HomeMy WebLinkAboutItem #02 - Discussion ItemINTZR•OF'F,C--,
Richard L. Fosmoen
City Manager
Dena Spillman, Director
Department of Community Development
January 15, 1981
Dade County HUD request for
Capital Contribution for Section 8
Housing Developments
On May 8, 1980, by Resolution No. 80-344, the City Commission authorized the sale
of General Obligation Housing Bonds in the amount of S1,400,000, with the proceeds
to be used as a capital contribution to assist Dade County in the development
of Section 8 housing projects designated Dade 8-1 (Wynwood), Dade 8-3 (Coconut
Grove), Dade 8-11 (Little Havana), and Dade 8-12 (Town Park).
Attached please find a memorandum from Mel Adams, dated January 9, 1981, requesting
an additional S205,000 in capital contributions from the City of Miami needed
to acquire these "turnkey" projects by the County. As explained in Mel's memo,
inflation in interest and construction costs has been the major problem.
In order to move forward with the development of these projects, it appears
that an additional $205,000 in capital contributions from the City to Dade
County is necessary.
However, it hould he the City's position that in the future no additional
capital contributions will be provided to Dade County in order to develop these
projects.
This is one of several housing related items that will be discussed at the
Housing Workshop scheduled for the City Commission on•Tuesday, February 10,
1981 at 1:30 p.m,
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1..
MEMORANDUM
107.07_ 17 A
TO Mrs. Dena Spillman, Director
Cit' of i•Iiam" Comri,,unity Develop-
ment Pro,— ra!
FROM Melvin J . 21,lri:
Director, ;i1T1
I c--C�
DATE January 9, 1981
SUBJECT
Last srin.- t}le Ci`_;; Commission authorized the use of City housing -
bond fun}.� fog' a c_rvital contribution of $1,400,000 to help finance
40 units of fanil; ; ou-in ; in W' ,redwood, 45 units of family housing;
in Overto.in, 75 senior citizen units in Little Havana, and 65 senior
citizen units in Cocon,_It Grove. Each of these projects io being
financed under the Section 3 program, For the rea:Jons described be-
low, an acriitional 205,000 of capital contributions is needed to
permit thcz._ pro, • -t.s to be arried out.
On Septe!..ber 24, 1?80, bona: i%,ere :gold to =inanco the Wyndwood and
Little };avana pro,=ecto. This involved a capital contribution by
the City of w753,491 which was a123,491 above our estimated need
at t}le t1i,:e th,. Co,7-.-i--sion authorized the c?1-_'ita1 cci,tribution la3t
sprint-. The incrcas-� resalted fI'O!: the nee;,' to incre?:'e t}1' de—
veloncrsl , rices bF;,c_1uzc of si?12 .1ir1;, in' Crt' coat. n" in., lation-
ary pr UY'C i tl1ar, occurre dUrli the 10-mcCnth roricD(i alnce the :e-
velope r1 pri._•':� ;:ire prr'': i"In -i ;y' : et , 7, —
con._,tr'uc*c on an i. sc}: I, Ccn nex te!:-,1,1 o I,
However, because o: le;,1 rrotie;ro, c,snotr 1,z^ti n ha,- not t ;rted on
the Little ,ia'✓.!1:. its, T?;e le 11 rroLler,3 11-,ave just been Corrected
and the do eloi (,r Golan.-, to ;,t .r`, CC! St on `�}le Little :Tavana
site within the next :Q 4-
one yeay.
The develcp(:�r of the Little Havan:I ,ite :;ubinitted his price for the
project based on .I con tract ion ,;tart of November 3 , lit?0. In vie'..:
Of he ���11:'"�'_I( t;it 1 co,4; inflation that h-z3 ,occurred c, i!,C^ then
the de•. e i ni c,, 1 1 1;r an" .., e } ,3� , 7 f
1: • 11.i 1 JC �+.^I'�_f't.. �O a th2':'e "t'[lt iI2—
CTF':_131_'1-",CC)�3 In :11(jitio!15 with the wild fluctuation in interest
rates, 11L2 C "I rI IC) I A G 1 t0 his C LlmCost foI' CCnstruction
which 'r7 }3'I� e(ai -,ri a I'Zt.t_' o: 2P f` .`1, (:t'111; . }}` '.nC: t}1e �'CL:11t:; have
agreed to set intore0t. :.00t, at all e:,t1C".'iLi_(] rate of ," -11-, per cent or
actual cost :Turin: - a construction rerir i not to exceed 12 months,
whichever is 10s.l. The developer' }i:1s a—, reed with us to an increa.,e
in hi., con -,-,tot price f2'cr.; ti2,4 5,000 to a maximum. w,',5`0,000.
To finance these increased cost.;, need an additional capital con-
tribution of rIn Ir:oi.:i t not to ex,,eed $? 1r,0OU.