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HomeMy WebLinkAboutR-83-09800 i .1-83-877 RESOLUTION NO. ... A RESOLUTION APPROVING THE OVFRTOWN URBAN INITI- ATIVES PROJECT PROPERTY OWNERS'EQUITY PARTICIPA- TION PLAN POLICIES AND PROCEDURES WHICH PROVIDE FOR THREE PARTICIPATION OPTIONS FOR FORMER PROPER- TY OWNERS; ESTABLISH A 50% BLACK EQUITY INVEST- MENT GOAL; PROVIDE A PROCESS WHEREBY FORMER PROPERTY OWNERS WOULD RESPOND TO A REQUEST FOR QUALIFICATIONS WHEREBY THE OVERTOWN ADVISORY BOARD COULD DISCERN SERIOUS INTENTION AND ABILITY FOR CERTIFICATION OF PRIORITY CONSIDERATION; PROVIDE FOR TECHNICAL ASSISTANCE TO FORMER PROPERTY OWNERS FOR THE SUB- MISSION OF PROPOSALS; PROVIDE FOR PRIORITY RANKING OF POSSIBLE DEVELOPERS; AND REESTABLISH A COMMIT- MENT TO MINORITY AND BLACK PARTICIPATION IN ALL ASPECTS OF THE PROJECT; A COPY OF WHICH IS ATTACHED HERETO AND MADE + PART HERrOF. WHEREAS, by resolution 82-755, the City Commission approved a comprehensive redevelopment plan for Southeast Overtown/Park West; and WHEREAS, by resolution 83-187, the City Commission authorized the City Manager to execute an Interlocal Cooperation Agreement with Metropolitan Dade County which established responsibilities for the implementation of the Southeast Overtown/Park West Rede- velopment Project; and WHEREAS, the Intergovernmental Cooperation Agreement adopted by resolution 82-940 provided for an Overtown Urban Initiatives Project Management Committee (hereinafter referred to as "COt,1MITTEE") comprised of City and County representatives to review the guidelines for minority participation, land disposi- tion, and contract and business development opportunities; and WHEREAS, this Commission finds that major redevelopment projects within the City of Miami have typically disadvantaged the minority property owners and minority businesses for use in redevelopment without proper opportunity for participation in the redevelopment process; and WHEREAS, proper opportunity has not been afforded minority contractors and developers to participate in construction and development within City projects for which City funds are expended and WHEREAS, by resolution 83-187, the City Commission approved the Interlocal Cooperation Agreement between the City of Miami and CITY COMMISSIO MEETING OF 83-9b0r M Dade County for the implementation of the Southeast Overtown/ Park West Community Redevelopment Plan, and designated the Overtown Advisory Board as the major mechanism for Citizen Participation within the Overtown portion of the redevelopment area; and WHEREAS, the CO1',U1ITTEE and the Overtown Advisory Board have approved the Overtown Urban Initiatives Project Property Owners Equity Participation Plan Policies and Procedures (herein after referred to as the "PLAN") (a copy of which is attached hereto); and WHEREAS, all land dispositions, guidelines, and procedures are to be reviewed and approved by the Miami City Commission and the Board of County Commissioners. NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The PLAN attached hereto and incorporated by reference, is hereby approved. PASSED AND ADOPTED this 25th day of October , 1983. ATTEST: PH G. ONGIE City Clerk PREPARED AND APPROVED BY: t ROBERT N. SECHEN Assistant City Attorney APPROVED AS TO FORM A14D CORRECTNESS: . /k, Ak.A-- - Z_. e 16 �� � . JOSE ,R.- GARCIA-PEDROSA City Attorney Maurice A. Ferre MAURICE A. FERRE, MAYOR 83-980! 4 124 Howard V . Garr City Manager FRCM Herbert J. Bailey Assistant Citv Ma CITY OF MIAMI. FLORIOA INTER -OFFICE. MEMORANDUM DATE September 20, 1983 -ICE Overtown Urban Initiatives SUBJEC" Project Property Owners' Equity Participation Plan, Policies and Procedures -- REFERENCES: Guidelines; City Commission Agenda October 13, 1983 ENCLOSURES It is recommended that the Miami City Com- mission approve the attached Resolution establishing a property owners' equity participation orogram for the Overtown Urban Initiatives Project Area (bounded by N.W. 3rd Avenue, N.W. 1st Court, N.W. 6th Street, and N.W. 8th Street). This program will afford an opportunity for former property owners to participate in various phases of the proposed redevel- opment project. A 50% black equity invest- ment goal has also been established. Dade County is the recipient of a $6,770,672 dollar grant from the U.S. Department of Transportation Urban Mass Transit Admin- istration through the Urban Initiatives Program, for the acquisi- tion of four blocks adjacent to the Overtown Transit Station (the area bounded by I-95, N.W. 1st Court, N.W. 6th Street and N.W. 8th Street). The City of Miami is jointly sponsoring this project and is providing 85% of the local match ($1,438,767). An Intergovernmental Cooperation Agreement between the City of Miami and Dade County was approved by the Miami City Commission (Resolution 83-88), which delegated certain redevelopment respon- sibilities to the City including land disposition. The Overtown Redevelopment Plan, 1979, and the Southeast Overtown Redevelopment Plan, 1982, both approved by the City Commission, emphasize the need to create opportunities for existing property owners to participate in the redevelopment process. The federal government, pursuant to grant approval (Urban Ini- tiatives Project), mandated that measures be taken to insure participation of existing minority property owners in the rede- velopment program through the establishment of an equity partic- ipation program. S3-950.1 \J 0 Howard V. Gary -2- September 19, 1983 The Economic Planning firm of Hammer, Siler, George Associates, Inc., was retained by Dade County to prepare a black equity participation plan, which was submitted to Dade County in December of 1982. This plan provides the basis for the attached "Property Owners' Equity Participation Plan, Policies and Procedures -- Guidelines for the Overtown Urban Initiatives Area." Since December City staff has been working jointly with representa- tives of Dade County to prepare a plan that would most effectively balance the creation of investment opportunities for former prop- erty owners with the public need to expeditiously remove the existing blighted conditions within the area. Numerous meetings were held with area property owners and the Overtown Advisory Board, the recognized body for citizen participa- tion within the Overtown Urban Initiatives area. After extensive review, the Overtown Advisory Board approved the plan. The plan was also approved by the Project Management Committee, a joint City/County committee vested by the Intergovernmental Cooperation Agreement with the responsibility to monitor project implementation. The plan was reviewed by the Law Department and is consistent with the Miami City Charter, Section 53(c): Unified Development Projects. According to the proposed plan, former property owners will be afforded an opportunity to participate and invest in the redevelop- ment project by exercising three participation options: -- as a developer/investor; -- as a participant in an investment group; and -- as an equity investor in the development constructed on one's former property. Technical assistance will be provided by City and County staff and the Overtown Advisory Board to assist former property owners to prepare development packages. In the land disposition process, former property owners with viable redevelopment proposals will be given priority ranking. A procedure will be established to discern serious intention and ability to undertake redevelopment in order to maximize public assistance to those property owners. Provisions are also included to encourage participation by commu- nity based organizations and black developers. A 50% black investment goal has been established for this project, and the Citv and Countv are committed to minority and black participation in all aspects of this project. 83-980, 10 CITY OF MIAMI. FLORIDA INTEROFFICE MEMORANDUM TO Many Alvarez DATE Se�tember 23, 1983 FILE: A-83-213 Special Assistant to the City Manager sue,Ecr ITE14 ON AGENDA FOR OCTOBER 13TH. Resolution J-83-877 Overtown Urban Initiatives FROM: Louise Arsenault REFERENCES Project Property Owners' Secretary to Equity Participation Plan Robert N. Sechen ENCLOSURES: Original Resolution Cit Rt or ' Attached please find the original Resolution signed by Robert Sechen, Assistant City Attorney and Jose R. Garcia - Pedrosa, City Attorney. It is concerning the Overtown Urban Initiatives Project Property Owners' Equity Partici- tation Plan. Herb Bailey's Office has already sent you the original Memorandum which should accompany this Resolution. If you have any further questions please contact me at 579-6700. Thank you. LA 83-9SOt 0 L� PROPERTY OWNERS' EQUITY PARTICIPATION PLAN C�°u' o mm�Jrl° METROPOLITAN DADE COUNTY 93-9801 0 PROPERTY OWNERS` EQUITY PART iCIP4 ION =LAN FOR THE OVERTOWN URBAN INITIATIVES PROJECT AREA GUIDELINES Prepared by THE CITY OF MIAMI OFFICE OF THE CITY MANAGER SOUTHEAST OVERTOWNi PARK WEST REDEVELOPMENT PROJECT In Con;unct � on with METROPOL:TA."': DARE COUNTY :nd 7 ;:E O ERTJNIV =.0V : SOR'( BOARD ?.0. 3ox 330708 6 'A'Amt.=lorida 33:33.0708 • 3051 °->;bo 83-F9801 TABLE OF CONTENTS I. Overview Page No. 1 II. Proposed Equity Participation Policies 4 III. Consultant's Study W IV. Establishing the Public Policy Framework: A Contrast i3 V. Overtown Advisory Board's Input 17 'JI. Appendix A. Previous Drafts of the Proposed Equity Participation Policies B. Record of Public Exposure to the Equity Participation Plan C. Minority Participation Plan As Approved by the City and County Commissions In July and December, 1982 93-9E01 L1 1. OVERVIEW Metropolitan Dade County and the City of Miami are jointly sponsoring an urban initiatives joint development project in conjunction with the Overtown Metrorail Station. This project is being funded in part with a grant from the Urban Mass Transportation Administration (UMTA). The project currently includes a four -block area immediately adjacent to the Overtown Metrorail Station with the planned addition of two blocks, 65E and 65N (see attached map). The County, City and UMTA have a strong and continuing commitment to black participation in all phases of the project. To achieve this, a program has been developed to ensure equity participation in development as well as black participation in construction and employment. The concept of equity participation is based on the right of an individual or a group of individuals to share in the profits or losses of a venture as compensation for an investment. It revolves around the idea of a return on an investment of value, generally an investment of cash, property, or services. Equity participation is a requirement in order to participate in the rewards from investment. The reward is generally based on the monetary value of the investment relative to the project's total equity investment. Return on investment is the reward for incurring the risks of investment. Normally, the greater the risk of losing an investment, the greater the return. Equity invested in real estate projects may take a number of forms. Most often, an investor is asked to contribute all or a portion of the cash required for development costs not covered by debt financing. The equity contribution -1- 83-9SQi 1 1 1 s 97 N.W. ;/W.Ar 9 /Pr ST S�kllll i N.W. 7 ST. Ll N.W. PwWVrA*6/.S ST. N.W. 5 ST W R N 3 z OVERTOWN STATION REDEVELOPMENT ARE„ X OVERTOWN i TRANSIT STATION ■ ■ i ,#IN 11! 11 " a so w am 1 300 83-9801 4 need not take the form of cash. With most deve'ocers, their equity contrinution can very well be their skills and the time they spend it nutting the project together, arranging financina, supervising construction and managing the project's leasing. The most Feasible approach to accomplishing equity participation in a project similar to the Overtown Urban initiatives Protect is through a public/private investment effort. The UMTA has provided 80', of the total cost of land acquisition, demolition, and administration. Of course, the remaining 20% is sponsored by the City of Miami, Dade County, and the State of Florida. As a result of the study provided by the consultant, the City of Miami, Dade County Transportation Administration, and the Project Management Committee have drafted proposed policies and procedures in implementing the black equity participation objectives for the Overtown Urban Initiatives Project The Overtown Advisory Board iOAB), as the oversight mechanism, also provided a review of the policies. -3- a3-9SO, L] 0 II. PROPOSED CIS AICIP�iOtyPOLIE 1982, the Board of County Commissioners passed Resolution authorizing the solicitation of bids from consulting firms to ack Equity Participation Plan for the Overtown Transit Develop - The consulting firm of Hammer, Siler, George Associates, con- ade County, completed the study and on December 7, 1982, the my Commissioners accepted the study in principle, but has yet same. Equity Participation Policies are provided to facilitate land ulbpuaii.iun and the redevelopment process of the four -block area and possibly two additional blocks as described in the Overview section of this report. Since the initiation of efforts by the City and County to develop the pro- posed policies, several revisions have been proposed (see Appendix "A"). Included in Appendix "A" is the original draft and two revisions. Changes are underlined in the two revised copies. The following is the proposed Black Equity Participation Plan for acceptance by both the City and County Commissions: -4- 83-980 4 0 Overtown Jrban initiatives Project* Black Equity Participation Plan Policies and Procedures The purpose of this paper is to describe the policies and procedures to be used in implementing the Black Equity Participation Plan for the Overtown Urban Initiatives Project. BACKGROUND Metropolitan Dade County and the City of Miami are jointly sponsoring an urban initiatives joint development project in conjunction with the Over - town METRORAIL station. This project is being funded in part with a grant from the Urban Mass Transportation Administration. The project currently includes a four -block area immediately adjacent to the Overtown METRORAIL station. It should be noted that the City and County are also involved in redevelopment activities in the entire Park West area. The specific procedures discussed in this paper apply only to the Overtown Urban Initiatives Project. The County, City and UMTA have a strong and continuing commitment to black and minority participation in all phases of the Project. To achieve this, a program has been developed to ensure equity participation in development as well as black and minority participation in construction and employment. Former property owners will be given an opportunity to participate and invest in the redevelopment project. Three participation options will be provided to all property owners: (I) As a developer/investor; (?) As a participant in an investment group; and (3) As an equity investor in the development constructed on one's former property. *9/6/83; also see Minority Participation Plan, Appendix C. -5- Q3-9iso, THE SLACK ECUI7Y PAP.TICIPATION PLAY AtiD SAFE Y PPOCz,CUPES The concept of equity participation involves the opportunity for all current property owners in the project area to participate in the redevelopment activities. A particular initiative in this project is to stimulate black equity investment and a 50`_ Black Equity Investment Goal has been established. The foliowinc is a general outline of the procedures that will be used to achieve this objective: 1. All property in the project area shall be acquired by the County. Property owners will be reimbursed for property costs and reloca- tion expenses in accordance with applicable Federal and local guidelines. Property will be appraised at the highest and best use as specified in the Overtown/Park West Redevelopment Plan which has been approved by the City and County Commissions. 2. Property owners (title holders to land on the date of offer to purchase) who desire to redevelop their property consistent with the Southeast Overtown/Park West Redevelopment Plan will be given priority in the disposition of the land based on the following procedures: (a) The City of Miami will utilize the procedures established by the Miami City Charter, Section 53(c): Unified Develop- ment Projects. (b) Disposition guidelines and Request For Proposal requirements will be approved by the Dade County Commission and the Miami City Commission pursuant to public hearings. (c) Property owners must indicate within 60 days of receipt of offer to purchase from Dade County their desire to redevelop their property (former) and submit a Request For Qualifica- tions (RFQ) to the City. The RFQ will request preliminary information on development and financial strategies. The purpose of the RFQ is to discern serious intention and ability 83 -880l •take redevelopment. The Overtown Advisory Board (OAB) Project Management Committee will review the RFQs and their recommendations to both the City and County ions for certification of priority consideration in )osition of redevelopment parcels involving the partic- of former property owners. i shall establish redevelopment parcels of at least in size (or one-half block) consistent with expressed of the property owners to redevelop (based on RFQs). al assistance utilizing funding provided by the Urban ives Grant will be provided by the City and County id the OAB. This assistance will be available to 3roperty owners and investment groups which contain•a of 50% representation of former property owners. The technical assistance will be provided for the preparation of responses to RFQs and competitive Request For Proposals. 3. A competitive Request For Proposals (RFP) will be developed and advertised within six months from the date of offer to purchase by Dade County, pursuant to the Miami City Charter, Section 53(c): Unified Development Projects; and Florida Statute 163.380: Disposal of Property in Community Redevelopment Areas. The selection of the developer will be according to the following priority ranking: (a) Former property owners for development parcels which encompass their former property; (b) Investment Groups composed of a minimum of 50% former property owners from the four -block area; (c) Community Based Organizations; (d) Responsive black developers; (e) Joint ventures which include black developers; and (f) Others. -7- 83-9F01 1 The selected developer will be required to offer all former property owners of the site being developed an equity position in the development. This investment will be at least equal to the sale orice of the land when purchased by Dade County. A former property owner may invest less if they so desire. 5. The City has primary responsibility for working with the selected developers to develop land disposition agreements as specified by the RFP. It is anticipated that the land will be made available to developers in accordance with City and County requirements. OTHER PROJECT ACTIVITIES AND GOALS In addition to the Black Equity Participation Plan discussed above, the City and County are committed to minority and black participation in all aspects of areas for all developers in the project area: • contracting and construction goals; construction hiring goals; s permanent hiring goals; and • retail space ownership goals. 10 83-960 4 4 CC';SvLTAy ; S S'li CY The consultant, Hammer, Siler, George Associates, along with two local firms: Greenberg, iraurig, Askew, Hoffman, Lipoff, Quentel and Wolff, P.A.; and Ronald E. Frazier and Associates, P.A., were commissioned to develop and provide the County with an operational Black Equity Participa- tion Plan and to determine whether modifications are required to meet local, state and federal laws. The purpose for establishing the public policy is to provide the property owners with the maximum opportunity to participate in the redevelopment process, but not allow the property owner to obstruct the public purpose of eliminating blight. in order to accomplish the above, the following policy statements were recommended by the consultant: Policy 1. The role of the County and the City with respect to present and future activities in the Overtown Transit Redevelopment Area is to facilitate the removal of blight and the redevelopment of the area in a manner consistent with the stated goals of assuring area property owners of an opportunity to participate in any future redevelopment activities. Policy =2. Property owners within the Overtown Transit Redevel- opment Area, acting alone or as partners with other private developers, will be given the first right to develop their properties consistent with the requirements of the Redevelopment Plan. This right will last at a minimum of 18 months, but will extend for a period of five years provided that the owner voluntarily complies with local government directives to eliminate the blighted conditions of said property. In either case should local govern- ment acquire such properties, the current prooerty owner will acquire residual rights to invest in any development which occurs, in whole or in part, on his property up to the value of the property at the time of public acquisition. 10 83-980, %c-Jal taKina 7- any :,r;oer-y tnrougn the cower eminent :omain Ni., :e oronibitad -or _ zeriod -J Tionths uniess i. .s rased uoon-Joiunzary agree- -ts zetweer .he aunty ana the owner in ,vertown Transit Receveioomert Area. A41.ar 18 ;tns, the power of eminent eomain may be used if can be demonstrated t.iat the property owner has ,led to voluntarily comply with County recuirements eliminate the blighted conditions or has failed proceed in an effective manner after notification remove the property of such blighted conditions. ;h action will not, however, negate the property ier's residual right to invest in any development ich occurs, in whole or in Bart, on his property to the value of the property (or part of the prop- ty) at the time of public acquisition. a County and the City seek to assist property owners the Overtown Transit Redevelopment Area in expanding air development capability. To this end, the County I the City will encourage private developers to develop joint proposals with area property owners; provide technical studies relating to the market and financial feasibility of the area's Urban Design Plan; and provide technical assistance to property owners so as to assure equity participation by black property owners. Policy =S. Both the County and the City recognize the importance of utilizing public resources to achieve public objec- tives. Therefore, it will be the stated policy of the County and the City in the use of public financial resoruces to use such funds so as to encourage black equity participation. Further, given the limited nature of such funds and their declining availability from the Federal: Government, it shall be the stated policy to achieve maximum leverage in the use of public resources such that they achieve the twin goals of eliminating bl`,ght and fosterin? black equity carticipation. The policy, t:,,er_fore, permits the -se of =ands to facilitate development _r.rouch the e'4mination of c'ignt even in cases •m ere lccal government does not tape _ontro7 o* the lane.. 'ammer, ci'cr, �2�r7a nsF.vcZ3.es, 2'acK -�U1-% Dart'c� '. �r :R ',e .;vertown 7ransiteaevet::oment rre aml, or'ca, 93-9801 4 7o oe e`fectiveiy 1-rolementez, :ne _forestate a :o 1c. sta:enents must, 'lave a :rocrammatic approach desicRed :o ac_omolisn the oolicy oo;'_ctives. T'wo such aooroacnes are: a prescribed safety :eriod; and `_; an extended safety period. -ianimer, Siler, ;eorze .Associates orcv'ded 3n exCanaeo -14scusoi-n J' :,ese two aocroacnes: ?rescr",ea Period The Southeast Cvertown/Park :lest Redevelopment Plan includes a commitment by local government that if the existing property owners agree to develop the land in conformance with the plan, their land will not be acquired. The local government should guarantee a safety period during which local property owners would have the opportunity to package their own redevelopment activities consistent with the redevelopment plan. This safety period should be approximately 18 months in length, roughly the amount of time required for property condemnation and acquisition under the "long -take" process. Under the long -take condemnation process, the local government retains the right to cancel a con- demnation order. It has the discretion as to which properties to proceed with first and which to hold until the end of the process. During this safety period, local government should assure property owners that they will have the opportunity to package real estate deals consistent with the plan without fear that the local government will use the power of eminent domain to obtain their prooerty. A property owner feeling that he or she could package his own deal would be free to notify the appropri- ate local government agency which would then make a determina- tion as to the property owner's progress and prooability of success. The agency would also review the extent to which the proposed project was consistent with the overall redevelopment plan. In the event that local government determined that the property owner had a high orooadility of achieving success in packaging a real estate venture consistent with the flan, then local govern- ment could determine not to proceed with its process for takina the property. On the other hand, if local government concluded tha,. ,.here was not a nigh prooaoility of success `or the procerty to be develcpeo consistent with the plan, then local government could „imediately oegin oroceedinos to take :he rignti to the land ,,nless it wall_ =or 'ne extended safety period. In any case, however, local government could not exercise its ;final eminent domain richts Until the safety period of 12 months hap teen tom- :ietea. =It any .isle curing this safe:y period .vnen the prccerty :wner =eels :ia: ie -as a real estate /enture .na: 4s ^r3C:`C31 r ana =inan_atle ar.d :onsiscent with :ne -.;an, :ne -.rocerty :wner and; or hi s oartne-s wou i o ^.o :4 .9t + DC3' . Vernment :^dt 9 r'Ce'/El - :oment oro:ec: is :tout to ce w3ra; _ed+:ursjant to :ne _:a' ;f 83-9Sa: 4 4 mere ver, -e :Ome er-:y er ��a;i, owe .. �u.�.„ Jr7� �wr. s .rno "or one reason or another do not ;iew the 0000r'I:unity to-ackage Lneir own ^eai estate ventures :s v ao;e. _ven Jur'n" _ne safe`'/ oer'od, these orooerty owners Tay immen'a'-al -oti`y and oertify to the aoorooriate iota( 7overnment agency .nat tney uo not i-tend to 3ackaae tneir own real estate ventures. .n tnese cases where :rooer`_v owners nave 'veil 'Jo heir r4gnt -o aeve,Jo tneir own ventures, local aovernment may immediately orocaed to iLi;ize its rower Jf eminent domain to 'mplement ;ale redeve;ocment glan objective of eliminating blight. Property owners who do not develop their own real estate projects will have two remaining opportunities to exercise their right to equity participation. An Extended Safety period. Property owners in the Overtown Transit pedeve ooment Area snould have the opportunity to extend this safety period beyond 13 months. Extending the safety period to five years would orovide property owners with additional lever- age in negotiating with private developers and it would also provide a sufficient time in which market conditions might change such that development would become feasible. On the other hand, such an extension should require evidence that the property owner is not obstructing the public objective of eliminating blighted conditions in the Overtown Transit Redevelopment Area. Therefore, the prooerty owner should be required to remove the said blighted conditions from his or her property during the first 18-month period in order that he be sic] automatically qualified for the extended safety period. If after five years the property owner has failed to package and finance an approved development for the site, then the County would have the right to exercise its powers of eminent domain. The property owner, however, would still be entitled to reinvest in any new development proposed for the site.2 ../ 1 d, gyp. 6-.rV I JO 1 V . ESTABLISHING THE PUBLIC POLICY FRAMEWOP,K; A COPJ,RAST The following provides a comparison of suggested policies included within the report entitled Black Equity Participation in the Overtown Transit Redevelooment Area prepared by Hammer, Siler, George Associates (HSG) and policies and procedures proposed for adoption by the City and County Commissions. Suggested Policy #1, HSG The role of the County and the City with respect to present and future activities in the Overtown Transit Redevelopment Area is to facilitate the removal of blight and the redevelopment of the area in a manner consistent with the stated goals of assuring area property owners of an opportunity to participate in any father redevelopment activities. Proposed Public Policies and Procedures Oil) -- The concept of equity participation involves the opportunity for all current property owners in the project area to invest in and share in the profits from the redevelopment activities. A particular initiative in this project is to stimulate black equity investment and a 50% black equity investment goal has been established. Suggested Policy #2, HSG Property owners within the Overtown Transit Redevelopment Area, acting alone or as partners with other private developers, will be given the first right to develop their properties consistent with the requirements of the Redevelopment Plan. this right will last at a minimum of 18 months, tut will extend for a period of five years provided that the owner voluntarily complies with local government directives to eliminate the blighted conditions of said property. In either case should local government acquire such properties, the current property owner will acquire residual rights to invest in any development which occurs, in whole or in part, on his property up to the value of the prooerty at the time of public acquisition. -13- 83-9801 4 L] Pr000sed Public Policies and Procedures ;=? -- Property owners title holders to land on the date of offer to purchase) who desire to redevelop their property consistent with the Southeast Overtownr Park West Redevelopment Plan will be given priority in the disposition of the I and based on the following procedures: (a) The City of Miami will utilize the procedures established by the Miami City Charter, Section 53(c): Unified Development Projects. (b) Disposition guidelines and Request For Proposal requirements will be reviewed by the Dade County Commission and established by the Miami City Commission pursuant to a public hearing. (c) Property owners must indicate within 60 days of receipt of offer to purchase from Dade County their desire to redevelop their property (former) and submit a Request for Qualifications (RFQ) to the City. The RFQ will request preliminary information on development and financial strategies. The purpose of the RFQ is to discern serious intention and ability to undertake redevelop- ment. The Overtown Advisory Board (DAB) and the Project Manage- ment Committee will review the RFQs and forward their recommenda- tions to Toth the City and County Commissions for certification of priority consideration in the disposition of the redevelopment parcels involving the participation of former property owners. (d) The City shall establish redevelopment parcels of at least one acre in size (or one-half block) consistent with expressed interest of the property owners to redevelop (based on RFQs). (e) Technical assistance utilizing funding provided by the Urban Initiatives Grant will be provided by the City and County staff and the OAB. This assistance will be available to former property owners and investment groups which contain a minimum of 50ro repre- sentation of former property owners. The technical assistance will be provided for the preparation of responses to RFQs and competitive Request For Proposals. -- A competitive Request For Proposals (RFP) will be developed and advertised within six months from the date of offer to purchase by Dade County, pursuant to the Miami City Charter, Section 53(c): Unified Devel- opment Projects; and Florida Statute 163.380: Disposal of Property in Community Redevelopment Areas. The selection of the developer will be according to the following priority ranking: (a) Former property owners for development parcels which encompass their former property; (b) Investment Groups composed of a minimum of 50`c' former property owners from the four -block area; (c) Community Based Organizations; -14- 93-98Q- d) ?esocns;ve oiac'< developers; �e) joint ventures Nhich include diacx develcoers; and Others. -- ; he selected aeve looer wi 11 be ^eau i red :o --er al i -ormer orooerty owners of the site being developed an eauiti oositicn in the develocment. 'his investment will be at least equal td she sale orice of the land when purchased by Jade County. A former prooerty owner may invest less if they so desire. Suggested Policy =3, 4SG The actual taking of any property through the power of eminent domain will be prohibited for a oeriod of 18 .months unless it is based upon voluntary agreements between the County and the property owner in the Overtown Transit Redevelopment Area. After 18 months, the power of eminent domain may be used if it can be demonstrated that the property owner has failed to voluntarily comply with County requirements to eliminate the blighted condi- tions or has failed to proceed in an effective manner after notification to remove the property of such blighted conditions. Such action will not, however, negate the property owner's residual right to invest in any development which occurs, in whole or in part, on his property up to the value of the prop- erty (or part of the property) at the time of public acquisition. Proposed Public Policies and Procedures 0,Q ) All property in the project area shall be acquired by the County. Property owners will be reimbursed for property costs and relocation expenses in accordance with aoplicable Federal and local guidelines. -- If property owners elect not to, or are unable to, develop, a developer will be selected by the City and County Commissioners. The developer shall be required to offer former property owners an equity position in the devel- opment. The equity position will be based on the value of the land sold by V. former property owner. Suggested Policy =a, "SG The County and the City seek :o assist orooerwy owners In the Overtown-ransit Redevelocment .area in exoancing :heir aeveloo- ment cacaoi'ity. -o :his end, the ^Zaun-y and the City 4ill encourage arivate cevelooers :o develoo joint proposals with ^ea prcoer:y :wners; -,r.viae tecnnica' .tucies re'at'na :c :ne TarKe: ana 'financial 'easibi'.ity of :ne area s Jrpan Jes;gn ?tan; ana .roviae :ecnnical assistance :o :ro;erty owners so as to assure _au1:y aar:ic;pat;on �Jy olack property :wners. 83-980, 4 4 Proposed Public Policies and Procedures (=a) -- It is anticipated that the development sites will be no less than one (1) acre in size and individual property owners shall be afforded the oppor- tunity to pool resources and form development groups, syndications, etc. -- Selected developer will have to accept certain contractual terms, i.e., inclusion of property owners as a joint developer or investor. -- Technical assistance utilizing funding provided by the Urban Initiatives Grant will be provided by the City and County staff and the OAB. This grant will be provided by the City and County staff and the OAB. This assistance will be available to former property owners and investment groups which con- tain a minimum of 50`C' representation of former property owners. The technical assistance will be provided for the preparation of responses to RFQs and competitive Request For Proposals. Suggested Policy #5, HSG Both the County and the City recognize the importance of utiliz- ing public resources to achieve public objectives. Therefore, it will be the stated policy of the County and the City in the use of public financial resources to use such funds so as to encourage black equity participation. Further, given the limited nature of such funds and their declining availability from the Federal Government, it shall be the stated policy to achieve max- imum leverage in the use of public resources such that they achieve the twin goals of eliminating blight and fostering black equity participation. The policy, therefore, permits the use of funds to facilitate development through the elimination of blight even in cases where local government does not take control of the land. Proposed Public Policies and Procedures (r5) -- Funds are currently available for land acquisition, including relocation benefits, and demolition. -- Land disposition to developers will be done in a fashion that would pro- vide development incentives, which may include, but is not limited, to, long term lease arrangements. -- Stated objectives included within the Southeast Overtown/Park West Rede- velopment Plan call for additional public financial support to the redevelop- ment area. -16- 83--9801 00 )VERTOwN 207__SVaJ 30ARv'n .���J� he City of Miami C3iimission, in complying with the Jroan 'lass 7ransoortation Administration's "JMTh; "Environmental impact Statement ;2:S), by Resolution Vo. 32-545 dated July 22, 1932, designated the Southeast Overtown/Park West Community Redevelopment Ad Hoc Committee as the official advisory board for the Urban initiatives Project, whose name subsequently changed to the Over - town Advisory Board (OAS). The Dade County Commission, in a similar fashion, by way of Resolution No. R-1153-82 dated September i, 1982, formally approved designation of the Overtown Advisory Board as the advisory body for the Overtown Urban Initia- tives Project. To date, the City of Miami has involved the OAS at the policy formulation level. Meetings were sponsored by the OAB and the project staff pursuant to the Intergovernmental Agreement which afforded meetings of the DAB and the property owners as well. Appendix "S" provides an abstract of the various meetings held to secure input from the citizenry. The following proposed changes were submitted by the OAB. Following each ?r000sed change is a response: A. Pr000sed Change "Property will be appraised at the highest and best use as specified in the Southeast Overtown/Park West Redeveeopment Plan which has peen approved py the City and County Commissions." es:onse T:^.is change was incluced in the .;une 23, 1983 revision. See :tam ',Io. 1. 3. Pr000sed Change :tem ,.C.. :e'ate :he wort minority end replace it ,vi:n black. ?es:)onse ;his change, too, was incorporated ;see .tam 'Io, S.C.,. 83-98( ?r!:=sea ^ance "Anv crcv'sion -or 3 right Of first ­_`usdi 'Cr oar.icioation cannot cC' uSeO oi''ert1J or i'idireft 'n t`e acDr3ised negotiation Gf -r4" lir1s`1 =ne -air 1ae-<e, v3,ue, -rov4:en ;� 3'y• :osconse According to the City of Miami Charter (pp. 4'.. a4.2 ), "There shall oe no sale, conveyance or disposition of any interest, including any leasehold, in real property, owned by the City, the departments of Off - Street Parking or the Downtown Development Authority, unless there has been a prior opportunity given to the public to compete as purchasers of said real property or any interest therein. There shall be public notice prior to any such sale, conveyance or disposition. . . , further, no right, title or interest shall rest in the purchaser of the above property unless the sale, conveyance, or disposition is made to the highest responsible bidder, as is determined by the City Commission or the Off -Street Parking Board, or the Downtown Development Authority Board of Directors." D. Proposed Chance "The owners' equity position shall not be subordinated to any construc- tion loan so that if the project should fail and the lenders foreclose, the owners still have their percentage ownership in the property." Response The risks inherent in real estate investments and developments must be shared by all parties involved. The Urban Initiatives Project is not in a position to ensure that the property owners' equity position is safeguarded against subordination. Essentially, this concern is beyond the City and County reach. If such can be arranged, it must be negoti- ated through the developer. Legal counseling contracted by those property owners who are pursuing participation in the redevelopment process will have to address this concern. E. Pr000sed Chance "Ensure that the former property owners are offered an equity position in the develooment. This will oe an amount up to the value of the land scld oy the :)rocerty owners or in an amount uo to the orooer:y owners' crocortionai snare of ,ne tenn current orooerty value, wnicnever is _realer." 'esconse ^is -assurance is Tanirested in the 7ackarounc s2C_icn of the Overtown _r:an :r':iatives D-o;ec: Mack :_-u'ty Participation ?lan, '011c4es, and -oceCures. .-ree :�articicat'.on J.tions Ni Je _-'Cried all ?ro.-er,.y owners: -I3- 83-950 as a �eveio�er.`nvestor: as a :articioant in in inVAst-nent grouo; and as an equity investor `n the oeveiopment constructed on one's `ormer--r,:oerty. -.cdi :`^nal';/, _ne or000sea ci zzosi" n gu igel ' nes Nil , insure this ^err s'mciy oecause any 3na ali selected develooers ;ra*.! agree tJ terms o= the disoosition guidelines as wel: as the final contract agreement. r F. Proposed Chance :on - the "Develop a mechanism to assure that whatever happens the people who sold their land at a certain price will get a shot at participating in whatever increased the value of the land or a mandatory participation in the devel- opment so that the developer has to include the former land owner. One such mechanism is, 'If a property was sold for $120.00, the property owner would receive $110.00 and there would be withheld a certain amount which automatically mandates participation because he still has equity in the land. Whenever the developer buys it, he has got to deal with the resid- ual equity."' Response To require withholding a portion of the sale of all the property in the Urban initiatives Project Area as consideration to ensure equity partic- ipation would be tantamount to a forced participation. Equity participa- tion has been ensured, without forcing participation, by the following: The Southeast Overtown/Park West Community Redevelopment Plan, a legally binding document accepted and adopted by the City of Miami Commission (by way of Resolution No. 82-755) addresses equity Participation. The County Commission, too, has approved the Rede- velopment plan (by way of Resolution NO. R-1677-82). - The Environmental 1meact Statement (EIS), a federal, legal binding document, first introduced equity participation to the project. Because of this, equity participation will be assured. - The intent of the proposed equity participation policy statement is to ensure black involvement, not only in the construction arena, but in the ownership of redeveloped :arce. I s. - property owners electing not to yet 'nvolved as developers will ce assured of equity participation via contrac:ural agreements oetween the selected develo,er,;s) ana :he Clty cf Miami. Oi _oosi ticn juice' ines to be =romu l catac by the y o- 'Aiacni wi 1 . _zssure equity :art',ci:ation as we1'. 9- ea-9S le APPENDIX A PREVIOUS DRAFTS OF THE PROPOSED EQUITY PARTICIPATION POLICIES 83-9so, iJ 0 OVSRTOWN JRBAN _ NITIATIVcS PROJECT V n.:LMu .. METROPOLITAN DADE COUNTY F I N A L DRAFT ;une23,1982 Overtown Urban Initiatives Project Black Ecuity Participation Plan Policies and Procedures The purpose of this paper is to describe the Dolicies and procedures to be used in implementing the Black Equity Participation Plan for the Overtown Urban Initiatives Project. BACKGROUND Metropolitan Dade County and the City of Miami are jointly sponsoring an urban iatives joint development project in conjunction with the Overtown METRORAIL station. This project is being funded in part with a grant from the Urban Mass Transportation Administration. The Project currently includes a four -block area immediately adjacent to the Overtown METRORAIL station with the planned addition of two blocks (see attached map). It should be noted that the City and County are also involved in redevelopment activities in the entire Park 'Jest area. The specific pro- cedures discussed in this paper apply only to the Overtown Project. The County, City and UMTA have a strong and continuing commitment to Black and minority participation in all phases of the Project. To achieve this, a program has been developed to ensure equity participation in development as well as Black and minority participation in construction and employment. THE BLACK EQUITY PARTICIPATION PLAN The concept of equity participation involves the opportunity for all current property owners in the Project area to invest in and share in the profits from the redevelopment activities. A particular initiative in this project is to stimulate Black equity investment and a 50% Black Equity Investment Goal has been established. The following is a general outline of the procedures that will be used to achieve this objective: 1. All property in the project area shall be acquired by the County. Property owners will be reimbursed for property costs and reloca- tion expenses in accordance with applicable Federal and local guidelines. Property will be aooraised at the highest and best use as specified in the Park 'West/OvertownRedevelopment' Plan which has been approved by the City and County ommissions. 2. Interested former property owners will be given the right of first _ refusal to develop the project area where their property was located. This development shall be in accordance with the Safety Period Time- table and Redevelopment Plan prepared by the County and City in conjunction with the Overtown Advisory Board and Project Management Committee. It is anticipated that the development sites will be no REVISED: 6/23/83 A-1 83-980, 10 10 Overtown Urban initiatives Project Page 2 less than one (1) acre in size and individual orcoerty owners shall be afforded the opportunity tc pool resources and form develooment grcuos, syndications, etc. 3. interested former property owners will be able to invest all or a part of the cash proceeds from the sale of their property in this develop- ment. Other assets may also be invested. a. Technical assistance in these investment opportunities will be provided to interested former property owners. This will include marketing analysis and studies, aid in setting up development groups, and the possible use of specialized consultants for all project activities. 5. If the property owners are not interested or/are unable to develop the project, then a competitive Request for Proposals will be developed and advertised. The selection of the developer will be done according to the following priority ranking: a. Community based organizations; b. Responsive Black developers; and c. Other responsive developers who demonstrate a willingness to joint venture with black developers. The selected developer will be required to offer former property owners an equity position in the development. This equity position will be based on the value of the land sold by the former property owner. 6. The City has primary responsibility for working with the developer and developing a land disposition plan. It is anticipated that the land will be made available to developers in the form of a tong term lease. The amount of the lease will be based on the financial viability of the development as established through pro forma financial statements and the resultant need to provide additional development incentives. Lease revenues will be used for improved transit service in the area. OTHER PROJECT ACTIVITIES AND GOALS In addition to the Black Equtity Participation Plan discussed above, the City and County are committed to minority and Black participation in all aspects of the project. To achieve this, goals are being established in the following areas for all developers in the project area: o contracting and construction aoals; o construction hiring goals; o permanent hiring goals; and o retail space ownership goals Note: Text underlining indicates changes to the previous draft. REVISED: 6/23/83 A-2 83-9S0' W y UU U� 9 th 6 !h 6 th ST ,11�I1Ili 5 th I ST REDEVELOPMENT AREA U OVERTOWN TRANSIT STATION \tt a Figure 3. OV E RTOWN STATION -- RMWWI DAE COUNTY EMDEVELOPMEWT AREA CITY OF MIAMI O so 100 REVISED: 6/23/83 q_3 83-950