modi-
fications are probable pending the outcome of a market study to
be completed in October 1903.
It is recommended that the City/County acquire all nine
blocks comprising the Transit Station impact Area and proceed
with the spot acquisition and clearance of the Camillus house,
a rescue mission located at N.E. 1st avenue and Sth Street. (This
site will be offered for development in the future as part of the
Phase II Program).
OEV ELOPERS 1NCE:ITIVES
The reasoning for a blanket public acquisition plan stems
tram the premise that a developer must be able to achieve a
_isk/ret::rn ratio cn ..'is ^r:specti:e Transit _``dorm =.I.- ct :sea
_r.•�es;»mer._ r :a- _s a- _east to t::at __sk/ret::=n _a_io : e
ct:.e= wise ac _ _-. .._s -.e:.- best _nves-.•-:ert a:tarn;.=_ -e
_:.cited elsewhere. C.: 'en - .a develo^a:en= cppert...__t_es _denti:ied
the .._ne-zlcc k Trars:t Sta__on act ?.rep arm t: air ec-ed
p- /ren- structures, cture _ .e _.. all Cases Must ce wr_t-e::
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83-97'2i
down to or leased for a nec'_igible price as ?art cf a comprehen-
sive development incentives package if the Transit Station Impact
c�.rea i5 t0 dttraCt _ e required amount of-nvestment capita.
This CbseV.ation is predicated upon ar, extensive computer assisted
Crc `orna financial feasibility ar.al,%ses conducted by the Southeast
Overtown/Park .vest Project staff.
It is estimated that the total development that will be
generated within the nine -block area will be approximately $241
million. Included in this amount will be public expenditures
totaling $29.4 million a majority of which will be funded through
City of Miami resources. A public outlay of $29.4 million is
expected to leverage $183.6 million of private investment and in
so doing qualify the development project for $28 million of gap
financing from RUD's Urban Development action Grant Program (UDAG).
PRIME SOURCES OF PUBLIC FM;.IDI.TG
Although tax increment revenue bonds are to be the principle
financial instrument for raising capital to carry out the project's
public investment program, three conditions exist, however, which
prohibit the sale of such bonds for land acquisition and the con-
struction of the 9th Street Pedestrian Walkwav during Phase I:
(1) the Redevelopment Trust Fund lacks an historical increment,
(2) Tax increment Revenue Bonds are not marketable until construc-
tion is underway and, (3) the cost of using Bond Anticipation
*Totes (BANs) is prohibitive until the long-term bonds can be sold.
Given the acquisition of therine-block area as the center-
piece of the City's Phase I incentives package to developers,
_in ancia- capital rust be raised t:.rough readi available
fungin; sources _ nat do not rely •pop. t-c J ect_d tar•. increment
revenues as their repayment sacur i:y. Tax increment revenue
bonds secured by ta::es generated frcm Phase I ,development wil:
ser•ie as ..:e prixar_� source = fu^ s , a song ot: er incept_^es ,
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®3-9'72!
to acquire land for Phase II development and construct the balance
of the 9t.; Street Pedestrian Walk -way. Under no circumstances will
an.1 of -4.e Cit�,'s identified funding sources be used to accuire
land until such ti,-ne as an ironclad discosi tion and development
agreement between the City and the developer has been signed
for the subject property.
Table II proposes the sources and uses of funds for the
nine -block Transit Station Impact area. Map 2 illustrates from a
geographical perspective the proposed funding sources for the
acquisition of the nine -block area.
Authorized General Obligation Housing Bonds: $11.1 Million
(City of Miami)
Included among the proposed sources of public funds for
Phase I development are $10.5 million of authorized, City of Miami
• General Obligation Housing Bonds, (excluding issuance expense)
for the acquisition of Blocks 3, 7 & 8 as depicted in :lap 2.
Authorized in 1975 for an amount equal to $25 million, the proceeds
from the sale of these bonds can be used for the acquisition of
land upon which affordable rental housing can be built. A+fordable
housing is defined as a residential project where within twenty
percent (20%) of the units are earmarked for low income families
with the balance of the units allocated for moderate income
families. The recommended development program for Phase I calls
for the construction. of 875 affordable housing units on Blocks 3,
7 & S. Development on these blocks will follow the procedures
established by the Cit of Miami for the existing affordable
Housing Program administered by the Department cf Ccmmunity Develop-
ment. C'_rentl_ , t:.ere are SI1 . _ zil:icn of these author zed
bcnds available for f z e sale. Furthermore, in order for these
875 units of affordable housing to be financially feasible the
City show_, be prepared to provide in terim and permanent -financing
t:•.rough its Mortgage Revenue Bcnd Program.
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93-9'7Z
Authorized 1980 Street and Highway Genera: Oblicaticn Bonds:
S2.1 M!iIIion (City of Xiami)
Also reccmmended for sale are S2.1-million of City of Liiami
:980 Street and Highway General Ob+.ica tion bcmds (excluding
issuance expenses) authorized in 1980 fcr an amount equal to
$30 :pillion. The proceeds from the sale of these bonds will be
used for purposes of providing necessary drainage, sewer inlets,
manholes, sidewalks, curbs, gutters, acquisition of land and
rights -of -way and landscaping for the 9th Street Pedestrian Walkway.
According to the Law Department, there are no restrictions for the
use of these funds other than to be used for street and highway
improvements within the City of Miami and this can be utilized for
certain of the pedestrian improvement along the Walkway. Currently,
there are $22 million of these authorized bonds available for
future sale. (See Exhibit A.) Funding has been provided for street
improvements within the project area in the approved 1982-1988
Capital Improvements Program.
Home Ownershia Assistance Loan Program: S4.2 Million
(Dade Countv )
The Southeast Overtown/Park West Project Office has requested
that Dade County earmark 200 Homeownership Assistance Loans for
a condominium project planned for construction on the 2.3 acre
":North Block" or Block 4 on Mao 2 (already acquired with CDBG
funds). The recently enacted County ordinance establishing the
Hcme Ownership Loan Trust Fund imposes a discretionary surtax
on documents pursuant to the newly enacted State law governing
the surtax. The County staff is prepared to recommend for County
Commission approval this request once we have a development ccmmit-
mert for the 200 un-'t -ro-�ect. (See Exhibit B.)
"MT. • 56.7 :dil_:or. (U.S. Deoart^.►en: c' Transwortation
The four blocks known as the Urban initiatives Redevelopment
Area (Blocks 1 , 2 , 5 & 6 or. :'bap 2 ) l; -I I :e acquired with funds
already received frcm eU.S.De_ ate.. r Tr r: ion : r h *- -�e .t o= anspo st bar.
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83-9'72.
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Mass Transit Admi. istraticn (UMTA) . The grant awa-rd was fcr an
amount equal to $6.7 million wit. a =ecuIred local .-catch of
twenty percent (20%)(approximatel•: $1.6 million, o: which eighty-
five perce..nt (85 S) will be ; rovided by the of Aiami) . The
acquisition of these blocks has already been initiated and it
is anticipated that offers to purchase w411 be submitted to
property owners in November 1983 by Dade County.
Co., .unity Develonmer_t Block Grant Funds (CDBG)
(City of Miami and Dade County)
CDBG funds have been utilized for the acquisition of the
"North Block", Block 4 ($840,000-City of Miami and $560,000-
Dade County). The City and Countv have already committed CDBG
funds to provide the local match for the $6.7 million Urban
Initiatives Project ($1,438,767-City of Miami and $253,900-Dade
County) .
HUD Section 108 Loan Program: S6 Million (C-tv of Miami)
The $6 :million shortfall in the public investment program
as depicted in Table II is proposed to be funded through a loan
from HUD's Section 108 Program. Proceeds from this loan will be
used to acquire Block 9 and the Camillus House on the block imme-
diately west of Block 9 as depicted in Map 2. Authorized in 1974,
this program allows HUD to guarantee loans to local governments
to be used for the acquisition of land to stimulate development.
The interest on the loan will be capitalized over a two-year
period at which time the initial tax revenue bonds may be issued
to retire this short-term debt of prinicpal and interest. The
initial tax increment bond is estimated to be sized at $10.6
zillion (See Table II) .
The tax increment generated from the proposed redevelopment
grogram is : rc: ected to apt roach $3. 42 :^illicn by Noveltuber-Dece.*mber
1989. The =eak bonding debt, as i-1-lustrated in Table 17, suggests
at the $1G.6 :c__lion tax increment debt obligation required _..
1986 is achievable, ^-C17"" ng t_^.at :.nearest on tl,,e tax 4ncre^.:ent
bonds is capitalized for _ =ac-year per -;or:. 3crrowi^c $6r.:,?1:cr.
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83-9'7Z
I
from the Section 108 Program rather than raising an equivalent
amount of financial cacltal throuch :he issuance of short•-teri
debt (e.a. bcnd anticipation .^.ctes) saves the project budget
approximately $Z00,000. Furthermore, under the Section 108 pro-
gram the City does not have to :ledge its most creditworthy
source of non -ad valorem revenues as security for the loan.
Instead, the City pledges its current and future CDBG funds as
security for the loan.
Finally, the Section 108 loan will not be applied for until
such time as it can be demonstrated to the City *tanager that the
tax increment associated with the development commitments within
the Transit Station Impact area will be sufficient to render
this portion of the financing strategy feasible.
UDAG: S28 :billion (U.S. Department of housing & Urban Development)
Given the recommended development program, the Southeast
Overtown/Park west Project Office is prepared to apply for $28
million of UDAG funds to supply gap financing for Phase I develop-
ment projects as part of the comprehensive development incentives
package. Typically, HUD makes the Urban Development Action Grant
to the City (the City must prepare the grant application to HUD).
The City, in turn, lends the funds to the developer with a demon-
strated shortfall i.- his project's debt and/or equity financing.
:he terms of the loan can provide for subordinated risk and sub-
sidized interest. LMAG funding enables a developer to :nix
conventional lending with a low -interest subordinated loan. This
makes possible lower blended financing costs and, along with locally
initiated developmentincentives recc=ended in t:.is plan, wil_
enable a desirable real estate investment to beccme feasible.
is -.. ustrated in Table II, the uZAG funds may be used to
:finance the cor.str.:ct'_on of the parking ga-races/deg s associated
with. the various development opportun-ties `ent_.:-led for the Phase I
Transit Station mpact j,rea.
-_0-
9/15/83
l93--972
EQUITY PARTICIPATION
As mandated in the redevelopment program, there will be
procedures established to encourage equity participation of
existing property owners in the redevelopment process. This
will be especially promulgated within the Overtown Urban Initia-
tives sub area. Mt- is anticipated that property owners in this
area will have priority to develop their former property based
on an approved Equity Participation Plan.
Developers will be selected following the procedures estab-
lished by the City Procurement Ordinance. Final selection will be
made by the City and County Commissions and it is anticipated that
advertisement for developers for the initial projects will occur
during the first half of 1984.
y71 /a :
83-97 c
1b 1
COINCLUSA—C.l ?;+u :cyCO:�iE:1DAT;C:t5
-.his redevelopment proposal andfinancial stratecr represent
..:.e cu2.-u nation of extensive :.:.a_. s_s and researc aimed at
_-4— atinc the Southeast Overtown/Pa.rk West Redevelczme= Procram
t:Ze -last cast eff+cient, risk averse and ex edient manner.
if the City is to :Hove forth on this project at the :resent
time, there are certain financial commitments that must be forts:
coming. Tax increment financing cannot generate sufficiant
revenues during the early states of this project to allow the
City to assemble a locally initiated development incentives
package capable of spurring redevelopment within the Transit
Station Impact Area in a ti.-tely fashion. The financial strategy
included within this report provides the City with a mechanism
to raise sufficient capital to fund the incentives package which
will effectuate maxizium private investment. It :rust be under-
stood the- significant public subsidies will be required during
the early stages of this project to attract developers, insure
development consistent with the objectives of the Plan based or.
market and financial -feasibility studies. Furthermore, under
this initial financing strategy it is not necessary for the City
to pledge any of its non -ad valorem revenue sources to sell bonds
or secure the Section 108 Loan.
RE COMMEN ATIONS
The following actions are recommended for approval by the Miami
City Commission:
:. A reso_.:tion anzrovi..-c the Ove=tow^. 'transit Station
Axea Redevel^cment ?rotosal.
_ . .. reso.6 aL-noriz-nc t:.e sale o' the remaining
197 5 zousI :g =n d General Obligation Bonds (S1=
:,:_..onf f.r the est�^^1_sr-ner.L of an if'orca :e
.cus_^c ?rocrart :or :he Over=own Transit
Station Redeve_=ment ._ea. This =rcc=a.T ;a___be
_»-
83-9'72,
4
CONCLUSICN ZI-0 ECOyu•L,..vTAT_C`:S
This redevelcpment proposal and financial strategy represent
the cuLminaticn of extensive -analysis and research aimed at
_nJi ; atinC the Southeast O%ertown/park West RedeveiGcment Program
_n the most cost efficie.^.t, risk averse and expedient ma:.ner.
If the City is to :hove forth on this project at the :resent
tile, there are certain financial commitments that must be forth
coming. Tax increment financing cannot generate sufficient
revenues during the early stages of this project to allow the
City to assemble a locally initiated development incentives
package capable of spurring redevelopment within the Transit
Station Impact Area in a timely fashion. The financial strategy
included within this report provides the City with a mechanism
to raise sufficient capital to fund the incentives package which
W.U.I. effectuate maximum private investment. It must be under-
stood that significant public subsidies will be required during
the early stages of this project to attract developers, insure
development consistent with the objectives of the Plan based on
market and financial feasibility studies. Furthermore, under
this initial financing strategy it is not necessary for the City
to pledge any of its non -ad valorem revenue sources to sell bonds
or secure the Section 108 Loan.
R ECOM14ENMATIONS
The following actions are recommended for approval by the Miami
City Commission:
resclution approvinc the Overtown Transit Station
;rea Redevelcp.ment Proposal.
._ reso.6 --n aut heric:nc the sale G: t he remai_.-nc
1" Housing =nd General Gbligat_cn Bonds (,1:
Ilion) for the astabl_sh-iert c: an
Renta- rcus_^c Program for the Clvertown 'Trans=
Station Redevelopment :=_a. This :rcgram w:__ be
—i2—
83-972,
a continuation of the existing City of Miar^.i
Affordable Rental Housirc Programm administered
by the Denartment of Ccmmmunitv Development.
A resolution ararovinQ the sale of $2.1 million
of authorized 1980 Street and highwa•: General
Obiication %cnds for the construction of allow-
able comaonents of Phase I of the 9th Street
Pedestrian walkway.
4. A resolution authorizing the City Manager to
_ file an application with the U.S. Departmentof
Housing and Urban Development for a $7 million
loan under the Section 108 Loan Program includ-
i:.g two years of capitalized interest estimated
at $1 million.
5. A resolution requesting that Dade County allocate
$4.2 million from the Home Ownership assistance
Loan Program for a Second Mortgage Program for
the "North Block".
6. A blanket resolution which would authroize the
City Manager to prepare applications for Urban
Development Action Grants for Phase I develop-
ment projects that require gap financing over
and above the locally initiated development in-
centives.
The adoption of this recommended program coupled with the
continuation of the Overtown Urban Initiatives Project will enable
the City to initiate the marketing of the land for redevelopment
in mid 1984, without the before mentioned public financial commit-
ment there will be a substantial delay in the implementation of
the redevelopment program. While the financial resources are
available t:.rough the federal Urban Initiatives and COBG funds
_.._ acquisition in .. he Cvert;.wr. sub area, there are no committed
ds =cr acquisition within the Park West area. Ir. order for
! ro:ect to be successful and to meet the primary objectives
the redevelopment procram--the creation of a new residential
commu.r.ity within the downtown Geared for the downtown emplovee
populsticn and :he revitalizaticn of the Overtown Community,
-13-
9 1" ".)/83
83-9'72;
there needs to be a major concerted effort to undertake redeveiop-
ment. The redevelopment program must be of a sufficient critica=.
mass to :Hake this overall project feasible. tvi=bout cemFlementar-y
redevelopment east of the Overtown Transit, Station (?ark west)
the economic viability of the proposed redevelopment of the
Overtown Urban Initiatives Area will be greatly curtailed.
-Ii-
/1.5
83-9'72
AOF
n
MAPS AND TABLES
83--972'
0 AA
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�«ir:� �_ � r._=: S_ ..�"�:, s+•"'�TR : M.Y.: � C •r '•� � �•.-,.
7.=� ^ i.,r -+ � � •a •.•'�. ,� � j.. t_• • ~`• .•' ��.. S •liar w.� i — • �y Tf • r � �.
SOUTHEAST OVERTOWN/PARK WEST
AERIAL PHOTOGRAPH OF PROJECT AREA
-15-
MAP I
83-9 72;
t".- 0
11
c
0
0
w
W
TABLE I
G
TIMETABLE FOR PHASE I TRANSIT STATION IMPACT AREA REDEVELOPMENT
.�,�,/ • / . V' � j � � ,
a8? �
is
4rt `\ \ 4Ct f\\ OV f\` Qa'V�' % ft\
tl �'4C _ *yft
Oy
IM_ .
Iuanilun
I'm p•tf
lass U e
As
tunstrutl ion (18 Nunths} I sessed
Ides Uur
A
If th Ulv+t
mill IInN>
UM IanJ t Ikr�usin9
1
1'
h
MIA NIut4
t;u Rumx ilntrl
Assessed Iln tax Rnl is
(and A+yuls It lun 1 I WnstruNtine-_-l___.___--------t. - -- -
1 ta.Ps Ihre
- -- -
03
1
6
INaU Ub�LI
Ivn,lxm s.l. Ul11cr
Assessed
Ottite i Retell }--- —' On la pulls In es pur
land M.yu151t inn Cunstruttfun Ns ihmths _� __'___--t-.—" .._ ....
_t. ia.rs Uur
1YS
Ii1,IN111 s.l. Nutall
Il+usiny lunstruttlon
.AssessPd_L Ifn lax RullsL_laxus pur
loxes UUe
t -__.. _--- -
NStrnLtlnn
t Rt11 IU(2t NuntUs) L sse>zd
tsnd On lax pulls
, la.es Uuu
...
J
1'n+l R•sl
A•U unlli
t5,unn s t. NetdiT
_.._
tmd AuRriSUiun 1 ibvsing t Retail lun>iruq!nnNunlhg) ___1—Ajses%ed ta. Nut F1
_ 1 N.- Uue
J'AI Ihr11s
S,Unii s.l. Ilelall
Unfl:
land Atyuisitlun ' Musing t RPtall A sessed On lad Rufls
4mntructlun E18 Nunths) I_ ._ -- -.
I Taxes Uue
--
d
Uvr+luau
lS,uan $.i Xeta 11
__- _---_ _/_--s._.,.--_.--
� -
t
IINIA UIm/
14U,mm> t. UittcP
Ultltc t Retail __-.-- 1 Assessrd I_(M Tax Bulls
land Aa yulsltlan [onatrur tlon_(Ip_Nunths) ._..._.__- ...- _
._-. I la_es Our
- �-----
IIN; Un11t
I R,Un11 >.1. Nrtall
wusing Construction Assr>srJ On lax Nulls
_ I -Idxes Uur
-E---
I_Uousing toustrvctton (18 11—ths)_1 Assessed L Un Tax Nalis
land AtyulfiUon _
I.la.es Uur
1
m
RITA B, I
N Nf the/s
1•.u,uuu > f Pf rite
i aoa Amp l t f I. inn Uitice 6 RPWIi A seS;rA
1
laxa•s Uur Huv _'U1�
---
'a
Ib+l UPsi
yU;nUi
Uon (12 INmths) Ralisn
t_
}•I axes We .
--- ----
IAlusfn lons[rul �Assessrd
TABLE I
PHASE 1:
OVERTOWN TRANSIT STATION IMPACT AREA
P110110SUD SOURCES AND USES
OF FUNDS FOR PUBLIC AND PRIVATE
INVESTMENT PROGRAMS
(In Millions of Dollars)
_ SOURCES OF_
- FUNDS
G.O. Bonds
flume Ownership
EXCESS
CAPITAL
Supportable Estimated Streets
6 UMTA4 Assistance
Wdrranted
Of 1`0106
_ CIMIPONtWi _
BUDGET-
DebtI Equity Ilousin92 fnhways Grant loan Program
UDAG
(ShorwJ03
Public Investment
i. [arid Acquisition
; 20.7
--- --- $10.5 ---
16.7
2. Pedestrian Corridor
4.5
_-- ___ _-_ $2.0
--- ---
---
(2.5)
3. 2nd Mortgage Program
_4.2
--- --- --- ---
--- $4.2
---
--
1 Subtotals
?9.4
$ -0- $_O_ $10.5 $2.0
$6.7 $4.2
1-U
(16.0)
r-�
�O Private investment
1
1. Office 4110.000 sq.ft.)
f 60.0
j 49.3 f 8.6 --- ---
--- ---
110.0
$1.9
Office Parking Garage
12.0
6.0 --- --- ---
--- ---
---
(6.0)
Z. Columercia[ Development (ilotel etc.)
25.0
18.0 5.0 --- ---
--- ---
4.5
2.5
Cumnercial Dev. Parking Garage
2.5
--- --- --- ---
--- -_-
_--
(2.5)
3. Retail (155.000 sq.ft.)
12.4
8.5 1.3 --- ---
--- ---
2.0
(0.6)
Retail Parking Garage
5.7
2.9 --- --- ---
--- ---
---
2.8)
4. (lousing (1.615 units)
84.0
84.0 --- --- ---
--- ---
11.5
11.5
Hinising Parking Decks f, Garage
10.0
--- --- --- _--- --- ---
_-- ---
---
Subtotals
1211.6
$168.1 $14.9 f-0- i-0-
$_O- $_O_
$28.0
1-0-
lot als
1241.o
1168.7 114.9 110.5 62.0
$6.7 $4.2
120.0
1 6.0
i Debt rased upon 141.. 10-year term conventional financing.
except for conmercfal parking garages
which are financed with 101.
311-year
term lax exengrl bonds.
W1
lira analysis dssunius thal the City's Mortgage Revenue
Bond Program will supply interim and permanent financing for the construction
of
'
affordable iousinq upon the land acquired with General Obligation (lousing (fonds.
Slm►t(all to be initially financed by
1111D Section 108
Loan Program. to be taken out after two years with tax increment bonds.
4
Additional loan match of 11.5 million
from CROG funds
will be provided by the City of Miami and
Oade County.
9/ U/tti
0
nj
At
TABLE I::
PHASE I: TRANSIT STATION IMPACT AREA
PRELIMINARY SOURCES AND APPLICATION OF FUNDS
198a
Sources of Funds Amount
HUD Sec. 108 Note 1 $ 7,000,000
UMTA Grant 6,700,000
General Obligation Highway Bonds (Authorized) 2,100,000
General Obligation Housing Bonds (Authorized) 11,000,000
Surtax on Documents 4,200,000
Total $31,000,000
Aoolication of Funds
Public Land Acquisition -- Park West $12,500,000
Public Land Acquisition -- Overtown 8,200,000
Mall Construction.— 9th Street 4,500,000
Second Mortgage Program -- Overtown 4,200,000
Issuance Expenses 600,000
Capitalized Interest on Sec. 108 Note 1,000,000
Total $31,000,000
!Issued by the City for two years to be taken out with tax
increment revenue bonds in 1986, to be sized at approximately
:10,583,000 to cover the following:
:/7i 83
Retire Sec. 108 mote S 7,000,000
Capitalized Interest 1,9121000
Dept Service Revenue 1,275,CC0
issuance Expense 500,5100
total S-10'583,JOD
—20-
93-9'72,
0
U
TAEL= "
TRANSIT STATION IMPACT AREA
PRELIMINARY TAX INCREMENT REVENUE PROuECTIONS
1987-1989
(1983 Dollars)
Assessed
Year Value
Assessed Value
Increment
Millace Tax Increment
1982 Base S 9.05 --- ---
Nov. 1987 29.60 S 19.75 .017 S .3�
Nov. 1988 115.70 105.85 .017 1.80
Nov. 1989 211.60 201.75 .017 3.43
TRANSIT STATION IMPACT
AREA
TAX INCREMENT REVENUE
BONDS
PEAK DEBT ANALYSIS
Tax Increment
Revenue Coverage
Available for
Peak
Bondi Debt
Year 2
Tax Increment of Debt Service
Debt Service
Year
Cumulative
Nov. 1985
S .34 .1.25x
S .27
S 2.10
S 2.10
Nov. 19E6
1.30 1.25x
1.44
9.00
11.10
Nov. 1987
3.43 1.25x
2.75
10.05
21.15
1The analysis conservatively assumes that the assessed value of real property in
the valance of the district remains unchanged between 1982 and 1989. Furthermore,
trended growth orojections (appreciation of existing real property; have been
intentionally orrit:ed frog, this analysis to ieeo the tax increment forecasts on
t^e most conse,vative side.
"he analysis ass,;mes that tax increment oonas may ce issued two _rears prior to
_ne ccllect cn of a orc:.ec:;s initial tax increment. =or examcle, the
_,.x :rc^emer: ava''_cle 'or test serv'ce to oe ected f,r
Ncvemoer-December 1987 may oe usec to secure a bond issued in %ovencer 1985 for
-.1 million.
:Assumes a ._.. average annual 4nterest rate anc a 20-year Bmorti-zation schedule.
9/7/83
-21-
83-9'72,
04
EXHIBITS
83-9'72,
U
0
CITY OF MIAMI. FLCRIMA
INTER -OFFICE MEMORANDUM
To Matthew Schwartz
Southeast Overtown/Park West
FROM. Robert H. Sechen
Assistant City Attorney
EXNI3IT A
DATE. August 18, 1983 FILE:
SUBJECT.
REFERENCES: Use of street and highway,
improvement bonds in Southeast
ENCLosum"! Overtown/Park West
You requested that I review the resolution providing
for the issuance of $30 million in street and highway,
improvement bonds of the City of Miami, number 80-744
in order to determine if there is any language prohibiting
the use of proceeds within the Southeast Overtown/Park
West Redevelopment District for the purposes of providing
necessary drainage, sewer inlets, manholes, catch basins,
sidewalks, curbs, gutters and appurtenances, and the
acquisition of land and rights of way and the landscaping,
clearing and leveling thereof.
There are no'restrictions for the use of the funds
In Resolution No. 80-774 other than to be used for street
and highway improvements within the City of Miami. They
may be utilized, in addition to the construction or recons-
truction of roadways, to make improvements in the Southeast
Overtown/Park West Redevelopment area that meet the criteria
as specified in the paragraph above.
If you have any further questions in this regard please
contact me.
RNS/la
83--9 72;
E
qb
METROPOLITAN DADE COUNTY, FLORIDA
Mr. Herbert J. Bailey
Assistant City Manager
City of Miami
P. 0. Box 330708
Miami, Florida 33133
Dear Herb:
hE HIBIT B
SEP 7 IM
DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT
1401 N.W. 7 H STRSE
P.O. BOX 350250
MIAMI, FLORIDA 33135
(305) 547.7599
August 31, 1983 OFFICE OF THE DIRECTOR
This replies to your letter of August 8 concerning the
earmarking of 200 homeownership assistance loans for the con-
dominium planned for construction on the"North Block". As
indicated in my letter to you of August 29, I think we need
design and market studies of this block as well as several
others in the Southeast,Overtown/Park Nest area. Among the
things a market study should focus on is whether the condo in
the North Block will have to be presold., whether it should be
done in stages and when the market would exist. Once a market
study has been completed, it would then help to know what the
basis of the cost estimates are that were submitted with your
letter. For example, do they include the cost of structured
parking?
When we obtain favorable answers to these issues, I would
certainly be prepared to recommend that surtax monies be re-
served for the condo housing on the North Block. We would ask
the County Commission to do this at the time it approves the
request for proposals.
Sincerely,
ly C� /
Melvin J. aaaals�
MJa/eg
cc: Sergio Pereira
83-9'72.
=XHI3
made _a.z ca v zt
. :nC: .:Ct•M•=_.• .•:C::JCO�a�..7:1 �.::.0 1..:.lnt: , :i .�.olr_�C.u� �L'::Cii•iiJ.•.r[i
_'@ State of L--a_3a (he.2_na--ter referred to as the L.:LIT-)
and t :e C_ of ..13m a muna__ a'- ration ander the laws
he St-.te cz r1cr_da ( era_na-ter re-ferred to as _ne
W i E S S Z T F:
H-L- AS, b_ Resolution No. 1577-5: a:.d Ora-nance No. 82-115,
the CCUNTY has a==rcved a Plan and tax increment financing for
the Sout-.`:east OvertowniPark West Comm%i ity Redevelopment area
(hereina=tar referred to as the ?RO.:ECT), and
WFERZAS, this PRCJECT wi_l take --ace wtth_. the cc -;orate
.r..:ts o: the CIT':, and
T
;Q'r.ER:�s, the .._ t _ rayed the major role in the Preparation
cf the ?:an and f_nancsnc __-posal for the PRCJECT, and
WLr.7ZAS, the C:TY heresy requests delegation from the CCJ..TY
to oecome the redevelc; .ent agency :or the PRC„'ZC , and
the CCU::': and CI Y7 desire to provide the manner
in which the C::Y shall have certain responsibilities for the
PRCJECTI
NC:r', 'CSE= .—'FOR-, the CCL:::Y and the C:TY agree as :ol:cws:
�. �::�•�-� L~'TY Can:... ;.nTi�:i
The Court_• and City :tanagers shal_ designate a
Protect Coordinator and Protect Manager, respec-
__:e:y, to carry cut the COUNTY and C:^': res;orsi-
-____ies fc_ the PRC„Z*CT- These two :eople w:--
ma::e rec:.. endat:ons to the _zunt_ and :<_nacera
--- -.=r __t: ?'ZC:=T activities.
- "
=s_- -
•. The ,._-- s __: : ra=are _ .e _-and
ar-d ._r-..e__:es :n__.. si:a:: :,e
rav:ewed and =-. -avec t :e :::aa:
Ciz-
83-97Z
A
.i l t, t
tl+ev:.;evil �otum.�.�.on •„ui _ttr :�a.:_.. oC amour,
._vi�ttr.. :,r_ur _u ....:ustuc:. .tic C:..Y :Sil1I.
:arC ::?:...... ma .{ct_inq :JL__...s anti
sn"l. 1-c r,_sr_onrlLiO for auvcrt_yll1C :-or
1eve1ccers to s'.Ltmn__ _ pcsa:s. A Aevaew
czmmittee seal: ze est .,.isned b:. _ne C.L__
manager with representaticn __cm :,ade Coun-y
pursuant tc procedures established by the C:-Y.
2. The Cc. ,ittee sha:_ perform the function of
evaluating proposals and recommending a
developer to the :Sia,^ii City Cor,.-ission.
:he Board of Cc=t;• Cz=issioners shall- make
the final selection, and shall select a developer
that first has been approved by the Miami City
Commission and whose proposal complies with
recuirements of the request for prcposa:s. A,z:
disposition of land for the PRCJEC: shall be
accomplished in accordance with applicable federal
guidelines and applicable provisions of state law.
Promptly after the selection of the developer by
the Ccunt_ Cc=ission, the County Ccaaissicn shall
authorize the conveyance of the lard to the City
at no cost.
3. :he City shall convey the lard to the developer
for fair -.arket value for use in accordance with
the redevelopment plan and shall deposit the
oceeds frca the sale in the redevelop ant trust
=und to be utilized in accordance wit:: the
PRO EC ' budget.
B. zt.her Pro-ec- Activities
1. The C:_. shall be res=ns-..:e fcr a:: relocation
e:.cept residential re:oc=__,,...
Z. The C:T sha:_ design and construct ; up:_c -prove-
meats necessary to supccr_ :he redeye: _-en_ of
_. a ?°C. 'c. _ . The and _- . :tanagers s a:_
etera_ne that s c.. s, __ . _ :as ., r..pi_ wit..
53-9'72
_..__ona r^_rill_. _ a_._rma_i:e action and
rzc: conse:ou: cor.eorns, when Much act1V1t:cc
are funded with tax _ncr2ment :tomes.
.. .he C:.Y shall ester::! sn and set _ the
recjeve:^z,-,jert _r::st _ .rd and develop and
pr_mulcate rules, reaulatio ns and criteria
whereby the r :.D may be promptly and effec-
tively administered, including the establish-
ment and the -maintenance of books and records
and adoption of procedures whereby the C:TY
may, expeditiously and without undue delay
utilize such funds in accordance with the
approved budget for the PRCJECT.
2. The C:TY shall prepare and submit for COUNTY
approval the plans for financing the PRC.7ECT
and the annual budget for the PRCJEC: when tax
...crement nories are utilized or if tax increment
:ponies are used as a refunding mechanism to
retire instruments of indebtedness guaranteed
from non ad valorem City of Xiami resources.
3. The CITY assures the COMITY that redevelopment
activity financed with tax increment revenues
in that part of Cvertowr. between N.W. Sth Street
and N.W. 11th Street shall move aread in concert
with those redevelopment activities in Park
nest :.:.arced ..ith tax increment revenue.
;. Before the C:TY hires any financial or legal
consultants to assist in the preparation of
the tax increment financing plans, the Ci _
Nanacer and Court:: Maracer s.all determine
_..zt tne:r hiring acmplies witn appropriate
::.:::Ty =na C:Ty rec jat:cns relating to a=:_r^a-
._:e act:cn and race conscious __ncer-s.
s
83-9'72'.
nC'1)
shall sc-: a,- uCnds ._ , _rcci to
:_nance the ?RC:ZC:. n__ tax increment
_nstr--meats of indebtedness shall be sub-
mitted to the - C;m.:.:ss:an -zc. az_ rova:
_-ior to their approval oy the Ci_. Commission.
b. The Ccuntl's ob:icaticn tc aczrc=riate to the
fund shall be rescindable, at tie discretion of
the Count:, if a ;eriod of two (2) years passes
from the date of the initial bonding or indebted-
ness descrt`.ed in County Crdinance :o. 82-115
without a new sale of bonds or other new cc=__-
ment of County tax increment dollars to the pay-
ment of debt service for capital improvement or
land acquisition bonds, except that the rights
of existing bondholders shall- be protected., The
County's obligation to annuall-J appropriate to
the fund shall cc. .ence on December 31, 1982, and
continue until al: loans, advances and indebtedness
incurred as a result of the ccmnurit•: redevelopment
protect have been paid or fir two (2) years from
the effective date of County Ordinance No. 82-115
(December 31, 1982), if there is has not been,
at the end of that two year period, a pledge of
the talc increment funding granted by County
Ordinance I.e. 32-115 through the issuance, sale
and delivery of an -n str•,=ent of indebtedness such
as bonds or talc anticipation rotes'described in
Section 163.325, Florida Statutes.
_. 7o carry out the citizen. =artia:rat:cn process,
,.ne sra_: ---_e _ae C•: er _cwr. Ad•. _sc .
Beard and the ?ark .vest Civic Assoc:atiar. _--
_n.ol ement and _cor__nate C: Y and
83-9'72.
• 11 i
� Ali ..: � '.:1'•
a. :eve -or: _ _:ementat_cn schedules and _;xie-
...:a:CS Pz. all 2rtC.:EC:' act_vit_cs.
b. lion _.-le-mo:emertation sc edules an..
ti.matar:as .
Su-...-t annual prccress reports to the
CC and the community.
d. Provide the C;.L,%TY with the PRC,:EC:'s Plan
of Action and monthly updates of said Plan.
=• "::y ASSURA-1410ES
As par_ of tiis agreement the C:...
S:,all not impose a building moratorium the PROJECT
area. ;,:.y request for a permit to build or remodel
within tie PRC.:EC: area shall be processed by the C_:'C
in accordance with C:^Y codes and ordinances.
H. Shall use Cc- unity Development and other available
C::Y funds in the amount of S:00,000 per year for
two years to assist in the redevelopment of the Overtown
secticn of the PRCJE::, other than that part of Overtown
to be financed with tax increment sorties.
C. Shall fc-lcw applicable federal, CCL::_., and C:TY
regulat•iors concerning af:iraative action and race
conscious concerns in the 'hiring of all consultants.
Tv. C101=TY
As par- this agreement, the CCC:;_Y:
A. Shall acquire and ccnvey land acquired
under this Agreement to the C=TY in a ti.:.ely -Tanner
so that selectad develcpers can meet their financi.-_
r=_ _resents. he C::Y shall apt cve all prices of
necc--atec aczuiz;.zicns and _ne _n st_ union ..r
am:n en= -4-ma:.. .,geed-: cs ze=ore the C=-N7Y ccncludes
a necot-aced acquisiticn or .n st_tstes am_n ent domain
-cceed:n qs.
Zxzept as s ec--Lad -n -..is Agreement, the shall
.:e r2s=Cn5:..:2 ..r all as
;ects of t ne :: ZZ`r .
83-9'72.
f
r-iIBIT D
mad? : : s c.� la; :." i4clil.L4. , ..3, t y 3.
oade %unty, a , oi.:iza: subdiv.z.c. .ne
:tale of .crt!i (here'-na fter referred to as the :'-U :TV and the
of '"..an_, a munic.ral corpora:icn under the laws of the
State or ?Honda (here.raf ter referred to as the
T `I S S S S T
nc.==-AS, the CCUa':Y has been awarded a grant of $6,770,670
by the United States Departmen: of Transportation: Urban ;bass
Transportation: Administration (VITA) to undertake the Overtown
Urcar. :nitiatives Redevelopment ?ro.lect No. ?L-03-OC64 as amended
(?RCJ1CT) ; and
WF??-";..':AS, this PRC ,!T will take place within the corporate
limits of the City: and
WF.w ZAS, the CITY is contributing e5 % of the local cash
match needed to conduct the PROJ—ECT: and
+fHE SAS, the COU'i:^: and CI:": desire to prov-de the manner -In
Which the :I:": shall have certain responsibilities for the ?RC.;_C':
and to establish a cocr.ittee to oversee the ?ROJ_'C'..
HC;•l, TMIE7- :RS, the CCt7MY and the C:= agree as follows:
1. CEATi ,r F n0*V1Ta T=1T
An. Cvertown Urban Initia:-ves ?.ofect Management Committee
is hereby created which shall be compos.J of the
following CC'::;^`: and C:7Y staff, or the person's designee:
:ale Count^ p
"Tans ortation Administration Cooed-nator
d
- :awe cunt Transportation administra:icn ..L2r
:ni--at-•rei :?anager
- :ale County Departmen: o: .Housing and Urban :evelcpment
r 'rector
- lade County Af fir=a:i.,e Ac:_c.. :.'--ec:cr
- :ale z%anty Ccmmuni:y and = oncaic Development
83-972
A
- :Ity of Miami Assistant City Manager
- Southeast Overtown/?ark West ?rep ect
Director /Assistant C.ty Manager
- City of Miami Department of Community Development
:':rector
- City of Miami Department of Economic Developmenc
Director
a. The CCMMITTrz" shall review the Redevelopment Plan,
PROJECT budget, implementation schedules and
timetables, relocation and land disposition guidelines,
as well as guidelines for minority participation
in project hiring, contract and business develc;.ment
opportunities and make appropriate recommendations
to appropriate advisory boards and to the County
and Cltl Managers.
b. The COMMI:T=3 shall perform the function of eva,uatino
development proposals and recommending a developer
to appropriate advisory boards and to the County
-and City Managers.
c. The County and Cl-.,, Managers shall designate a
Project Coordiastor and Project Manager, respectively,
to carry out the COUNTY and CITY respons:bi=-ties
for the PROJECT. These txo people will serve as
cc -chairpersons of the CON,24ITTrE. All recommendations
to the CC,0144I' .Z shall be jointly submitted by both
co-rhalrpersons. The PROJECT budget shall be
jointly developed by them and approved by the
County and City Managers.
3. C:Ty kES?C!IS:B:T. TVS
a. Land Disacsitton
The C'".Y anal_ Frepare the lard d-sposition ralde!"ts
and procedures and PRO: ECT =a_rketi.-:g :materials
whl.^b shall be revtew,sd and approved by the mtami
.ity Ccmm;ission and Vfte BQa.-d of County :c=issioners
rrlor to tssuzxca. After auroval of the pro;act
marketing materia:s, the C:71 shall b. responsible
^cr advertising for deve_crers and tarrying out
83-9'72,
all activities to interest develcoers to submit
;or000sals. The CCMMl","^:.= shall perform the function
of avaluatine proposals and recommending a developer
to the Miam= City Commission and the Board of County
Commissione M . The Board of County Commissioners shall
make the final selection; however, in no event shall
the Board of County Ccmmmissloners select a developer
who has not first been approved by the Ktami City
Commission, nor shall the Board of County Commissioners
reject a developer who has been approved by the Miami
City Commission and whose proposal complies with the
requirements of the request for proposal. Any dispo-
sition of lard for the project shall be aecemp/:shed
In accordance with federal guidelines and applicable
provisions of state law. Promptly after the selection
of the developer by the County Commission, the County
Commission shall authorize the conveyance of the land
to the City at no cost. The actual ccnvejance shall
take place in time to meet the developer's financing
requirements. When the C.'TY. conveys the land to the
developer, the proceeds frcm the sale shall be sent
to the CCL':JTY for use in accordance with the
CITY/CCIUyTY project budget. If (a) within thirty-six
(36) months from the time the CCU= advises the CITY
that a develop:.art sate has been acquired, a developer
has not been Initially approved by the Miami City
Commission, or (b) within forty-eight (48) months
Of such time a developer has not started conzt^uctton,
the Board cf County Commissioners may withdraw :he
delegation to t::e CITY to market the land and to
the Xi=i City Commission to initially approve zhie
developer.
3
83-9'72.
P
F rovide administrative sutpert tc the
Overtown Advisory 3card.
Cacrdinate CCU:;:'' and ::TY involvement
with the cc-runity.
C. ?rcj sct Management, Administration and
Coordination
Develop Implemertation schedules and
tiaetables for all PRO.,c.CT activities
2. Monitor the implementation schedules and
timetables.
3. Submit regular progress reports to the
COU'.M. the CO.V4I"."ME and the community.
acept as specified in this Agreement, the CCC'P:Y shall be
responsible for all aspects of the PROJECT.
4. C.7Y CCM7R:S1j :C7
^he C:TY will pay $1,438,167 to the COUNTY whi_h is 851A of .he
local share of the grant. The above amount will be paid in installments
of:
$500,000 by Yovember 15, 1982
S469,383 by July 15, 1983
$469,384 by July 15, 1984
Provided that administrative or Other costs incurred by the C: '
shall be withheld from the above amounts to be paid by the CITY to the
COUNTY to the extent such costs are provided for in the approved ?RCJr-'T
budget.
The ^'i .further agrees to pay to the :cu.-sty 85: of any funds -rr:cn
the -..un: , as grantee, is required to ,^.ay from non-f edera: Sources ^n
.r:er to assure payment tf the actua- Yro ect cost as defined In the
'Z4TA rrant and any grant amendments thereto for this Yrcl ect made
z:;ozeyuent ... the !ate of execution tf this agreement ty al: ,7artie5
so lc. as sucr amendments are approved ty the City and :ount7 iSSionS.
4
83-9721
=ar.f.es hereto na•.e Caused this
A;-. ee^ent tc to executed in their names -*v their duly authcrtzed
officers and the corperate sea_a to be affixed hereto, a!: of
the day and year first above .r.•itte.
:=Ly ^ler►c v
cur, hands and seals cm this day of
C-. Y C? , a sun_c' pa:
corporation of the State of
Flor lda
By:
City :+a.•:25er
,:MEMQP0'-=A*r DADR
•�� M Mi^., poL' tical subdivision of the
R::HARD P. BRINKER, Cr.-- X ,•. o �P*;State of r :or:Ca
9y: mot.-;?�';,�,' a �� • `•�.t''�r=
Deputy Cierx �'•: M. a:I A,
• County ht�zager�,�
A??n7= AS ;0 ?ORM AND CORRECTNESS
ar:-
A.� •� L
y Attorney
83-9'721
A
A
Howard V. Gary
City Manager
CITY OF MIAM1. FLORIOA
INTER -OFFICE MEMORANDUM
FROM Herbert J. Bailey
Assistant City Manager
GATE September 26, 1983 F1LE
SU9jE=- S.E. Overtown/Park West
Community Redevelopment
Program; Phase I Redevel-
opment Proposal --Oct. 25
R EFERENCEs Commission Meeting
ENCLOSURES
It is recommended that the Miami City Commis-
sion approve the attached Resolution approving
the Phase I Overtown Transit Station Impact
Area Redevelopment Proposal for the Southeast
Overtown Park West Community Redevelopment
Program and the accompanying Resolutions deal-
ing with project implementation. These Resolu-
tions include: Authorization for the sale of
$11 million remaining unencumbered 1975 Housing
General Obligation Bonds for the establishment
an affordable rental housing program; Authoriza-
tion for the use of 1980 Street and Highway
General Obligation Bonds for the construction
of allowable street improvement components of
Phase I of the 9th Street Pedestrian Walkway;
Authorization for the City Manager to file an
application with the U.S. Department of Housing
and Urban Development for a $7 million loan
under the Section 108 Loan Program; A request to
Dade County for the allocation of $4.2 million
from the Home Ownership Assistance Loan Program
for the development of 200 units of homeownership
housing within the project area; and Authoriza-
tion for the City Manager to prepare applications
for Urban Development Action Grants for Phase I
development projects requiring gap financing.
The attached redevelopment proposal entails the specific rede-
velopment activities to be undertaken based on the Southeast Over-
town/Park West Community Redevelopment Plan passed by both the City
of Miami Commission and the board of Countv Commissioners in July
and December 1982, respectively.
83-9'72
L
A
Howard V. Gary
-2-
September 26, 1983
This 200 acres of prime real estate proposed for development,
just north of the central business district (CBD) and in the heart
of downtown Xiami, is projected to have a 10 to 15 year build out
period. The general redevelopment concept is directed toward the
provision of a wide range of housing opportunities within downtown
Miami, and will include complimentary commercial development to
serve the area's future population. The initial public involve-
ment should be centered around the Overtown Transit Station which
provides excellent development opportunities which have been
created by the development of the transit station and the adjacent
government center. It is good public policy to target the initial
public participation in this area so that we may be able to lever-
age public funds that have already been expended through the
Community Development Block Grant (CDBG) programs (City and County)
and committed federal funds provided under the Urban Initiatives
Grant from the Urban :bass Transit Administration.
Phase I Development
initial development opportunities have been identified as
they relate to the approved plan for a nine -block area surround-
ing the Overtown Rapid Transit Station, to be phased in over a
five-year period. It is probable that some modifications as to
the types of development may change slightly based on the outcome
of the market study that is in preparation. The study will be
completed in October 1983. Development along this nine -block
Transit Station Impact Area is expected to generate a substantial
number of temporary job slots as well as a large number of per:aa-
nent jobs. The following development is projected as a minimum:
Residential 1,675 units (including 875 affordable
Office 600,000 sf rental units)
Retail 155,000 sf
Hotel 250 rooms (depending on market study)
83-97 c
A
Howard V. Gary -3- September 26, 1983
Projected Development Costs
The Phase I development cost breakdown is estimated to be:
Private Investment $183.6 Million
Public Investment 29.4 Million
UDAG (proposed Gap Financing) 28.0 Million
$241.0 Million
Sources and Uses of Funds
The Phase I Public Investment Program's sources and applica-
tion of funds may be summarized as follows:
Millions of
Sources (1984-1985)
1983 Dollars
Authorized G.O. Housing Bonds
(less issuance expense)
$10.5
Authorized G.O. Highway Bonds
(less issuance expense)
2.0
Dade County Homeownership
Assistance Loan Program
4.2
HUD Section 108 Loan
(less capitalized interest)
6.0
UMTA (secured)
6.7
$29.4
Uses (1984-1985)
Land Acquisition of 9-Block
Transit Station Impact Area $20.7
9th Street Pedestrian Walkway
(Miami Ave. to N.W. 2nd Ave.) 4.5
2nd Mortgage Program (200 loans) 4.2
$29.4
In as much as the development plan grants the City of Miami
and the County the authority to fund the public debt associated
with this development through the use of tax increment revenues,
83-9'72
A%
Howard V. Gary
-4-
September 26, 1983
our research indicates that we will not be able to market tax
increment revenue bonds until a substantial portion of the Phase I
project components have:
(1) an ironclad development and disposition agreement
consumated with a developer; and
(2) construction is well underway.
Therefore, the initial uses of tax increment bonds will be
used to refinance other public sector short-term borrowing (HUD
Section 108 loan) and to acquire land for Phase II development.
As mandated in the redevelopment plan and the Environmental Impact
Statement for the Urban Mass Transit Administration, we have devel-
oped all of the necessary procedures to insure compliance with:
(1) the County's race conscious ordinances;
(2) the City of Miami's Affirmative Action
requirements; and
(3) the Property Owner's Equity Participation Plan.
Developers will be selected following the procedures estab-
lished by the City of Miami's procurement ordinance as amended
and in accordance with the Intergovernmental Agreement and Inter -
local Agreement executed by the City and County Commissions.
RECOMMENDATIONS
The following actions are recommended for approval by the Miami
City Commission in order to initiate the redevelopment program:
1. A resolution approving the Cvertown Transit Station
Area Redevelopment Proposal.
2. A resolution authorizing the sale of the remaining
1975 Housing and General Obligation Bonds ($11
million) for the establishment of an Affordable
83--9
Howard V. Gary -5- September 26, 1983
Rental Housing Program for the Overtown Transit
Station Redevelopment Area. This program will be
a continuation of the existing City of Miami
Affordable Rental Housing Program administered
by the Department of Community Development.
3. A resolution approving the sale of $2.1 million
of authorized 1980 Street and Highway General
Obligation Bonds for the construction of allow-
able components of Phase I of the 9th Street
Pedestrian Walkway.
4. A resolution authorizing the City Manager to
file an application with the U.S. Department of
Housing and Urban Development for a $7 million
loan under the Section 108 Loan Program includ-
ing two years of capitalized interest estimated
at $1 million.
5. A resolution requesting that Dade County allocate
$4.2 million from the Home Ownership Assistance
Loan Program for a Second Mortgage Program for
the "North Block".
6. A blanket resolution which would authorize the
City Manager to prepare applications for Urban
Development Action Grants for Phase I develop-
ment projects that require gap financing over
and above the locally initiated development in-
centives.
The adoption of this recommended program coupled with the
continuation of the Overtown Urban Initiatives Project will enable
the City to initiate the marketing of the land for redevelopment
in mid 1984; without the before mentioned public financial commit-
ment there will be a substantial delay in the implementation of
the redevelopment program. While the financial resources are
available through the federal Urban Initiatives and CDBG funds
for acquisition in the Overtown sub area, there are no committed
funds for acquisition within the Park West area. In order for
this project to be successful and to meet the primary objectives
of the redevelopment program --the creation of a new residential
community within the downtown geared for the downtown employee
83. 9 7Z
A
Howard V. Gary -6- September 26, 1983
population and the revitalization of the Overtown Community, there
needs to be a major concerted effort to undertake redevelopment.
The redevelopment program must be of a sufficient critical mass to
make this overall project feasible. Without complementary rede-
velopment east of the'Overtown Transit Station (Park West) the
economic viability of the proposed redevelopment of the Overtown
Urban Initiatives area will be greatly curtailed.
83-9`7.'