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HomeMy WebLinkAboutEXHIBIT 1EXHIBIT A Property Description Property Folio No. 01-3114-043-0240 Property Address: 1371 W, 61 Street Legal Description: Orchard Villa Ext PB 17-55 Lot 37 Blk 1 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Pedro G. Hernandez DATE: July 15, 2009 FILE: City Manager SUBJECT: Miami's River of Life Findings and Recommendations nsah, Director FROM:*Department of Community Development REFERENCES ENCLOSURES. In accordance with Section 18-85 of the Code of the City of Miami, as amended (the "City Code"), the Director of the Department of Community Development (the "Department") of the City of Miami (the "City") for the reasons set forth below hereby finds and recommends to the City Manager that competitive negotiation methods are neither practicable nor advantageous for obtaining the services for supportive housing (a transitional independent living facility) for female young adults transferring out of Florida's foster care systems (including at -risk dependency and delinquency care systems) for development, management and use (collectively the "Services") of the City -owned six unit residential building located at 1371 Northwest 61St Street, Miami, Florida (the "Property" as defined below), and requests the City Manager to recommend to the City Commission that the recommendations and findings be adopted, and that the City enter into a Safe Harbor Management Agreement for the Services at the Property with Miami's River of Life, Inc. , a Florida not-for-profit corporation . Background. Findings and Recommendations: Pursuant to Resolution No. 04-0271 adopted on April 22, 2004 (attached and incorporated hereby as Composite Exhibit "A"), the Miami City Commission authorized, inter alia, the allocation in an amount not to exceed one million, eight hundred thousand dollars ($1,800,000) for land acquisition for the Model City Home Ownership Zone Pilot Project from funds previously designated for Model City infrastructure improvements, in Fiscal Year 2003 and Fiscal Year 2004 allocations of Homeland Defense/Neighborhood Improvements Improvement Bond proceeds conditioned upon favorable decision of Bond Counsel (attached and incorporated hereby as part of Composite Exhibit "A"). In conjunction with Resolution No. 04-0271, such determination by Bond Counsel also provided conditions for land acquisitions and concluded, inter glia, that the District 5 "Quality of Life" designation for Homeland Defense/Neighborhood Improvement Bond proceeds could also be used, in order for land acquisitions to comply with the required rules and regulations of the Internal Revenue Code of 1986, as amended (collectively, the "Internal Revenue Code") and with the related City requirements for the Homeland Defense/Neighborhood Capital Improvements Bond Program. On September 23, 2004, pursuant to the authorization of Resolution No. 04-0271, the Model City Trust acquired for one hundred and sixty thousand, seven hundred and fifty- eight dollars and twenty-eight cents ($160,758.28) the multifamily rental property located at 1371 Northwest 615t Street, Miami, Florida (the "Property") as part of the Model City Home Ownership Zone Pilot Project. On March 10, 2008, the City of Miami ("City") issued a request for proposals ("RFP"), for non-profit entities to acquire the City -owned Property, for the provision of transitional housing for youth transitioning out of Florida's foster care systems, and Miami's River of Life, Inc. ("MRL") submitted the only response to the RFP, and that response met the minimum RFP threshold requirements. MRL is a Florida and federal not for profit organization which for the past fourteen (14) years has committed its resources to the care, protection, and progress of thousands of youth in the State of Florida's Department of Juvenile Justice, Department of Children and Families and other child protection systems. MRL has provided transitional living services within the City and the Miami -Dade County area for 16 years. Its programs include career, spiritual, intellectual, physical, emotional, educational, and social development skills (see attached proposal and other information from MRL as Composite Exhibit B). After review by an Evaluation Committee comprised of a resident of the Liberty City area, a representative of the Liberty City Community Revitalization Trust, and an employee of the City of Miami Department of Community Development, the City Commission pursuant to Resolution No. 08-0253, adopted May 8, 2008 ("Resolution No. 08-0253"), decided to accept the MRL proposal, with the intent to convey the Property to MRL. Notwithstanding the above, (i) in accordance with the Internal Revenue Code guidelines applicable to agreements involving governmental units and uses of bond -financed facilities by a not-for-profit organization with tax-exempt status under Internal Revenue Code Section 501(c)(3), and (ii) in consideration of the ongoing Homeland Defense/Neighborhood Capital Improvements Bond Program and potential future City needs, the City has determined to retain the Property and to enter into a Safe Harbor Management Agreement for the Property with MRL, rather than to convey the Property. The development, management, and use of the Property by MRL will be subject to the following continuing compliance covenants, among others necessary to comply with the Homeland Defense/Neighborhood Capital Improvements Bond Program, to be included in the Safe Harbor Management Agreement: (i) the Property must be developed, managed, and used for supportive housing for female young adults transferring out of Florida's foster care system (including at -risk dependency and delinquency care systems); (ii) priority must be given to young adults from the Liberty City area; (iii) MRL must retain its State of Florida and Federal not-for-profit status throughout the initial term of the Safe Harbor Management Agreement and any renewals thereof; (iv) the initial term shall be for five (5) years, with up to two (2) options to renew for five (5) years each term; (v) neither the City nor MRL shall pay or receive from each other any compensation for the development, management and/or use of the Property; (vi) the City must approve in writing in advance any change in development, management and/or use of the Property; and (vii) MRL's rights to develop, manage and use the Property will terminate and the rights to develop, manage, and use the Property shall revert to the City in the event the Property ceases to be developed, managed and/or used for its intended purpose. The proposed MRL "Independent & Transitional Living" program will serve young adult females who are in need of transitional living on an average of 3 to 9 months, with preference to be given to young female adults from the Liberty City area. MRL is in good standing with the City. The Director of the Department recommends to the Administration that it is in the best interests of the City to waive competitive bidding and to enter into a Safe Harbor Management Agreement, with continuing compliance conditions and provisions for the Property, to MRL for the development, management and use of the Property for supportive housing (a transitional independent living facility) for female young adults transferring out of Florida's foster care systems (including at -risk dependency and delinquency care systems), with the further intention to convey the Property to MRL once the IRS bond compliance period has ended, but with continuing public purpose covenants to run with the land. Should you or anyone else have any questions regarding the proposed Safe Harbor Management Agreement for the Property, please contact me at 305-416-1978.