HomeMy WebLinkAboutLetterk
iTtCitij rrf 4iarn
€'EDRO G. I-HERNANDEZ, I'.f
City Manager
February 15, 2007
Mr. Paul D. Webster, Director
U. S. Department of Housing and Urban Development
Financial Management Division
451 7th Street, S.W. — Room 7180
Washington, D.C. 20410
RE: U.S. Department of Housing and Urban Development ("HUD") Section 108
Guaranteed Loan, and Interim Financing Variable Rate Note No. B-02-MC-12-
0013 and BEDI Grant Agreement No. B-02-BD-12-0047 for the Wagner
Square Mixed -Use Redevelopment Project ("Wagner Square Project")
As To: Request from City of Miami, at the request of Wagner Square, LLC, for HUD
consideration of changes as indicated below
Dear Mr. Webster:
Attached hereto and made a part hereof as Composite Exhibit A are (1) a letter dated
January 25, 2007 from Wagner Square, LLC as the developer and Obligor (as defined
below) of the Wagner Square Project in Miami, Florida to the City of Miami (the "City"),
and (2) a letter dated December 8, 2006 from the Obligor to HUD, both in connection
with the Obligor's requests for the City and HUD to consider Obligor's proposal: (a) to
eliminate the market rate housing units without changing the number of affordable and
workforce housing units, (b) to commence construction of the first residential tower by
no later than June 10, 2008, and (c) to build a minimum of 108,000 square feet of
commercial space for the development of the Commercial Component of the Wagner
Square Project.
For your convenience of reference, the historical background for this request follows. The
City on March 28, 2005 submitted and on March 29, 2005 the U.S. Department of
Housing and Urban Development ("HUD") acknowledged receipt of, inter alia, the
following items:
1. The original of that certain Variable/Fixed Rate Note, referred to as Note
No. B-02-MC-12-0013 in the Maximum Commitment Amount of Four
Million Dollars ($4,000,000), dated by HUD as June 10, 2005 (the "City
Note"), executed by the City as borrower (the "Borrower") and payable to
the order to the Registered Holder thereof, and to be guaranteed by the
rjj:Document 66748
1
DEPARTMENT OF ECONOMIC. 17E'VELOPM[NT
3rd Floor ! Miami, FL 33 1111 ! 1;SC•.` 1 } b-1 '35 i9(151 41 {i-215C
Mailing Address.. P.O. Flo% 330:410 `lorldJ- s•. : :?-0701
Secretary of HUD under Section 108 of the Housing and Community
Development Act of 1974, as amended, 42. U.S. C. 5308; and
2. Originals of the Contract for Loan Guarantee Assistance under Section
108 between the Borrower and HUD (the City Contract"), in which the
Borrower pledges as security for HUD's guarantee, inter alia, proceeds of
and payments under the Borrower's loan to Wagner Square, LLC (the
"Obligor") pursuant to the loan agreement from the City to the Obligor
(the "Obligor Loan Agreement"), the related note from the Obligor (the
"Obligor Note"), and the related mortgage (the "Obligor Mortgage") ") in
order for Obligor to develop the Wagner Square Project..
Pursuant to a custodial agreement, dated as of June 10, 2005, among HUD, the City, the
Obligor, and SunTrust Bank as custodian (the "Custodial Agreement"), the Obligor Loan
Agreement, Obligor Note and Obligor Mortgage, inter alia, have been collaterally
assigned to HUD as security for the City Note and pursuant to the City Contract.
Obligor has indicated that it will still meet the national objectives under the Obligor Loan
Agreement of creating 194 jobs and removal of slum and blight on a spotted basis. If you
recall, the BEDI grant and HUD Section 108 loan are tied only to the commercial and
environmental components of the Wagner Square Project.
Accordingly, pursuant to the City Note, the City Contract, the Obligor Note, the Obligor
Mortgage, and the Obligor Loan Agreement, the Borrower and the Obligor hereby
request that HUD confirm that it has no objection (a) to the elimination of the market rate
housing units without changing the number of affordable/workforce housing units, (b) to
commencement of construction of the first residential tower by no later than June 10,
2008, and (c) to build a minimum of 108,000 square feet of commercial space for the
development of the Commercial Component of the Wagner Square Project. The Obligor
has indicated that it has and/or will meet the National Objectives of creating 194 jobs and
the removal of slum and blight on a spotted basis as required by the Obligor Loan
Agreement. The Obligor's corresponding requests are attached hereto and made a part of
this request from the City as Borrower.
Attest:/ '% z.
.t. 4._44-4 g 7 e i
Pri ornpson, City Clerk
LisaMazique, Director
Department of Economic Development
rjj:Document 66748
!� D D27 ci
Sincerely,
City o a Florida municipal
q66rpbration
dez, City Manager
Barbara Gomez, Direct
Department of Community
Development
2
pprovas to Insurance Requirements: Approv ' 9 Form and
Correc`a�i -�
By: (J �[ l _Br
LeeAnn Brehm J +r,.e L. Fernandez q�
Risk Management Director C. Attorney
Composite Exhibit A — Requests from Wagner Square, LLC
CC: Debra Sinkle Kolsky, President, Wagner Square, LLC
Alberto Milo, Manager, Wagner Square, LLC
Barry 1. Blaxberg, Counsel to Wagner Square LLC
Irwin P. Raij, Counsel to Wagner Square LLC
Holly Lee Jeske, Custodian, SunTrust Bank
Robin Jones Jackson, Assistant City Attorney
rjj:Document 66748
3