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HomeMy WebLinkAboutExhibitMODEL CITY COMMUNITY REVITALIZATION DISTRICT TRUST ANNUAL PLAN (FY 2005/2006) EXECUTIVE SUMMARY As the Model City Community Revitalization District Trust ("Model City Trust") enters its fourth budget year, we are pleased to note that over $2 Million in grants and awards have been generated by and for the Model City Trust. Those funds have come from the U.S. Environmental Protection Agency (EPA), Florida Department of Environmental Protection (DEP) and the U.S. Department of Housing and Urban Development (HUD). Some of the highlights of the Trust's accomplishments for Fiscal Year 2005 include the following: 1. Received an award valued at $553,000 from the Florida Department of Environmental Protection to remediate three (3) Brownfields sites along Martin Luther King Boulevard. 2. Initiated a "resident intervention model" that combines the efforts of several local, community agencies (Martin Luther King Economic Development Corporation (MLK - EDC), Veterans Employment Transition Services (VETS), Neighbors and Neighbors Association (NANA), Church of the Open Door, Low Income Families Fighting Together (LIFTT), and the Miami Workers Center to organize residents of a multi -family rental dwelling to assume ownership of the building. 3. Applied for (notice expected June 2005) two (2) additional Brownfields grants from the U.S. Environmental Protection Agency (total value of $400,000) The Trust's objectives for Fiscal Year 2006 include the following: 1. Complete the first sets of live -work units to allow smaller scale economic development projects to commence. 2. Complete environmental remediation work to commence monitoring phase. 3. Commence larger development projects, including multi -family rental on the corner of 62nd Street and 17th Avenue and other multi- family lots, pun 440r0 //cio 1 BACKGROUND The City of Miami's Five -Year Consolidated Plan (1999-2004) sought to redefine the City's use of its federal entitlement dollars, particularly with regard to the development of quality housing opportunities, quality of life enhancements and economic revitalization. After more than twenty years of annual federal entitlements, the City of Miami was found to be the fourth poorest city in the United States based upon the results of the 1990 Census. The condition was even more severe as of the 2000 Census which recognized the City of Miami as the poorest city in the nation, and the need for revitalization has become even more urgent. The Five Year Consolidated Plan identified seven Community Revitalization Districts in depressed neighborhoods throughout the City of Miami. The designated Districts each have the following characteristics: • income levels below 50% of the median average in Miami -Dade County; • a homeownership rate under 20%; and The Community Revitalization Districts included the following neighborhoods: Allapattah, Edison Little River/Little Haiti, Little Havana, Model City, Overtown, West Coconut Grove and Wynwood. Two principal factors influenced the City Commission's designation of Model City as the pilot project for the implementation of the Community Revitalization District concept. First, a critical mass of City -owned and other government owned property in the Model City area. Additionally, the Model City neighborhood had been the scene of strong protests from Section 8 residents who were living in unsanitary and unsafe housing. All Section 8 Mod -Rehab structures were subsequently demolished and the residents were relocated. The City gave assurances to the relocated Section 8 clients that they would be given first priority to return to the neighborhood as homeowners when the district was revitalized and new homes were built. The area is located at the contiguous area bounded by NW 71st Street to the north; State Road 112 to the south; 1-95 (Interstate 95) to the east; and NW 17th Avenue to the west and the contiguous area of NW 17th to 19th Avenues between NW 58th Street and State Road 112. Leveraging the experience of municipalities throughout this country who had achieved success in similar revitalization initiatives, the City Commission approved a public -private partnership as the entity charged with the oversight and facilitation of the Model City Homeownership Pilot Projects and other revitalization efforts to be undertaken in the District. With Ordinance No. 12082, adopted July 10, 2001, the City Commission established the Model City Community Revitalization District Trust ("Trust") was created and established. 2 The City Commission recognized that the right slate of individuals from the private sector would possess the skill sets and the volume of experiences to effectively facilitate projects of the size and complexity of the Model City Homeownership Zone Pilot Project. The partnership between the public and private sectors promises to build a thriving, multi -income community that not only improves the quality of life for city residents, but also builds the tax base for the city as a whole by providing a community that is attractive to middle and upper income residents. Ultimately, one key element to realize a lower tax rate citywide becomes more viable. The Ordinance called for the creation of a Board of Directors that consists of six individuals representing the following disciplines: residential construction, development architecture and engineering, planning, zoning and land use law, economic development, historic preservation and restoration, administration, fiscal management, and community involvement. Six members are appointed by the City Manager and confirmed by the City Commission. One member is a Public Advocate appointed by the District Commissioner. N. Patrick Range, Sr. (Chair): Mr. Range is a businessman and local resident and has been the co-owner and manager of Range Funeral Home for the past 42 years. Norman C. Powell (Vice -Chair): Appointed by the City Manager and confirmed by the City Commission in May 2003, Mr. Powell is an attorney specializing in municipal law and owner of a title company. Father J. Kenneth Major: Priest of Church of the Incarnation, which is located in the Model City Homeownership Zone Project area. Father Major is also a founding member of the Economic Opportunity Family Health Center. Three new Board members have been appointed in Fiscal Year 2005. They are as follows: Keith Bell: An Assistant Vice President of Regions Bank, who is responsible for the banks location in Model City, was appointed at the Model City Trust meeting on March 10, 2005. A Morehouse graduate and decorated Navy veteran who served during Desert Storm, Mr. Bell has honed his financial acumen through his combined tenure at major financial institutions such as Union Planters Bank (the predecessor of Regions Bank), Morgan Stanley, and Great Western Bank. 3 Henry Crespo: President of URGENT, Inc. and the Miami -Dade County Black Democratic Caucus. Mr. Crespo was appointed by Commissioner Jeffery L. Allen on February 10, 2005. Grady Muhammad: An entrepreneur who has made a business of providing technical assistance for small and disadvantaged business in Miami - Dade County, Mr. Muhammad has also established himself as a community organizer. With the appointment of Jeffery L. Allen as the District 5 Commissioner and the reassignment of Rev. Vincent F. Mitchell to another jurisdiction, the Public Advocate position was vacant as well: Commissioner Allen appointed Roy Hardemon to serve as Public Advocate: Roy Hardemon: Mr. Hardemon is a lifelong resident of Model City who has demonstrated a passion for preserving his community and advancing the economic development purposes he thinks best. FISCAL YEAR 2005 IN REVIEW HOUSING DEVELOPMENT The new home construction commenced in February 2005 with three developers— Mega Construction Team, Inc., Tricia/Dean Partnership, and Palmetto Homes of South Florida, Inc. —who were identified early in 2004. The developers are charged with the construction of 16 homes. Additionally, there are four rehabs that have been completed. Additionally, the Trust has initiated rehabilitation on a multi -family building that was acquired in January 2004. With the number of lots remaining in private hands, the initial proposal of broad demolition and new construction seemed financially impractical. With the Commission's concern about completing construction on some houses, the Board determined that additional acquisitions must be limited to strategic acquisitions adjacent to current inventory properties. BROWNFIELDS REMEDIATION The Model City Trust's FY 2005 Annual Plan identified the remediation of four brownfields sites on the perimeter of the Model City Homeownership Zone (three on Martin Luther King Boulevard and one on 54th Street) as priorities. 4 e Trust was successful in securing Each of the sites is a former gas station. Thf each of the sites from the U S. funding in some form or fashion for remediation Environmental Protection Agency (EPA) or the Florida Department awards of Environmental Protection (DEP). The total value thesegrants is projected at $853,000. On average, the Trust has generated over $200,0 00 per site for the purpose of remediation. The three sites along Martin Luther ointgributiBoulevard, to the slum and have been dormant for more than twenty years,g blight of the community. The remediation of these sites will make them much more attractive for private financing of new developments on the property. COLLABORATION — RESIDENT INTERVENTION MODEL The early plans for the Model City Homeownership Street; 12th to 17th Avenue. ne anticipated the acquisition of all property between 58 Streetand 62na S The idea was to demolish all buildings, reconfigure ethe and�owSnhousoesorate mini - Although parks and build new single family detached the majority of the property owners expressed an interest in selling as the concept was introduced, the challenges of moving that volume of individual properties through the City's administrative processes proved difficult. Although the Trust was able to double the number closings the prof project area. able For period of time, the market was changing substantially example, property values on several targeted acquisitions increased over 100% inside a single year. of time and As it became clear that the cost of acquiring the property agencies rtosimplement a money) was extensive, the Trust partnered with plan which had been successful in other areas, particularly Washington, D.C. HOMEBUYERS CLUBS As an outgrowth of the Trust's monthly meetings with the City's Section 8 clients who were formerly residents of the Miami Limited properties, the Trust has established a homebuyers club for the prospective homebuyers in the Model City Homeownership Zone Pilot Project area. Additionally, the Model City Trust has assembled is group d ng Miami inc udes s graduates from homebuyer counseling programs Affordable Housing Foundation, Haven Economic Development Corporation, and Universal Truth Center Community Development zCorporation) O u theory is that we residents of the 33142 zip code and the adjacentp odes 5 can minimize gentrification and investor speculation in the area by targeting the individuals who area already residents in the area. More recently, our lists of interested buyers have increased with the teachers/ counselors from neighborhood schools (i.e., Allapattah Middle School), young corrections officers, police officers, and other municipal government employees. With the enthusiastic participation from this cross-section of people, the prospect of a mixed income community in Model City seems well within reach. FISCAL YEAR 2006 PRIORITIES BUILD OUT OF RESIDENTIAL DEVELOPMENT The Model City Trust Board of Directors has approved aihree additional developers for the construction of single family andy in the core Model City Homeownership Zone. Those developers include • Miami Dream Home Investment, Inc. • RERG Development, LLC • EDFM Corporation These developers are essential to the rapid implementation of the multi -family buildings. Miami Dream Home Investment and RERG, LLC particularly, are bringing their extensive experience in residential development to the benefit of the revitalization of the Model City Homeownership Zone Pilot Project. MASTER PLAN UPDATE As part of adjustments to the ambitious plan for full acquisition of all property between 58th Street and 62nd Street; 12th to 17th Avenue, the Trust is looking at how best to achieve the 450 homes proposed in the 1999-2004 Five Year Consolidated Plan and continue to advance the character proposed in the Model City Homeownership Zone Master Plan. Often, several lots necessary to implement the townhouses proposed in the master plan continue in private ownership. Thus, the Trust is looking at multi- family buildings on those sites in lieu of the townhouses. With the rehabilitation of the Royalty Heights Building discussed earlier, we expect that a model of attractive and desirable multi -family housing will inspire greater interest from homebuyers and acceptance from the homeowners in the area. This allows for a greater participation of low-income people as well because the development cost is easily distributed per unit. From a practical standpoint, the ability to acquire any significant amount of additional land is limited. 6 Additionally, the Project requires a higher density to minimize the relocation costs that can make the Project financially infeasible. This model allows us to maintain the majority of the current residents and d increase a new face capacity an themo allow them to become owners of the current residences COMMERCIAL DEVELOPMENT The Board of Directors approved staff to iss{leea solicitation for the Model City ment of the commercial sites located along perimeter Homeownership Zone: • 1199 NW 62nd Street • 1501 NW 62nd Street • 1500 NW 62nd Street • 6200 NW 62nd Street • 1613-25 NW 54th Street If we assume a minimum of forty (40) units per work site, these five work sites could generate 200 units easily. The solicitation current vacant lots with business and ment that will replace the slum and blight of the other pedestrian activity along the commercial corridor. The catalyst of environmental remediation, funded by the various grants and awards received by the Model City Pr Trustio ection (DEP) has ntal Protection Agency (EPA) and Florida Department of Environmental helped substantially to position these commercial properties for redevelopment. BUDGET REQUEST Model City Community Revitalization District Trust Proposed FY 2006 PROPOSED $ 391,192.00 Staff Salaries g,,83g,00 Fringe Benefits Advertisement/Public Notices 227,500.007,00.00 Business Expenses, Meals, Workshops, Board Meetings 5,000.00 Computers, Printers, & Peripheral (Rent of Equipment Outside) 5,000.00 Contracting - Outside Services 45,000.00 Lot Clearing/Demolition 5,000.00 Office Furniture --- desk chairs, tables, file cabinets 5i,000.00 Office Supplies 7 Other Insurance 2,500,002,500.00 Postage 10,000.00 Printing/Binding - Outside 12,500.00 Travel and Per Diem $ 626,031.00 150,000.00 NEW Acquisitions 2,712,133.33 Infrastructure Improvements $ 2,862,133.33 Marketing/Outreach (includes homeownership retention 50,000.00 workshops, marketing materials, environmental education) 450,000.00 Relocation Benefits 1,000.00 Homebuyer Assistance 4505000. 0 Planning/Technical Assistance 50, 00 .00 Legal Services 12550,000.00 Lot Clearing and Maintenance 50,000.00 Demolition 560,000.00 Environmental Remediation 50,000.00 1 Property Management/Maintenance 10,000.00 Beautification Project (Painting/Landscaping) 2,00,000.00 Anticipated Services Total Expenses $5,263,1 b4.33 Revenue by Funding Source .00 32,1 ,413 HOME Investment Partnership Program Funds $ 2 Congressional Neighborhood Initiative Grant FY 20031,015,020.3300,13020.3 U.S. Environmental Protection Agency 2005 200,000.00 U.S. Environmental Protection Agency 2005 Model City Infrastructure Improvements (Homeland 800,000.00 Defense) 626,031 .00 General Fund Request $5,263,164.33 8