HomeMy WebLinkAboutPre-Attachment 2Attachment A
Wagner Square, LLC
1175 NE 125 Street, Suite 103
North Miami, Fl. 33161
January 25, 2007
Glendon P. Hall
Assistant Director
Department of Economic Development
City of Miami
444 SW 2 Avenue Floor 3
Miami, Fl. 33130
Re: Wagner Square Modifications / Corrections
Dear Glendon,
Thanks for coordinating everyone and taking the time to meet with me yesterday
afternoon to discuss the modifications that we are requesting for the Wagner Square
development. As .1 mentioned to everyone at the meeting yesterday, there are three items
that need to be corrected and or modified. The items appear on the original Declaration of
Restrictions and Reverter recorded on March 22, 2005 and on the Amended Declarations
of Restrictions recorded on July 12, 2006; therefore, both documents need to be revised.
The two modifications are as follows:
• We would like to request that each residential phase of the development be
allowed to be reduced to a minimum of 52 units and a maximum of 99 units.
The affordable and workforce housing units criteria will remain the same, In
essence what we are requesting is to eliminate the 47 market rate units.
• We would like to request that there be One clear date that dictates when the
reversion clause can take effect. As agreed, we should use the date of June 10,
2008. This is the date that the City will become obligated under the Section 108
Loan along with Wagner Square, LLC. This will eliminate a substantial amount
of confusion for everyone involved specifically the institutional lenders for the
development.
The other item is a typo that needs to be corrected. In the original Declaration of
Restrictions and Reverter, the commercial phase is described as approximately 108,000
square feet. When the Amended Declarations of Restrictions was prepared the
commercial phase is described as approximately 80,000 square feet. This needs to be
corrected to say a minimum of 108,000 square feet which is what the Section 108 Loan
documents stipulate. Moreover, if the residential square footage is decreased, then the
commercial square footage will be increased, therefore potentially creating additional
jobs. This is what Federal HUD is focusing on.
Those are the three corrections and modifications that need to be incorporated into both
documents. These modifications do not have any budgetary impact on the City, As you
know, time is of the essence and we cannot start to make the changes to the currently
designed residential phase until this is not approved. Unfortunately, because of the
current market conditions the 99 unit building is not economically viable.
I think we also need to get the City's consent to separate the land into two parcels, one
for residential development and one for commercial development, and into two entities
Wagner Square 1, LLC which will develop the residential building and Wagner Square,
LLC which has already removed the environmental contamination from the property and
will develop the commercial building. 1 believe these are administrative approvals;
however, in the interest of time if they need to be ratified by the City Commission let's
get it all done at once.
Again, thank you for your cooperation and assistance with these issues. Especially to
Robin who is dedicating her time to this even though she is going through some critical
health issues. If you need any additional information from me please feel free to contact
me.
Since rel y,
berto Milo, Jr.
Manager