HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO:
FROM :
The Honorable Mayor and
Members of the City Commission
Chief Administrator/City Manager
MAY 1 7 2004
DATE : FILE :
Exemption to Section 18-182(a)(3) for
SUBJECT : Sale of the City -owned Property
Located at 1390 NW 24th Avenue
Miami, Florida to Allapattah
REFERENCES ; Community Action, Inc.
ENCLOSURES: Resolution
RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution with a
minimum of 4/5 approval, after presentation by the City Manager that such vote is in the best
interest for the City, that Allapattah Community Action, Inc., a Florida Not -For -Profit
Corporation ("Purchaser/Developer") receive an exemption to Section 18-182(a)(3), of the City
of Miami Code, which requires a purchaser of City -owned property to make annual payments in
the amount of taxes that the City of Miami would be entitled to receive from the Property based
on fair market value should the Property become immune or exempt from payment of ad
valorem taxes, following their acquisition of the City -owned property located at 1390 NW 24th
Avenue, Miami, Florida (the "Property").
BACKGROUND
The City of Miami has a severe shortage of affordable housing for the elderly, Section 29B of
the City of Miami Charter exempts affordable housing developments from the competitive
bidding requirements. In an effort to promote the development of new affordable housing in the
City, the City Administration recommended, in a companion resolution, the sale of the Property
to Purchaser on the condition that the Property shall only be used to provide elderly housing for
individuals and/or family within the economic affordability range of very low, low and/or
moderate income families and/or individuals, based on criteria established by federal and/or state
law.
On February 25, 2003, the City Commission adopted Motion 03-147 instructing the
administration to review and make a recommendation regarding the Property for designation and
proposed future sale to Allapattah Community Action, Inc., a Florida not -for -profit Corporation
("Purchaser/Developer") for the development of elderly affordable housing ("Facility"). On
March 12, 2003, the City of Miami received a letter from Purchaser expressing an interest in the
conveyance of the City -owned Property for the development of 64 elderly housing units. The
Purchaser/Developer has since submitted preliminary site plans and has indicated their intention
to increase the development to a maximum of 80 elderly housing units.
The Property is approximately 1.6 acres, sits vacant, represents a maintenance cost and liability
to the City, and currently does not generate ad valorem taxes. However, pursuant to Section 18-
182(a)(3), City of Miami Code, the City Manager is authorized to sell any surplus property,
provided that, "the deed of conveyance for such property shall contain a provision which
requires that in the event the property is ever immune or exempt from the payment of ad valorem
taxes, the grantee, or any of the grantee's assigns, heirs, or successors, shall pay to the city an
annual payment which shall be equal to what the city would have received as ad valorem taxes
based on the valuation method employed by the county property appraiser pursuant to Florida
Statutes Chapter 193, as amended."
Furthermore, pursuant to Section 18-182(c), City of Miami Code, the City Commission may
declare an exemption from the restriction contained in Section 18-182(a)(3), and declare it
inapplicable by resolution provided that the City Manager has made a written finding that it is in
the best interest of the City, which findings must be ratified by an affirmative vote of 4/5 of the
Commission after a properly advertised public hearing.
Allapattah Community Action, Inc., a Florida not -for -profit Corporation, has notified the City
that it intends to apply for a Section 202 loan from the U.S. Department of Housing and Urban
Development (HUD) to fund the affordable elderly housing development. In correspondence
dated April 20, 2004, the HUD has posed an objection to the City's requirement for payment of
taxes, as it conflicts with the HUD Section 202 Program requirement that the non-profit obtain
exemption from property taxes that could place additional financial obligation in the form of
increased operating expenses.
Therefore, the City Manager finds that it is in the best interest of the City to provide an
exemption to Section 18-182(a)(3), City of Miami Code, and waive the requirement for
Allapattah Community Action, Inc., a Florida not -for -profit corporation to make annual payment
equal to what the City would have received as ad valorem taxes associated with the property
located at 1390 NW 24th Avenue, Miami, Florida.
FINANCIAL IMPACT:
There s no financial impact to the general fund, as the Property is currently tax-exempt.
JA/LMH/it� /M CC Tax Waiver - 1390 NW 24 Avenue,doc