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HomeMy WebLinkAboutHousing Impact Study Including Page 17Q�dd 1'4LD Ei iJI F3C 9°AE2 —FAL Direct- 305 377.6235 f ilanzie4jg BRZor}inajaw, cow VIA HAND DELIVERY November 8, 2007 Ms. Teresita Fernandez Execu tive Secretary y Planning & Zoning Department Hearing Boards Division City of Miami Riverside Center 444 SW 200 Avenue, 70' Floor Miami, FL 33130 RE: Sawver's Walk M€'SP A lication 2007 - File ID 06-00614znu1 Dear Ms. Fernandez: This law firm represents Crosswinds at Poinciana, LLC, Poinciana Village of Miami, Ltd., Sawyer's Walk, Ltd. and the City of Miami Community Redevelopment Agency, the owner with respect to the referenced application. Enclosed please find the Housing Impact Study, including page 1.7 that was inadvertently omitted from some of the MUSP application binders. I am also enclosing a CD-ROM of this report. Should you have any questions regarding the Application, please do not hesitate to contact me. S' cer ly, { i3en Fernandez BF/bl Enclosures cc: Charles F. Elsesser Jr. Esq. WACHOV€A FINANCIAL. CENTER ® 200 SOUTH BISCAYNE BOULEVARD, SUITE 850 a MtANII, FLORIDA 33131 PHONE. 305.374.5300 e FAX. 305.377 8222 Sawyer's Walk and The Sawyers Walk Project as primary catalyst to Overtown Folklife Village District And Overtown Redevelopment Collins Center for Public Policy September 11, 2007 (Draft) Executive Sumrarj' 'The Sawyers' 'aIk Development project is vital and catalytic to a comprehensive strategy to revitalize Overtown, This ,strategy includes creating a diversity of housing choices within Overtown such that current and future Ovcrtown residents [night benefit frorn new and replacement housing, job creation, and an improved quality of life_ 'The need for replacement housing is documented by both census data and in the findings of necessity study that preceded the establishment of the SEOPW CRA, The need is greater than any single governmental source can provide without a systematic and informed plan that focuses on the goal of harvesting an acceptable number of low to moderate income units. For the purposes of this report, a low to moderate housing unit is a unit which is created by agreement, direct or indirect subsidy which may be attained either by purchase or rental by a person who is earning 80% or below the area median income. A very low housing unit is one that is i'ented or purchased by a person who makes 30% or below the area median income while workforce is defined as an attainable unit by someone or household who makes 140%or below the area median income. In this report we assert that the strategy for creating these units is dependent on mixing. direct traditional subsidies such as tax increment funding, surtax and other sources with private development funding to produce mixed -income housing. Mixed -income housing projects provide housing units to a diverse economic population thus leveraging, directly or indirectly, public subsidy in the production of lower income units. In this report vve are focused on one of the structural issues to the affordable housing problem that a developer such as Sawyer's Walk LLC, is most concerned with -how •to supply it. Mixed- income and workforce housing is; the only type of housing that can attract multiple economic, social and environmental benefits to a declining neighborhood. It not only revitalizes these economies but stabilizes them in order to create a r-econi_able` demand for goods and services such as grocery stores, cleaners and other retail outlets that create jobs and other opportunities for existing residents. Moreover, a majority of developers have had a market bias towards disinvested urban core communities such as Overtown.- By contrast, most government policy makers have made their total objective the attraction of private capital and investment in these declining areas. The purpose of this document is to show how vital and catalytic the Sawyer's Walk project is to the execution of these strategies. This project is consistent with the redevelopment strategies which have been approved by the public sector with extensive community input over the last twenty-five years. Some such as Michael Porter from the Harvard Business School would argue that there is robust and uaderserved demand in the typical disinvested inner city neighborhood. In the case of Overtown, the issue is the lack of current quantity (population) as opposed to quality (existing demand), 2 Overtown has not had significant nesv market rate investment in over 20 years while all omits neighbors have, Over the past decade cities across America have been rediscovering their -ore neighborhoods. Areas once verging on abandonment are seeing new lie returning to their streets. In .1960 more than 40,000 made their home in Overtown. i1'oday it has shrunk to less than a quarter of that population. In ninny respects Overtow€t's decline is the result of public policies. Elevated Interstate highways have cut it up and cut it off from surroutadine areas. Houses have been abandoned and then cleared away, and in their place facilities such as a power substation and a private bus garage have been located. Overtown has been treated as a hack lot for locating downtown -serving utilities and activities. In tittles of high racial tension_ Overtown has erupted in rioting adding, further to its decline. Even benevolent attempts to transform it have backfired. For example, the Miami Arena that was expected to bring tourists into the area stands as an abandoned hulk near the heart of the neighborhood. Ironically, in its currently depopulated state --with lot after lot scraped clean of homes and businesses --developers are realizing that this area is attractive, not so much in itself but because of what immediately surrounds it --downtown Miami. Jackson Memorial Hospital, Miami -Dade College, the Performing Arts Center, and the developing Miami River Front Park. Overtown In a 2002 study done by Charles Lesser, it was estimated that there were 399,000 jobs within a 5 mile radius of Overtown. More recent market analyses reconfirm these statistics and point to Overtown as the "hole in the donut" of economic vitality' To create a viable Overtown their needs to be an array of housing types and prices While hundreds of millions of dollars of public funding has been invested in Overtown, there has been an almost complete void of private investment Public investment must be leveraged with private investment to maximize opportunities for low-income residents and create a sufficient number of housing units to re-establish Overtown as a viable community. Charles Lesser private consultant study for the Collins Center for Public 'Polio} in September of 200 i 3 Figure 4 I Hole in the Donut The neighborhood is connected to many of these surrounding centers of employment, recreation and entertainment via multimodal transportation systems to include Metrorail, People Mover and bus systems that make it a natural commuter/residential community. Fortunately. some downtown -edge neighborhoods, such as Overtown, have been organizing to protect the interests of their residents and make them beneficiaries of redevelopment. 'Typically these efforts involve capturing and employing market forces so that rather than massively subsiding redevelopment, some of the more economically sustainable dements of redevelopment can serve to cross -subsidize others elements. such as low income housing. The Sawyer's Walk project is an example of this cross subsidy. 4 Prioritizing need for resident housing with new and replacement developments I_here laa = t-eci? a number ofefforts To measure and prioritize the housing need of current Overtown residents, in order w ensure their needs not be obliterated as a result of current redevelopment and market activity. One such effort was a capacity study done by the Coiiins Center for Public Policy in September of 2003 when the Sawyers Walk project was initially vetted and introduced to the city and neighborhood residents. The study had a tarirtaber of objectives: First, to provide a graphic and holistic picture of various redevelopment opportunities in Overtown; second, to identify housing priorities for existing residents and, third, to formulate some housing goals that would ensure the equitable revitalization of the neighborhood. It was hoped that these goals, if prosecuted systematically, would result in the triple bottom line effect anew and replacement housing for current Overtown residents in the near tern a positive inflow of population required to recreate a vibrant Overtown and economy, and leveraged financing for additional replacement housing for current Overtown residents. The Sawyers -Walk project is seen as catalytic to this strategy. 5 Figure # 2 Comprehensive Redevelopment Plan Overrown Manter Redevelopment Concept ColInts Center Fur Public Policy Using census data, zoning information. aerial photographs, and physical surveys. the Collins Center attempted to (l) understand the potential population zapacity of the neighborhood: (2) identify target redevelopment/ improvement areas; (3) identify the costs and makeup of replacement housing: and (4) identify the target areas for new development. Some of the findings were as follows: 6 0(91 afn=ta_ l`Iss .1 A;aaivtcit, cc e uvcte°.d 1, @ha@ corr",1E) .11111n4 ill FINDP(G5 r9 "' 1r tlde.1i tb@ ild 1111E of i r 1Y f ii.ta;.:'.i5' r:Arold u p -i 113_ iit'4e 1$Arii ij a €100 or @loom 10)111 115 t)@ 04141i€ g do_ r)1d:ale crf the Sn;rtlaeast s eR€rtm3z: Psuk : r'@ni 1.-P.f Ism} souid support the I'.0t1111-91us €1eae larirs. With an average household size of 2.3 persons, full deveioptneut would increase the Oidertown population 10 approximately 40,€11..10 people. e rc sae 1e4o p€oicet areas affirm :�tr... A vcitue that have vacant pane`_ c. r tssenti r<=es appro,rr r for far, er cca le n.,xei•- use a°evelsp€nevi_ . These are ,six project areas within i) rerorwii that have vacant }rarcein or assemblages appropriate It. r 1nr_.e-scale cleviihi :rn 'Iwo existing developed areas_ defined by ilteTown Park complexes and Chimer pobilc housing poi ed, housing. an esatina11"d 5,000 of the neighbcrftmad's 8,000 resitictus, should be 3E14p.t1e0 10 iloierr1lt10 whe(her renovations are tegoircci is bring them up to par with new developments. The developed areas of the Town Park connrrwl'€ties ir1 North Ovetow;t and ("Miner Place in 1iVest Ovetown house xppro,ziinately tyro -thirds of [lie residents of Overrownin these communities, the land is either owned by municipal government fMD1-1A) or by their respectivir cooperative/condominium associations. The nature of the !tensing and the land ownership 5€1.l9ture create the opportunity for projects that could impact a large percentage of the population without the conccras of svet'rirlp: with multiple land -owners and the costs of newconstrucbot There is a corridor along NW 2" tiveane (from NW 12°i Street €o N4t4 2<i°' Sire et} slid. hits ;1 large number oP vacant parcels suitable fir the develop€nett of inhi11 housing, The majority of the. parcels in this area are owned by individual landowners, limiting the ability to develop large-scale projects. Development opportunities along the 24 rlveitul" colrid€1r lrauld he 1b1 smaller -sea le seatiered-site and it'ltill. Abe have seen such development begin to take place trough it partnership between Kithira! for the Humanity and Miami -Bade County. Housing. to this area is owned by absentee landlords, and, in general; the duality of the housing is questionable at best. ("riven the large number of the vacant parcels along 2' Avenue- infili development is appropriate_ An estimated 3-11)0 or (Nertowtt's 11,000 residents five in housing typified by the infili ;ilea. Given the tack of a coordinated housing replacement strategy and the poor condition of the housing stock, re- housing these residents, is one of the priorities To check the estimate above, we compared the number of twits needed by bedroom size to time average household size in Overiown_ This calculation chid -arms that 3,000 is the number 01 residents who will eventually need to be re -housed From the total number of housing units in Overtown, we subtracted the number of units built prior to 1870 (for economic and so -net -unit obsolescence). The resulting shortfall of E, 165 [units is then multiplied by Dvertowils average household sire of ?.3 persons, yielding approximately 3.000 persons. 1 ni.ES ll'f ()renown liable* Demanded Shortfall 1-b(11411 1,88 272 2-bdrrrl € :1-bdml 459 152 465 555 -584 -6 4-bdri} i 5-bc1m1 -403 i -6 'E:esling;ealdanliai mrtsirriluti nose a»fshucled 111 or 11' j970 7 9 7 E 121 -112 a#xis 355 2520 -1)65 7 Comment [plj: Needs to; he reformatted, Rtsrt, Eata n €cos The followini1 schedule was a lti:,torical snapshot ofhousing replacement costs in 2003 dollars ilia .ire indicated assumption of -replacement costs at ,$120 per square foot: _Scauareitt Units In Overtown 1-bdrm 2-bdrm 2-bdrm Available bernande;1 St-torSalt 688 272 459 152 465 555 4-bdrm 47 �407� -564 -6 7103 -65 94placemert Value 2005 5 63,072,000 2nc&sqft $ 12600 ,ca c�sf 2008 2011 2014 2017 2020 2025 2328 2035 2008 2011 2014 2017 2020 2025 2028 taco 5-bdrm+ 12 Totals 1355 2520 -1165 756 000 $ 53.19,009 5 9.00.2 000 5 18,4,000 $144 ise 9 2% 3% 4% ate re tacement cost rerun 5 157,143.120 T 5 161 458.163 $ $ 152,818,060 1.1, 8 1 5 1 i 11.708, 395 $ 185,731,741 $ 182,0057778 5 203,544,898 5% 6% 7% �.I. 'Hat 165,703.230, $ 170,118.240 5174.443.280 190,662 lac)' S 2 -0.739.523 $ 211.376.359 5 171,286.001 $ 180,844.339 $ 202, 545,660 $ 226,851,139 5 219251,507 5236,872.837 $ 279, 509,712 $ 255,402.406 $ 309.036912 5 192,929,355 ` 5 221,820, 338 S 254 973,275 $ 289 973 343 $ 329 621.450 S 373.934 653 $ 212,222236 5 255,093 389 5 304 887,931 S 362,465 579 $ 428,757,898 $ 504.811, 795 $ 224 055.570 $ 278,055,794 5 341.4i4,453 $ 415835,681 $ 505,946,120 5 610,822,272 Per-unft re • tenement cost 4 size with estimated annual increases throu• h - ears indicated $ 108.000 $ 126.000 5 132,000 $ 150,000E 5 162,000 5 123,749 3 114.489 5 137.340 5 147.840 5 172,530 5_149,701 5 165,581 5 198375 5 128,533 $ 163,174 5 185 450 $ 136,348 $ 144, 528 $ 156,981 5 158, 520 177.859 S 5 103.867 $ S 222,947 $ 5 243.012 207,705 232.629 279,155 191,160 $ 149,737 $ 314,082 5 _ 301734 5 370 617 S 377.129 $ 481,832 $ 433 315 $ 433,699 5 568,526 $ 524.311 181,181 206171 5 219.230 5 320)74 At the time of the study, we concluded that the 1,165 units ofhousing demanded but not provided translated into in excess of$144 million in replacement costs then. To build the same number of units with 2 percent annual increase would have cost in excess of S212 million over 20 years. Therefore, a sustained but informed effort was needed to build replacement housing in Overtown. 1-High profile projects such as the Sawyer's Walk project typically suffer from regulatory, political and procedural delay. The opportunity costs associated with the delay in building new and replacement housing can be clearly demonstrated by using the same chart in estimating. today's replacement costs: 8 S uarelf1 900 1050 1100 0 --__----_--_. 1350 Units in Overtown 1-bdrm 2-1 ttm 3-bdrm 4-bdrm Available 688 459 152 47 Demanded 1272 465 555 107 Shontall -584 -6 -403 -60 Replacement Value 2005 5 84,096,000 $ Priceasq.21 5 160_00 Annual cost 7 2006 2011 2014 2017 2020 2025 2028 2005 2008 2011 2014 2017 2020 2025 2028 5-bdrm+ 121 -112 Totals 1355 2520 -1165 1,008.000 5 70,928,000 $ 12,000.000 5 24,192,000 $ 192,224,000 2% i 3% Aggregate replacement cost by unit size $ 203,757.440 1 5 209.824.160 $ 215 $ 215,982,886 1 $ 228,381,334 $ 241 $ 228,941,860 $ $ 242,678,371 $ 27 €.339,863 , $ 302 $ 257,239:073 $ 295,760,451 1 8 338, $ 282,962.981 $ 340,124,519 , $ 406, $ 299,940,760 $ 370,735,725 $ 455. r-unit re 44,000 152,640 $ 161,798 8 171.506 $ 181,797 192,704 $ 258,489 $ 211,975 $ 297,262 $ 224.693 $ 324,016 Pe $ 270. 40/ ., . .. r 5% I 6% 7% with estimated annual increases (through rs indicated) ,290,880 ; $ 221.057,500 - $ 226,824.320 5232,591,046 125,786 , 3 254,216,240 $ 267.652,698 $ 281,435,158 060.880 292,348,676 $ 315,830,183 1 $ 340,536,542 ,468,185 ' $ 336,200,977 $ 372,679,616 , $ 412,049,215 764.368 $ 386,631,124 $439,761,947 = 5498,579,551 517,241 , $ 483,288,905 299,311-$ 555,782,241 $ 571,690,531 I $ 673,082,393 , 94, 82 / 1 $ 81,4 , acement cost b size with estimated annual increases through -ears tndicated $ 176,000 $ 200,000 . $ 216,000 $ $ 230,000 $ 254,680 $ 199.601 $ 220,774 5 264,500 : $ 300,758 $ $ 217,565 $ 247,267 $ 304,175 $ $ $ 237,146 $ 276,939 310.172 $ 168.000 $ 183,120 197,120 372,207 416,671 $ 349.801 $ 402.271 $ 502,839 576,265 354,895 $ 494,156 $ 642,402 $ 577,753 758,035 1 $ 699,081 $ 164.999 $ 199,649 241,575 292,306 353,690 427,965 Using S 160 per square foot as hard costs- it would cost 33% more to produce a 1 or 2 new or replacement bedroom unit today than when estimated in 2003. Moreover, this aggregate increase of 33% translates into an 8% "inflation" factor that was not foreseen when the study was done. Stated differently, we would now realize 471 and 415, fewer 1 and 2 bedroom units respectively than if started at the assumed cost and before the rapid escalation of construction costs. to this context, beneficiaries of badly needed new housing stock need to "push" projects forward appropriately as opposed to "pulling" them back. 9 248,935,654 Reconciliiug the need for resident housing with new developments In aggregate, the Sawyer's ti-a k project is but one of the projects that i.s needed to cc>tatribule to the new and replacement housing stock in Overtown. [.However, without the Sawyer's Walk project there is very little housing of scare that can be realized in the near term, The ability of the major properly owner, the CRA, to cause something of scale to happen is also important. Without the expectation of significant numbers of new residents in the near term, other potential developers (ntents) have no reason to expect that they could duplicate a comparable project of scale. There would also be no rationale to plan for the supporting commercial and retail that could provide .for comprehensive revitalization and turn marginal projects into good ones. Moreover, the failure of the Sawyers 'Walk project at this point would set o#Ta bevy of litigation that lvould render three and a half blacks in the project area tin -developable for a least the next three to five years. Of the 1050 proposed units, 50 units will he conveyed by the developer to the CRA for existing resident occupancy in exchange for the land and entitlements. There will be an additional 160 units that will remain affordable' under an agreement between Sawyer's Walk and the City. An additional 124 units may be purchased from the developer by the County and the City to be used for existing residents. The total subsidized units in the project would be 32% or 334 units with the remaining competitively marketed as workforce units being prices at between S 360- 380 per square foot. As a result of the population and economic activity created by the project on blocks 55, 56. and 45 (the Sawyer's Walk Blocks); blocks 25 and 36, which are owned by the CRA, are currently being considered for development? These blocks lie directly to the north of 81.1' street between 8`1' and 10`1' streets and between 2" avenue and the Nletrogail (see figure 43 below): „ Affordable to those earning no more than 120% oldie area median income. Per statements by the district 5 Commissioner and CRA staff Minutes from the July. 2003 CRA Board meeting. I0 Comment [p2 : t think !hese 1111Inbcrs arc ri aat. Figure # 3 Folidife District Area aira ,VAVA4w-,. • ar,Z--4:avrza • I - - MiAMI ARENA I 1 Taking a turths`,'r look at ?otentis capacity and planned unit mix in an area adjacent ti) 'and directly to the north of the Sawyer's Walk project, we find an additional 246 units that could be built north of 8`i' street within the defined project area, even if the entirety of block 36 were i;ti hca ed to commercial and cultural activities. The majority of the remaining site control in blocks 36. 25, G,F,:A, and B in figure 43 are uontrotled by the CRA, the Coitins Center and f 3Av1.E CDC in that order of raLmitude.`' These entities have pledged to work together to brine about a cohesive vision that will be guided by the objectives of the CRA [Man as amended and passed by the Board of Commissioners in November of 2004 and which also respects historical preservation as promoted by the Black Archives through the FOlkicle- Veiiiaac. `' Please see documents appended hereto for background materials on the Co Center. BA.ivtE and the CRA A copy of the 2004 CRA Plan is attached. 12 :SITE PLAN SCALE' 1,169 4 4 North Folklife District Area LEGEND 1. LA0Z ,13,IAGE 1251.121ITS 2 CUTUPS 37 Ec7-U-E 0L11200130 MO UNITS 3 1250KS1945033300.1371010, 733T A. HI3T0R=C 3CH%TZ109 MJSMONARY BAPTIST 15910A919 3. HISTOR17 NEW PROUST00N111070E 5. NISTONVC WARCLUOUSE 7. VILLAGE LOFTS 31 Ugi7E 91NETA11. A7 GSYO 7100E 5. PARKING GARAGE 9. 14 STORY RESIDEN11Ai 159 36130 VILLAGE 10070 797 NETAN AT GROUND FLOOR 19. HISTORIC GORSEY HOUSE 11. 016TGRIC GREATER BETHELAME CHURN 12 1115703 G LONGSHOREMAN NMI 15 12 STORY RE$105711AL 59 MINTS 301 RETAIL AP UN0ty7 FLOOR 14. YILAGE LOFT 5 271114MS W RETAIL AT 6R0131.42.1 FLUOR 1S, F'UTURE:,114EO-USE 611113-C-U7 159 LIMITS RES10ENT€41 16. fi1FUREM153Ga5E B01E1-011` 159UNtt8 RES1O=NT1A1 BiG BOX RETAIL 67.999 SF PUBLIC PARKII'G GARAGE 17. PSS T031C LYR1C THEATER 15. FUTURE M`Xf3-USE BUILD -OUT 155 UNI2S NES1O-FMTAA1 R07BL V.12,99M SEAT AJ910061117 PUBLIC PAR11[NB GARAGE 19. HISTCRI0 Bi.ACN PRECINT MUSEUM va,K. ?1TN 91 AND N.W. 5711AVE. 2©_ E 001R10Ell1NEZER M1201013 T CHURCH 21. NiETORIG 20005THOMAS �.AWm I, 22. 91STO1.LE %RAY L'1,IN111 N,Yl.111991 S7. AND N.W. 1ST AVE. 23, FOUNTAIN 73005R FEATURE TOTAL 1,245 UNITS This area. plus the Sawyer's Walk project area as depicted in Figure # 3 is known as the Folkiife District area. It is projected to yield a number of affordable housing units as according to the following schedule: 13 Figure # 5 Scheduled IBuildaut Foiklife District Fo€ifiife District EcotlorrAc Development Projected Economic Estimated Projectad Tat2a hits $of Development Completion Date :Development Projects i'Ja. us at 1avkd C=uii ,M84-25ribia Perna: rxxkb d lads! 5O'.Ce41merci8 004ail5 5 Year SiaNFinish 1;Lync meatier $8:000, %A 0..Sd7- ,coo 20042009 2:S5:10-'ncnYucornPotlf $10,050.050: 123 128 1,AF!:= 1L1,C�0 2i0,' ``2L 3 Ccurgy Nice Bldg.:.' 585920_0X: 1`A 11.87% • 748>6X 201523/0 - - - - - -_ 40k ?..6415FelfrEiaiUres€si 82D3000.606 SEYi 1f2C "C19 27.52% 175.007 200712005 5 Fdk€ifs Villages L! 540.000,1307. 250 • 250 6.84% 20.000 .. 200712005 63rd Ave/7-re i'rrye65-15rVtl $_-fl, €C➢O:CY7G. 130 130 d.'€9'12 33, i 20071206° 7 3rd A;erxae Canmals-MU 525, t 'r10 50 • 3.ggg� , 25.000 2007/ j 8 SetFta A4t1s Apf NU. ..... 5i1,700.0� 65 85•1,6.3'.-0 15.500-.200712619 : Land Trust Pads-Mti . s4,0 000 .100 25 - 75 3. 53°-:, �0. .... �2007 ,'201 i 10 Croasvrrata-MU 8205,030.002 .... €rso aGa zasr�o 7sma 2odif2©12 11.3802 lkage - 541502.033 111. 12'. DI, 25 - litstihrlicnal-tvi'I Total: %of Total. 75 41 5.584 550.800.000 30 102 . 7.0 ;'; 67.500 2Cd'o-5120?3 5716;302. 2244 538 1535 1_02 : 1.194,560 22 °5%E 55.53% *17 mid 21-story County office buildings project et 8th Street MU- indicatesRflx-use Reddetitialfretell/commercialldevelopma8 (tvdete June 13, 2006 by Don D Pnte.son - SAME bewlopunerH Coporaffon t>f S02 h Ftnrfde As the data indicates, there are a number of important and positive impacts that will occur as a result of the Sawyer's Walk project. First, there will be significant production of new housing within the heart of the existing population in Overtown making rehabilitation of surrounding units desirable as well as probable. Second, it is anticipated that there will be over three quarters of a billion dollars in new investment within a one mile radius of the Lyric Theater reinforcing it as the cultural and historical heart of the community. Third, it is expected that in excess of 2300 new residential units will be built to include 538 very low to moderate income rental units with the majority of the balance of units being affordable to a population making 150% of the area medium income or below. Fourth, it is expected that the CRA will be able to eventually bond up to $40 million in new tax increment money generated from the Sawyer's Walk project in order to leverage additional units that can help close the supply gap for low to moderate rental and ownership units. This money would become part of the public contribution to solving the housing shortage for Overtown residents without having to tap additional taxing sources. Fifth, the data suggest that the majority of units would be owner purchased and occupied further stabilizing the neighborhood and its economy. The increase in the home ownership rate' would also be accompanied by increased utilization of existing transit infrastructure. Smart growth would ensue from a denser buildout of existing vacant properties. Social Compact Reports the Owner occupied units i1 Overtown is 1 X / census data reports udder lt)% 14 l lte data also sucgest the fulfillment of tl e objj-ccof all of the }r-evintrs red cvez € r t plans with respect to aellievin£o a Mixed -income community.' In short, these is a comprehensive set of benefits that flow from new development in the holkiife Village (District of which the Sawyers -Walk project represents 2 '> of the total buiildoui (see figure 4 3 and 5). lto be Stine, a number of projects on Figure ti 5 have either been completed or approved by the appropriate a�oeney. For instance, Miami Dade County has just completed one ofthe county office buildings (line item 3) as part ofthe transit village development.' This project is bringing approximately- ? i00 employees daily to the area. These employees are part of the new workforce housing market that the .Folkiife District will serve, The Lyric Theater's 6 million dollar expansion is now complete. This facility is and will continue to be the cultural and entertaiurnent centerpiece of the Folklife District Village. Jazz Village, a mixed -use, mixed - income project (line 1 1) was approved by the CRA Board in July, 2007. This project is important because, when completed, will combine housing, economic development and environmental objectives under one roof. The project will feature 70 very low income rental units and 41 moderate workforce for -sale units. The project will also have a school that will train a workforce in the medical arts enabling graduates to earn salaries in excess of 150% of the area median income. The project will have 10,000 square feet of commercial space that will house small business concerns. Need for Workforce Housing What is often overlooked in the present redevelopment discussion is the original redevelopment plan for Overtown of 1979. This plan called for the middle income diversification of Overtown and the inclusion of Black business development as part ofthe redevelopment objective.° In fact, it was never assumed that all the effort to acquire, clear and redevelop would be done solely to re -house the existing population but rather to accommodate a broader and more comprehensive strategy that would result in a mixed -income, and economically revised community. in part this objective reads: "People living in the area today should have the opportunity to continue to reside there and share in all aspects of redevelopment efforts. Programs should be aimed not only at physical changes but should also seek improvements in the job opportunities, income levels and business development needs of residents. New moderate and middle income residents should he attracted to the area. Black business and community development institutions should be full participants in the redevelopment process. While substantial government investment will be needed to provide a catalyst for improvements, a key strategy is to create a c•limcare.for private reinvestment in the area. ' A complete list of these objectives is provided in the attached appendix This office building is built adjacent to the Metrorail transit stop at 8!h Street_ These objectives are carried through to the 2004 plan as a guiding principle. t2 Source: Overton a Redevelopment Plan_ 1982 excerpted from the amended plan of 2004_ "rest 1979 objectives were incorporated into the 1982 redevelopment plan which is today the only official document that has been 15 Need for Workforce Blousing A recent report done by Florida International Universtiy's 'vle-tropoiitan Center' Ior the Metro - Miami Action Ilan cited a "brain drain" of middle ---class blacks who were fleeing out of Miami Dade County because of a lack of job prospects, poor schools and lack of affordable housing.'' This group, earning mostly between S60,000 and $80,000 have similar concerns as others in the same income group who work in and around the job centers that surround Overtown (see Figure i 1). `The Sawver's Walk project will offer between 210 to 334 units to people who earn 150% ofthe area median income or below, prioritizing those buyers who have ancestral ties to Overtown. Moreover, anecdotal reports and hard data indicate that significant numbers of the Black middle class were displaced by the intrusion ofthe highways of the early 1960's. This displacement has been largely ignored in the discussions pertaining to redevelopment. When one discusses the quality, character and history ofthe Overtown of old. the Black middle class was e driver of the culture and the economy ofthe vibrant Overtown as in any other thriving neighborhood. There is anecdotal evidence that this population would like to return. To be sure, if Overtown is to recapture its vibrant culture and economy, they will have to return- and they will have to have somewhere of quality to live. The workforce housing piece of the revitalization strategy has been largely maligned out of fear of gentrification. However without it, Overtown vill have no way to leverage its economy back into the mainstream of commerce. Neighborhood Stabilization One of the persistent criticisms of adding workforce housing to the array of housing in Overtown is that this will cause displacement of existing residents. The argument is that it will cause property values to go up, pushing rental prices up and existing residents, who are under -housed and rent burdened, out. We have called for a coordinated set of strategies designed to allow economic vitality to return to Overtown while ensuring that current Overtown residents are not displaced and adequately housed. No (direct) displacement will occur as a result of this project, the original 323 occupied units have been replaced within the Overtown Area since 1986 In figure ° 2, we observed that about 63% or 5,000 ofOvertown's 8,000 existing, residents live within the marked yellow circles. Using census data and visually inspecting the properties we determined that these properties were HUD, Housing Authority or other government sponsored dwelling units. The purpose of our inquiry was to determine the location and number of remaining residents that were not in physical dwelling units provided by a governmental agency. The objective was to establish a replacement housing goal for those residents who lived in substandard privately controlled housing units outside of the marked yellow circles. We believe that at least those who currently live in government housing (63%) accepted by all of the taxing authorities of the CRA including Miami -Dade County. They continue as part of the guiding principles of the 2004 amended plan passed by the CRA Board but not yet approved by the Miami -Dade County Commission The .Metropolitan Center of Florida international University, Thirty Year Retrospective, August 2007 16 gar p o ecteo rc�rn any :t rictttattons tra market price as a result of g p sysicat development in Overtown. Moreover, Jack Luft and Associates have drilled dowrt €vcn further and concluded that over SO o attic number of 2,792 ltonsi_rt . units in Overtown as of the 2000 census is `restricted" sale or rental price structure due to public subsidies that were provided for their development and/ or rehabilitation_" Among their other findings: 1. 42% of all housing units in Overtown were government assisted (1.168 out of 2.792 as reported in 2002 by the Miami -Dade Planning Department).15 2. The City of Miami has assisted in the rehabilitation and construction of an additional 341 units.' 3. An additional 717 publicly assisted units have been developed since 2002.11 4. There are currently 2,226 units in Overtown that have been publicly assisted, almost all of which have restrictions related to rent, sale price and income.'$ "Jack Luft Associates- Consultants to Sawver's Walk work slimlied in hiblioorraphy Attachment "A'. G Attachment "B" Schedule includes Tuscan vices 374 units: St. Agnes Homeownership 92 units: Carrie Meek Elderly 40 units: Miami River 211 units Jack Luft cited. 7 s a r in of these ftndinL?s, 's'1'e €It7 no iinticipate a gentrifcation in the c',°iisting housing base in Overto:a, On the contrary, we note a number of ongoing rehabilitation projects such as the LiSC 1 own Park rehabilitation project, The Manhattan low income rehabilitation projects, the Habitat for Piaimatuty sistglca family Milli projects, and the Solomon Yukon rental rehabilitation projects and the Tuscan View elderly project to name but a few. What we have not seen are the sorely needed workforce housing projects started. RECENT CII"YOF M.f#.AMIOVERFOV4NHOUSING ASSISTAN i °3 rc .. - �.. -- 2E1) zt tt"thi't,":tt Conclusion For almost 30 years Overtown has been under an official redevelopment plan. Since the 1979 Redevelopment Plan which was the basis for the acquisition of and clearing of land for the Sawyer's Walk and other projects now rest upon; the City and community have been unable to attract significant large scale development. If successful, Sawyer's Walk will invest over $200 million in private development capital. The project will bring 1050 workforce housing units to Overtown, up 334 of which will be affordable to those earning at or below 150% of the area median income or $72,300.19 The project will also produce enough tax increment to raise 40 million in bond financing for other affordable projects. The Sawyer's Walk project is also the centerpiece of planned redevelopment projects totaling over $700 million within a half mile Area Median Income as reported by HUD in 2002 for Miami Dade County was $48.200 annually. 18 radius og slag 1<vric Theater. About $60 million o#'these projects have been completed including 128 tax credit residential units (Solomon Yukon), The $6 million Lyric Theater expansion and the 17 story County Transit village office complex inclusive of p:arki,tg deck. The Jazz Village Project was approved by the CR1\ in July 2007 for 70 low income rental units and 41 workforce ior-stale condo units. "-Be Overall Fond ife District project is expected to yield (inclusive of the Sa' yer's Walk Project) 2,344 units to include 538 low income, tax credit rental units and 1536 fear -sale units affordable to those making 150",4, or below the area median income. Saww°yer's Walk is expected to provide an additional 334 units that wwill be provided to the public at below market rate according to the discretion of the City and .kliami-Dade County who have options to purchase these. Fifty of these units will be given to the City by Sawyer's Walk at no cost as payment for development rights. There are those who suggest that given the current economic plight of existing Overtown residents, no outside investment is desirable. in a report "Inventory of Basic Housing Needs for Current. Residents of Overtown" done for Power U. Jaap Vos concludes: "The only (underline nine) way to recreate a viable conamunit}' is to have a long term plan that in the first phase focuses solely on improving educational, economic and political opportunities for current residents. Traditional redevelopment should be prevented (underline mine) until current residents have had opportunities to improve their basic standard of living. What is needed is a community development strategy that focuses on human capital building not on the import of capital through outside investment and new residents."2° (bold type theirs) History, experience and logic have all proven this argument to be untenable. The logic associated with this argument marginalizes people who except for the quality of their physical surroundings and some census data are productive, hardworking and deserve the same quality of life that someone living in Coral Gables or Coral Springs desires. We believe that one has to be able to see the trees along with the forest and provide opportunities for decent housing in the near term however and whenever possible. The notion that zero plus zero equals three has not been the experience that any successful redeveloped community has had anywhere in the nation or world. Poor communities simple don't raise themselves up by their own boots straps. Any beginning urban and regional economics class teaches us that communities prosper only by connecting and exporting goods, labor and services and not in economic isolation. Overtown and other disinvested communities such as Liberty City have had at least 30 years of economic development programs and experienced decline for the same number of years. Without connecting these resources to outside investment there is no traction with the mainstream economies and these efforts fail from within. 2 Jaap Vos 19 Housing affordabiiity has.&rown larger- and not smaller over the last 30 years, 'There is all oppornuuty cost associsited with assuming that today's pro forrnas can he used as the basis .for tomorrow's projects. There is an inherent #allocy involved in thinking that by not actin=g today we .an ensure our future tomorrow. What happens in Overtown will not dictate what will happen .in today's or tomorrow's housing market. Poor will never become attractive to private capital until something attractive happens in the interim. Ahnost reminiscent of the Kerner report of the 1960's, .1=1Ci's Metropolitan Center issued a stern warning otn the consequences of inaction in their recent report on the disparity of Blacks in Miami Dade County; This report shows that Miami -Dade County's Blacks are still plagued by poverty and disparity. if Miami -Dade government does not work to reverse the factors that ha -ye led to the "Brain Drain," poverty within the Black community will perpetuate, "Thus, if out migration of young .Back professionals, is not stemmed. Miami-Dade's Black communities will deteriorate into a haven of the Black underclass. This would further marginalize Miami-Dade's Blacks from the rest of the coinmu.nity. We believe that Overtown and its residents will become further isolated and isolated from the mainstream of economic activity if Sawyers Walk and similar projects are prevented from becoming reality. ?vttviAP study key findings 20 List o .reso.urccs Ri?hert t_:} a, e I..,esset- & Cu, "in. -ket Analysis for Smart Cyrowttt in Overtown," October, 2001 C�otlins Center for Public Policy, "Overtown Housing Capacity Study-," September, 200* Overtown Master Platt, Source Arduitectonica for Crosswinds Cos inanities, 2004 Collins Center for Public Policy, "E' Articulation Report," May 2005 Goodkin Consulting, Updated Market Research Study for Cr-sswhids Condo ntinivan Residential Development, July 2006 Goodkin Consulting, Market Research Study for Crosswinds Condominium Residential Development_ June 2005 Jaap Vos et al. "Inventory of Basic Housing Needs" Prepared for Power U. March 2006 Clyde Judson and Partners. Folldite Village Study- drawings for the Collins Center for Public Policy, April, 2007 D.S. Bureau of the Census„ data Luft Consulting Inc, on Sawyer's Walk MUSP, for Crosswinds Conirnunities Southeast Overtown Park \Vest CRA Redevelopment Plan, December, 1982 Proposed Amended Southeast Overtown Park West CRA Redevelopment Plan, November, 2004 Gannett Fleming, Draft Environmental Assessment, Overtown Station Area Redevelopment, 2006 Social Compact, Washington, D.C., Neighborhood Driltdown Miami, data Metropolitan Center, FILL Miami, Florida, "Thirty- Year Retrospective, the status of the Black Community in Miami Dade County," for the .Metro Miami Action Plan, August, 2007 Miami Herald, "Dade's Black middle class coming north," Saturday, July 28, 2007. 21