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HomeMy WebLinkAboutsummary formAGENDA ITEM SUMMARY FORM FILE ID: OS — o Do L�.o Date: 1/11/2005 Requesting Department: Community Development Commission Meeting Date: 2/10/2005 District Impacted: Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other Subject: Reverting Parcels of Land from GAME to City of Miami Purpose of Item: The purpose of this item is to revert certain parcels of land previously conveyed to BAME Development Corporation of South Florida, Inc. to the City of Miami. Background Information: See attached Budget Impact Analysis Is this item related to revenue? Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: CIP Project No: Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: CIP If using or receiving capital funds Grants Purchasin Chie Final Approvals (SIGN AND DATE) Budget Risk Managem Dept. Directo City Manager Page 1 of 1 Reverting Parcels of Land from BAME Development Corporation of South Florida, Inc to the City of Miami Background Information: • On May 1, 1995, the City Commission adopted Resolution No. 95-303 allocated BAME Development Corporation of South Florida, Inc. ("BAME") the amount of $125,000 of Home Investment Partnership Program ("HOME") funds for the purpose of financing housing development of one hundred and two new homeownership housing units • Resolution No. 96-320 adopted by the City Commission on May 23, 1996, awarded BAME the amount of $800,000 of HOME/SHIP funds for the purpose of providing construction financing and permanent second mortgage financing to prospective homebuyers for a 40 unit housing project which was modified from the original one hundred and two (102) housing units • On July 21, 1998, the City Commission adopted Resolution No. 98-779 directed the City Manager to execute a tri- party agreement with BAME and the Southeast Overtown/Park West Community Redevelopment Agency and funded said agency with a total of $538,040 for the development of the New Hope Overtown project • Pursuant to Resolution No. 00-953, passed and adopted by the City Commission on October 26, 2000 accepted the plat entitled New Hope Overtown • On October 11,2002, the Housing and Commercial Loan Committee approved the amount of $538,040 to BAME, extended the Contract through December 31, 2003 and reduced the affordable units from forty (40) to twenty one (21) single family homes with the remaining houses to be sold at market rate • On December 14, 2000, the City Commission adopted Resolution No. 00- 1092 conveying certain vacant City -owned parcels of land, to BAME Development Corporation of South Florida, Inc. for the development of the New Hope/Overtown Housing Project; this was contingent upon construction completion and the sale of forty new single family homes within twenty four months from the date the resolution was adopted • Resolution No. 01-377 passed and adopted on April 26, 2001 certified that the forty unit project was consistent with the City of Miami's Comprehensive Neighborhood Plan and Five Year Consolidated Plan and all applicable affordable housing regulations • Pursuant to Resolution No. 03-712 adopted on June 24, 2003, the City Commission granted said agency with an extension to December 31, 2004, to complete construction released the City and the Southeast Overtown/Park West Community Redevelopment Agency form the obligation to provide marketing for said project and held BAME solely responsible for marketing the forty (40) unit housing project • Said project construction ceased as of December 2003 • In January 2004, Cazo Construction, BAME"S general contractor, requested payment for work on nine (9) homes, and informed BAME that construction would not resume until payment was received; at that time, Department of Community Development informed BAME that prior to funds disbursement, issues related to the Major Use Special Permit (MUSP) expiration date and securing the conventional financing for the project had to be resolved • As of December 31, 2004 said agency defaulted in its loan obligations in the total amount of $1,462,455.57 under its Home Investment Partnerships Program Loan Agreement with the City of Miami, dated September 3, 2003,and other loan documents executed in connection therewith with regard to BAME's New Hope/Overtown project • Said agency was given sufficient opportunities, funding assistance and contract extensions to meet deadlines and cost expenditures but still failed to meet their contractual obligations with the City of Miami