HomeMy WebLinkAboutSummary AgrmtEXECUTIVE SUMMARY
SETTLEMENT AGREEMENT BY AND BETWEEN SAWYER'S
WALK, LTD. ("SAWYER'S WALK"), POINCIANA VILLAGE AND MIAMI,
LTD. ("POINCIANA"), SOUTHEAST/OVERTOWN PARKWEST
REDEVELOPMENT AGENCY ("CRA") AND THE
CITY OF MIAMI ("CITY").
PURPOSE: Settle existing litigation between the CRA/City and Poinciana
regarding the Poinciana Village project (the "Poinciana Litigation") and settle
existing litigation between CRA/City and Sawyer's Walk regarding the
Sawyer's Walk project (the "Sawyer's Walk Litigation") and promote prompt
development of the balance of the Poinciana Village project and the Sawyer's
Walk project.
PURPOSED DEVELOPMENT: The proposed development, which will be
constructed in phases on the property (the "Property") which shall be made up
of approximately 1,050 consisting of apartments, townhouses, lofts, live/work
units (i.e., commercial units which are bundled with a residential unit) (the
"Live/Work Units") (collectively, the "Residential Units"), which Residential
Units will be constructed in mid -rise structures and high-rise structures and
approximately seventy-five thousand (75,000) square feet of retail and office
space (the "Project"). The price range for the Residential Units, excluding the
live/work units, shall be between $130,000.00 and $300,000.00.
TIME FRAME: Commence construction promptly after obtaining the MUSP
approval (estimated to occur on or before April 15, 2006) and complete
construction within five (5) years from the date of the Settlement Agreement.
DEVELOPER: Although Sawyer's Walk, Ltd., is part of the transaction, 95% of
the partnership interest in Sawyer's Walk, Ltd. will be transferred to an entity
owned or controlled by Crosswinds at Poinciana, LLC. A 5% interest shall be
retained by the existing partners of Sawyer's Walk, Ltd.
RESTATED LEASE: CRA and Developer will enter into an amended and
restated lease (the "Lease") with respect to the undeveloped portion of
Poinciana Project and the Sawyer's Walk Project. The Lease will not be
executed until the Executive Director is satisfied that financing of the first
phase of the Project is in place, the Developer has adequate equity for the
Project and the Executive Director has approved the plans and specifications
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEM RE1 ON I -a.7-0
for Phase I, compliance with minority participation requirements and MUSP
approval has been obtained.
DEVELOPMENT APPROVAL: Preliminary Development Plans are attached
to the Settlement Agreement. Within one hundred twenty (120) days from the
Effective Date of the Settlement Agreement, the Developer is required to
provide detailed development plans to the Executive Director of the CRA for
approval, which will include a block -by -block breakdown of the project, a
phasing plan for the project, a project schedule, and a breakdown of the
Affordable Units and the Subsidized Units to be included in each phase of the
Project which shall include a breakdown of the square footage and unit mix of
the Affordable Units and the Subsidized Units. The Developer will be required
to develop the Property in accordance with the detailed Development Plan as
approved by the Executive Director and the MUSP.
MUSP APPROVAL: The Developer has ninety (90) days from end of the
Inspection Period, to file a MUSP application with the City of Miami. The
application for MUSP approval must be consistent with the detailed
Development Plan approved by the Executive Director. The Developer shall
have until March 15, 2006 to obtain MUSP approval from the City.
AFFORDABLE HOUSING: The Developer shall be required to sell no less
than 20% of the residential units in each phase to qualified buyers whose gross
income is between 80.01% and 120% of the Miami -Dade County mean income
(the "Affordable Housing Requirement"). First preference shall be given to
Overtown and former Overtown residents followed by City residents. The
minimum penalty for non-compliance is Twenty Thousand and No/00 Dollars
($20,000.00) per unit.
SUBSIDIZED HOUSING: The Developer is required to convey a total of fifty
(50) units of the Affordable Units to the CRA, or its designee (the "Subsidized
Units"). The CRA, or its designee, shall sell the Subsidized Units to purchasers
whose gross income is not greater than eight percent (80%) of the Miami -Dade
County median income. First preference shall be given to Overtown and former
Overtown residents followed by City residents.
FORMER OVERTOWN RESIDENTS: The Developer is required to use its best
efforts to sell 20% of the residential units to former Overtown residents or their
family members. The Developer will be required to obtain written certification
from community based organizations that the potential buyer is a former
Overtown resident or a family member of a former Overtown resident. The
Developer may sell the Residential Unit to a former Overtown resident or a
family member of a former Overtown resident at market rates. Any sale of a
Residential Unit to a former Overtown resident or a family member of a former
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Overtown resident shall qualify towards the Affordable Housing Requirement,
notwithstanding their income level.
MINORITY PARTICIPATION: A 51% minority participation requirement has
been established with respect to construction and property management
aspects of the Project (B28/F8/H15). A 25% minority/female participation
requirement has been established with respect to the design aspects of the
Project (B10/F5/H10). A 20% African American participation requirements has
been established with respect to Developer's sales and marketing staff. The
requirements are mandatory and penalties apply for failure to meet the
requirements.
FIRST SOURCE HIRING AGREEMENT: The Developer will be required to
enter into a First Source Hiring Agreement requiring priority be given first to
Overtown residents and then to residents of the City.
EMPLOYMENT TRAINING PROGRAM: Developer, in coordination with the
South Florida Work Force or such similar job creation and training program,
shall participate in existing programs or establish a "Skills Training and
Employment Program" which shall provide for training of construction
personnel for residents in the CRA Redevelopment Area and in the City and
property management training for residents in the CRA Redevelopment Area
and in the City.
COUNTY REVERTER LITIGATION: The Developer bears all risk associated
with the County Reverter Litigation which requires three of the blocks included
in this transaction to be developed prior to August 1, 2007, or title reverts to
Miami -Dade County. The Developer is required to develop these blocks as part
of Phase I of the Project.
TAX INCREMENT FUNDS: The CRA has agreed to pay to the Developer 100%
of the tax increment funds generated from the Project through September 30,
2013, which funds are to be used in accordance with the requirements of
applicable law governing the use of TIF Funds. The obligation of the CRA to
make the TIF payments will be junior and subordinate to the obligations of the
CRA to pay debt service with respect to the $11,500,000.00 City of Miami,
Florida, Community Redevelopment Revenue Bonds, Series 1990, the Grand
Central Obligations, and junior and subordinate to the obligations of the CRA
to pay debt service on any bonds issued in the future by the CRA. The TIF
Funds will not be made available unless the City Attorney concludes that the
proposed use is a legally permissible use of tax increment funds.
CHALLENGES: The Developer bears all risks associated with any challenges
with in respect to the Settlement Agreement, the Lease, and the proposed sale
if reversionary interests and releases the City/CRA from liability. If a
Challenge is filed, either party may terminate the Agreement.
COUNTY APPROVAL: The Developer is subject to approval by the County as
required under the Interlocal Agreement and the County Reverter Settlement,
which approval is to be obtained within sixty (60) days after the end of the
Inspection Period or either party may terminate.
STANDSTILL: Existing Poinciana Litigation and Sawyer's Walk Litigation are
abated until Settlement is consummated or Settlement Agreement terminates
with an outside date of April 30, 2006. If the Settlement Agreement is
terminated the CRA/City have option of resolving Poinciana Litigation and
Sawyer's Walk Litigation by payment of $6,500,000.00 to Poinciana and
Sawyer's Walk or continuing the litigation.
OUTSIDE DATE: If the Developer has not obtained MUSP approval and
satisfied all of the requirements for the execution of the Amended Lease by
April 30, 2006, the CRA/City may elect to terminate the Agreement.
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