HomeMy WebLinkAboutSubmittal-Sawyers Walk and the Sawyers Walk Project,l
R A
COLLINS CENTER
f f3R I'1 (113 POLICY
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 2007
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEMp r' ON �a-is -o».
-oowgmv!- Sub#r61.1— Sa.w
u)a l
s , (.UGi I v� he J� w ye r}
ifrjeC1
COLLINS CENTER
Executive Summary
Submitted Into the public'
recoil in connectionh1
item z._... 1— on ,L? n
Priscilla A. C� ��
The Sawyer's Walk 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 Overtown residents might benefit from 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 rented 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 we 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 recognizable' 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.2 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.
Soine such as Michael Porter from the Harvard Business School would argue that there is robust and underserved
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 new market rate investment in over 20 years while all of its neighbors have.
2
COLLINS CENTER
IJh r\)o.U. ro11cY
Over the past decade, cities across America have been rediscovering their core neighborhoods.
Areas once verging on abandonment are seeing new life returning to their streets. In 1960 more
than 40,000 made their home in Overtown. Today it has shrunk to less than a quarter of that
population. In many respects Overtown's decline is the result of public policies. Elevated
Interstate highways have cut it up and cut it off from surrounding 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 back lot for locating
downtown —serving utilities and activities. In times 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. In a 2002
study done by Charles Lesser, it was estimated that there were 399,000 jobs within a five mile
radius of Overtown. More recent market analyses reconfirm these statistics and point to
Overtown as the "hole in the donut" of economic vitality.3 To create a viable Overtown, there
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.
SUBMITTED INTO THE
PUBLIC RECORD FOR
LTEM!zj1ONi?
3 Charles Lesser private consultant study for the Collins Center for Public Policy in September of 2001
3
COLLINS CENTER
inu rnrnc. roi icy
Figure # 1
Hole in the Donut
P ERFOFP ERFOR MING
ARTS CENTER
The neighborhood is connected to many of these surrounding centers of employment, recreation
and entertainment via multimodal transportation systems to include Metrorail, Metromover 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 elements 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.
SUBMITTED INTO THE
PUBLIC RECORD FOR
1TEMvz ti ¢ is-�i
1
COLLINS CENTER
I ti ll P1,61IC rOl IC\
Prioritizing need for resident housing with new and replacement developments
There have been a number of efforts to measure and prioritize the housing need of current
Overtown residents, in order to 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 Collins
Center for Public Policy in September of 2003 when the Sawyer's Walk project was initially
vetted and introduced to the city and neighborhood residents. The study had a number 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
of new and replacement housing for current Overtown residents in the near term, 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 Sawyer's
Walk project is seen as catalytic to this strategy.
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEMPzii 01\11:2_2L.
5
COLLINS CENTER.
ron ruc1.1( r011cr
Figure # 2
Comprehensive Redevelopment Plan
Overtown Master Redevelopment Concept
Collins Center For Public Policy
Using census data, zoning information, aerial photographs, and physical surveys, the Collins
Center attempted to (1) understand the potential population capacity 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:
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEMjONioi .
6
COLLINS CENTER
toe, runtir rnucv
FINDINGS
1. Planning studies in Overtown have shown that a complete build -out of vacant parcels could support the development of over
17,000 units. This number is not including rehabilitation or improvements of existing units.
Analysis conducted by Dover Kohl for the update of the Southeast Overtown / Park West CRA Master Plan showed that
current zoning and available land could support the 17,000-plus new units.
With an average household size of 2.3 persons, full development would increase the Overtown population to
approximately 40,000 people.
2. There are two project areas along NW 3rd Avenue that have vacant parcels or assemblages appropriate for larger -scale mixed -use
development.
3. There are six project areas within Overtown that have vacant parcels or assemblages appropriate for large-scale development.
4. Two existing developed areas, defined by the Town Park complexes and Culmer public housing project, housing an estimated
5,000 of the neighborhood's 8,000 residents, should be inspected to determine whether renovations are required to bring them
up to par with new developments.
• The developed areas of the Town Park communities in North Overtown and Culmer Place in West
Overtown house approximately two-thirds of the residents of Overtown. In these communities, the land is
either owned by municipal government (MDHA) or by their respective cooperative/condominium
associations. The nature of the housing and the land ownership structure create the opportunity for projects
that could impact a large percentage of the population without the concerns of working with multiple land-
owners and the costs of new construction.
5. There is a corridor along NW 2"d Avenue (from NW 12'1' Street to NW 24d' Street) which has a large number of vacant parcels
suitable for the development of infill 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 2"d Avenue corridor would be for smaller -scale
scattered -site and infill. We have seen such development begin to take place through a partnership between
Habitat for the Humanity and Miami -Dade County.
• Housing in this area is owned by absentee landlords, and, in general, the quality of the housing is
questionable at best. Given the large number of the vacant parcels along 2"d Avenue, infill development is
appropriate.
• An estimated 3,000 of Overtown's 8,000 residents live in housing typified by the infill area. Given the lack
of a coordinated housing replacement strategy and the poor condition of the housing stock, re -housing
these residents, is one of the priorities
6. To check the estimate above, we compared the number of units needed by bedroom size to the average household size in
Overtown. This calculation confirms that 3,000 is the number of 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 1970 (for economic and structural
obsolescence). The resulting shortfall of 1, 165 units is then multiplied by Overtown's average household size of 2.3 persons,
yielding approximately 3,000 persons.
Units in Overtown
1-bdrm
2-bdrm
3-bdrm
4-bdrm
5-bdrm+
Totals
Available*
688
459
152
47
9
1355
Demanded
1272
465
555
107
121
2520
Shortfall
-584
-6
-403
-60
-112
-1165
'Existing residential units minus those constructed prior to 1970.
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEMi_ON&i1 0.L.
gIIG'�
COLLINS CENTER
FOP, PUBLIC POLICY
REPLACEMENT COSTS
The following schedule was a historical snapshot of housing replacement costs in 2003 dollars
with an indicated assumption of replacement costs at $120 per square foot:
Square/ft
900
Units In
Overtown 1-bdrm
Available 688
Demanded 1272
1050
2-bdrm
459
465
1100
3-bdrm
152
555
1250
4-bdrm
47
1350
5-bdrm+
9
Totals
1355
107 121 2520
Shortfall -584
-6
-403
-60
-112
-1165
Replacement
Value 2005
Price/so.ft
$ 63,072,000 $ 756,000 $ 53,196,000 $
$ 120.00
9,000,000 $ 18,144,000 $ 144,168,000
Annual cost t
2%
3% 1 4% L 5% 6% 7%
Aggregate replacement
cost by unit size with estimated annual Increases (through y
rs Indicated)
2008
$ 152,818,080
$ 157,143,120
$ 161,468,160
$ 165,793,200
$ 170,118,240
$ 174,443,280
2011
$ 161,987,165
$ 171,286,001
$ 180,844,339
$ 190,662,180
$ 200,739,523
$ 211,076,369
2014
$ 171,706,395
$ 186,701,741
$ 202,545,660
$ 219,261,507
$ 236,872,637
$ 255,402,406
2017
$ 182,008,778
$ 203,504,898
$ 226,851,139
$ 252,150,733
$ 279,509,712
$ 309,036,912
2020
$ 192,929,305
$ 221,820,338
$ 254,073,276
$ 289,973,343
$ 329,821,460
$ 373,934,663
2025
$ 212,222,236
$ 255,093,389
$ 304,887,931
$ 362,466,679
$ 428,767,898
$ 504,811,795
2028
$ 224,955,570
$ 278,051,794
$ 341,474,483
$ 416,836,681
$ 505,946,120
$ 610,822,272
Per -unit replacement cost by size with estimated annual Increases
through years indicated)
2005
$ 108,000
$ 126,000
$ 132,000
$ 150,000
$ 162,000
$ 123,749
2008
$ 114,480
$ 137,340
$ 147,840
$ 172,500
$ 191,160
$ 149,737
2011
$ 121,349
$ 149,701
$ 165,581
$ 198,375
$ 225,569
$ 181,181
2014
$ 128,630
$ 163,174
$ 185,450
$ 228,131
$ 266,171
$ 219,230
2017
$ 136,348
$ 177,859
$ 207,705
$ 262,351
$ 314,082
$ 265,268
2020
$ 144,528
$ 193,867
$ 232,629
$ 301,704
$ 370,617
$ 320,974
2025
$ 158,981
$ 222,947
$ 279,155
$ 377,129
$ 481,802
$ 433,315
2028
$ 168 520
$ 243 012
$ 312 654
$ 433 699
$ 568 526
$ 524 311
At the time of the study, we concluded that the 1,165 units of housing demanded but not
provided translated into in excess of $144 million in replacement costs. To build the same
number of units with 2 percent annual increase would have cost in excess of $212 million over
20 years. Therefore, a sustained but informed effort was needed to build replacement housing in
Overtown.
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:
SUBMITTED INTO THE
PUBLIC RECORD FOF
ITEP Yz...0 _ON
COLLINS CENTER
r P, PVGIIC ro1JC'(
Square/ft
Units in
Overtown
Available
Demanded
Shortfall
Replacement
Value 2005
Price/so.ft
900
1-bdrm
688
1272
-584
1050
2-bdrm
459
465
-6
1100
3-bdrm
152
555
-403
1250
4-bdrm
47
107
-60
1350
5-bdrm+ Totals
9 1355
121 2520
-112 -1165
$ 84,096,000 $ 1,008,000 $ 70,928,000 $ 12,000,000 $ 24,192,000 $ 192,224,000
$ 160.00
Annual cost ?
2% 3% 4% 5% 6% 7%
Aggregate replacement cost by unit size with estimated annual increases (through yrs indicated)
2008
$ 203,757,440
$ 209,524,160
$ 215,290,880
$ 221,057,600
$ 226,824,320
$ 232,591,040
2011
$ 215,982,886
$ 228,381,334
$ 241,125,786
$ 254,216,240
$ 267,652,698
$ 281,435,158
2014
$ 228,941,860
$ 248,935,654
$ 270,060,880
$ 292,348,676
$ 315,830,183
$ 340,536,542
2017
$ 242,678,371
$ 271,339,863
$ 302,468,185
$ 336,200,977
$ 372,679,616
$ 412,049,215
2020
$ 257,239,073
$ 295,760,451
$ 338,764,368
$ 386,631,124
$ 439,761,947
$ 498,579,551
2025
$ 282,962,981
$ 340,124,519
$ 406,517,241
$ 483,288,905
$ 571,690,531
$ 673,082,393
2028
$ 299,940,760
$ 370,735,725
$ 455,299,310
$ 555,782,241
$ 674,594,827
$ 814,429,696
Per -unit replacement cost by size with estimated annual increases (through years indicated)
2005
$ 144,000
$ 168,000
$ 176,000
$ 200,000
$ 216,000
$ 164,999
2008
$ 152,640
$ 183,120
$ 197,120
$ 230,000
$ 254,880
$ 199,649
2011
$ 161,798
$ 199,601
$ 220,774
$ 264,500
$ 300,758
$ 241,575
2014
$ 171,506
$ 217,565
$ 247,267
$ 304,175
$ 354,895
$ 292,306
2017
$ 181,797
$ 237,146
$ 276,939
$ 349,801
$ 418,776
$ 353,690
2020
$ 192,704
$ 258,489
$ 310,172
$ 402,271
$ 494,156
$ 427,965
2025
$ 211,975
$ 297,262
$ 372,207
$ 502,839
$ 642,402
$ 577,753
2028
$ 224,693
$ 324 016
$ 416,871
$ 578 265
$ 758,035
$ 699,081
Using $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. In this context, beneficiaries of badly needed new housing stock need to "push" projects
forward appropriately as opposed to "pulling" them back.
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEMz n ONtz-01.
9
COLLINS CENTER
IOR rn l�l l(. f&I IC1'
Reconciling the need for resident housing with new developments
In aggregate, the Sawyer's Walk project is but one of the projects that is needed to contribute to
the new and replacement housing stock in Overtown. However, without the Sawyer's Walk
project, there is very little housing of scale that can be realized in the near term. The ability of
the major property 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 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. Of the 1,050
proposed units, 50 units will be 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 affordable4 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 $ 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.5 These blocks lie directly to the north of e' street between 8(11
and lestreets and between 2"d avenue and the Metrorail (see Figure #3 below):
SUBMTTED INTO THE
PUBLIC RECORD FOR
17EMPzi� ON�ri=°�
° Affordable to those earning no more than 120% of the area median income.
5 Per statements by the district 5 Commissioner and CRA staff. Minutes from the July, 2003 CRA Board meeting.
10
MOS
N •
CONTENT WE PLAN
c9
?uLIYID>&Y FLAN P01
SAWYER'S A.
w
ice-- p
Lu
N
7.3
CC, CO
CO
COLLINS CENTER
101: PUBLIC rotICY
Taking a further look at potential capacity and planned unit mix in an area adjacent to and
directly to the north of the Sawyer's Walk project, we find an additional 1246 units that could be
built north of 8th street within the defined project area, even if the entirety of block 36 were
dedicated to commercial and cultural activities. The majority of the remaining site control in
blocks 36, 25, Folklife Village, A, and B in Figure # 3, are controlled by the CRA, the Collins
Center and BAME CDC in that order of magnitude.6 These entities have pledged to work
together to bring about a cohesive vision that will be guided by the objectives of the CRA Plan 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 Folklife Village.
SUBMITTED INTO THE
PUBUC RECORD Fc.R
ITEMPzON_L13o7.
6 BAME is a community development corporation associated with Bethel AME church located on 8`I' street just east
of 1-95. The Collins Center for Public Policy is a non- partisan think-tank which is the author of this report.
12
COLLINS CENTER
fOK rnxuc roue,
-'SITE PLAN � SCALE: 1'=100'
Figure # 4
North Folklife District Area
LEGEND
1. JAll VILLAGE 128 UNITS
2. FUTURE MIXED -USE BUILD -OUT 300 UNITS
3. JACKSON'S SOUL FOOD RESTAURANT
4. HISTORIC MOUNT ZION MISSIONARY BAPTIST CHURCH
5. HISTORIC NEW PROVIDENCE LODGE
6. HISTORIC WARD HOUSE
7. VILLAGE LOFTS 91 UNITS
WI RETAIL AT GROUND FLOOR
8. PARKING GARAGE
9. 10 STORY RESIDENTIAL 150 UNITS
VILLAGE LOFTS
WI RETAIL AT GROUND FLOOR
10. HISTORIC DORSEY HOUSE
11. HISTORIC GREATER BETHELAME CHURCH
12. HISTORIC LONGSHOREMAN HALL
13. 12 STORY RESIDENTIAL 150 UNITS
WI RETAIL AT GROUND FLOOR
14. VILLAGE LOFTS 27 UNITS
WI RETAIL AT GROUND FLOOR
15. FUTURE MIXED -USE BUILD -OUT 100 UNITS
RESIDENTIAL
18. FUTURE MIXED -USE BUILD -OUT 150 UNITS
RESIDENTIAL
BIG BOX RETAIL 60,000 SF
PUBLIC PARKING GARAGE
17. HISTORIC LYRIC THEATER
18. FUTURE MIXED -USE BUILD -OUT 150 UNITS
RESIDENTIAL
HOTEL WI2,000 SEAT AUDITORIUM
PUBLIC PARKING GARAGE
19. HISTORIC BLACK PRECINT MUSEUM
N.W. 11TH ST. AND N.W. 5TH AVE.
20. HISTORIC EBENEZER METHODIST CHURCH
21. HISTORIC JUDGE THOMAS' LAW OFFICE
22. HISTORIC X-RAY CLINIC
N.W. 11TH ST. AND N.W.1ST AVE.
23. FOUNTAIN WATER FEATURE
TOTAL 1,248 UNITS
This area, plus the Sawyer's Walk project area as depicted in Figure # 3, is known as the Folklife
District area. It is projected to yield a number of affordable housing units as according to the
following schedule:
SUBMITTED INTO THE
PUBUC RECORD FOR
lTEMZiiONjj OL•
13
COLLINS CENTER
FOR l'UletIC rood
Folklife District Econonc Development
Figure # 5
Scheduled Buildout
Folklife District
Projected Total Units
;Development Projects (Value at Build Out) 1Mkt+Affdl a Rental workforce
1'Lyric Theater $6,000,0001 N/A
2,Solomon Yukon MU $1QOOQ000( 128 128
3'County Office Bldgs• $85,000,000,' N/A
4 Blk 36-Hotel/retail/resid $200,000,000I 300 100
5, Folklife Village -MU $49,000,000 250
6 3rd Alenue Project -MU $30,000,000' 130
7' 3rd Alenue Commons -MU $25,000,000, 110
8,Bethel Arms Apt -MU 611,700,000 65
9 Land Trust Pads -MU $4000,000 100
10 Crosswinds -MU $ 205,00.0,000! 1050
11 Jazz Nllage $40,000 000= 111
12 Blk 25 - Institutional -MU $50,600,000! 100
Total. $716,300,000. 2344
% of Total; I
•17 and 21-story County office buildings protect at 8th Street
MU - Indicates Mix -use Resldentfal/remll/commerclaf development
50
65
25
70
100
538
22.95%!
200
250
130
Submitted Into the public
reco in connection ri with7
item on i - ,'
Priscilla A. CityThornClerk
Projected Economic
$%. Development
;of total BO Commercial/Retail S.F.
0.84% 23,000
1.40%
11.87%
27.92%
6.84%
4.19%
3.49%
1.63%
75 0.56%
840 28.62%
41 5.58%
7.06%
1536 1.0.0
65.53%
Update June 13, 2008 by Don D. Patterson - BAME Development Copomtfon of South Florida
10,000
744,000
175,000
20, 000
30,000
25,000
15,000
10,000
75,000
67,500
1,194,500
Estimated
Completion Date
Year Start/Finish
2004/2009
2005/2006
2005/2010
2007/2009
2007/2009
2007/2009
2007/2009
2007/2010
2007/2011
2007/2012
2008/2010
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 2,300
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.
7 Social Compact Reports the number of Owner occupied units in Overtown as 18% while the census data reports
the number as under 10%
14
COLLINS CENTEft
{OI: I•Usuc rcIlci'
Gubmitted Into the public
recorfiii in,conneCtion with,
item Z l i on I
Priscilla A. Thompson
City Clerk
The data also suggest the fulfillment of the objectives of all of the previous redevelopment plans
with respect to achieving a mixed -income community.8 In short, there is a comprehensive set of
benefits that flow from new development in the Folklife Village District of which the Sawyer's
Walk project represents 28% of the total buildout (see Figure # 3 and 5).
To be sure, a number of projects on Figure # 5 have either been completed or approved by the
appropriate agency. For instance, Miami Dade County has just completed one of the county
office buildings (line item 3) as part of the transit village development.9 This project is bringing
approximately 2,300 employees daily to the area. These employees are part of the new workforce
housing market that the Folklife 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 entertainment
centerpiece of the Folklife District Village. Jazz Village, a mixed -use, mixed -income project
(line 11) 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 of the redevelopment objective.10 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 be 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 climate for private reinvestment in the area."
8 A complete list of these objectives is provided in the attached appendix
9 This office building is built adjacent to the Metrorail transit stop at 8th Street.
f0 These objectives are carried through to the 2004 plan as a guiding principle.
12 Source: Overtown Redevelopment Plan, 1982 excerpted from the amended plan of 2004. These 1979 objectives
were incorporated into the 1982 redevelopment plan which is today the only official document that has been
accepted by all of the taxing authorities of the CRA including Miami -Dade County.
15
COLLINS CENTER
IOU I•UGLIC POLICY
Submitted Into the public
reco in connection with
item Z on [Z-13 - 07
Priscilla A. Thompson
City Clerk
A recent report done by Florida International University's Metropolitan Center for the Metro -
Miami Action Plan 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.12
This group, earning mostly between $60,000 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
# 1).
The Sawyer's Walk project will offer between 210 to 334 units to people who earn 140% of the
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 of the 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 of the Overtown of old, the Black middle class was the driver of
the culture and the economy of the 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 will 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 of Overtown'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.
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
12 The Metropolitan Center of Florida International University, Thirty Year Retrospective, August, 2007
16
COLLINS CENTER
rOr. rURI IC Ppl lr'v
6llbtroittedi into ptEAC
reC;oi it .connectlort
item KZ [ 1 on L 7
Ps stifla Thompson
City Clack
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%) are protected from any
fluctuations in market price as a result of improving physical development in Overtown.
(;ove►-ninent Assisted !lousing
within (;)vcrtown Study Area
IYtfiairrtsi-Iaaeie Connty, 2002
Rental
}_)} i.A Assisted 320
City Assisted (?
Tax Credit 4} )
11l_J1:) Special Needs 245
Section 8 Vouchers
through Tv1C)i-IA I }t
through fVtl311i1
} }esrrrec)wnership Unity;_
}"catal l . 1 68
stair Miami -I )side Comity I lousing Agency tt'4i)1fi1.). f Icrxida
t t,,,trsiu * 1,ia rocs (.;a,rpurtttlon; Miami -Dade t rousing Fitntnee
:Atha+city; City t,(°Hinlectt:r_ t.'it.y c,t"Homestead, City t,r htiznn :
NA3atnti 1.3enCar HousingAuthority: t:Il%- of Miami Ueiteli,
te;cartutrunitylt';ca,nonnic t)evele,ttrtaent. Dt'paattment, t,tousilely
I)ivisir,ra; Homestead l sousing Authority; Once a,f C'Of mammy
Arid Eeornc,n)ie Development; and Nititarni-t)ade County.
i.:)et,artrnern +.i` Planning and Zoning, Re enrsett Section. 2094.
Moreover, Jack Luft and Associates have drilled down even further and concluded that over 80%
of the number of 2,792 housing 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.13 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).14
2. The City of Miami has assisted in the rehabilitation and
construction of an additional 341 units.l5
3. An additional 717 publicly assisted units have been developed
since 2002.16
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.17
13 Jack Luft Associates- Consultants to Sawyer's Walk work supplied in bibliography
"Attachment "A"
15 Attachment "B"
16 Schedule includes Tuscan view 374 units; St. Agnes Homeownership 92 units; Carrie Meek Elderly 40 units;
Miami River 211 units
17 Jack Luft cited.
17
COLLINS CENTER
[OK rb6LIC r(11C'i
Submitted Into the public
reco n. connection with
item z- I 1 on I Z-i 0l
Priscilla A. Thompson
City Clerk
As a result of these findings, we do not anticipate a gentrification in the existing housing base in
Overtown. On the contrary, we note a number of ongoing rehabilitation projects such as the
LISC Town Park rehabilitation project, The Manhattan low income rehabilitation projects, the
Habitat for Humanity single family infill 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.
ATTACHMENT 13
RECENT CITY OF MIAMI OVERTOWN HOUSING ASSISTANCE
9 NW 9tt' Street 92 unit' rental rehabilitation
620 NW 2tth Street =3o twit. homeownership (under construction)
1 229 NW 1'e Court 13 unit rental rehabilitation
St John Village 14 unit homeownership
219 NW 16th Street 6 unit rental rehabilitation
240 NW 17th Street 9 unit rental rehabilitation
230 N W 20`t' Street 1 3 7 unit rental rehabilitation
200 N W 16'r' Street 16 unit rental rehabilitation
1234 NW 4th Ave 7 Units Sunshine Condominium
Habitat tier Humanity 19 unit homeownership
FStat Number o1.Units -• 341
Source
Conclusion
City of Miami Department of Cominu.nity Development
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 1,050 workforce housing units to
Overtown, up 334 of which will be affordable to those earning at or below 140% of the area
median income or $72,300.18 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 of
radius of the Lyric Theater.
18 Area Median Income as reported by HUD in 2002 for Miami Dade County was $48,200 annually.
18
OLLINS CENTER
UM1 PLR11!; N111C1
Submitted Into the public
recorA in connection y
itern Zli on IZ-IP- u7
Priscilla A. Thompson
City Clerk
About $60 million of 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 parking deck. The Jazz Village Project was approved by the
CRA in July 2007 for 70 low income rental units and 41 workforce for -sale condo units. The
Overall Folklife District project is expected to yield (inclusive of the Sawyer's Walk Project)
2,344 units to include 538 low income, tax credit rental units and 1,536 for -sale units affordable
to those making 150% or below the area median income. Sawyer's Walk is expected to provide
an additional 334 units that will be provided to the public at below market rate according to the
discretion of the City and Miami -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 mine) way to recreate a viable community 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."19 (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 simply
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.
19 Jaap Vos
19
COLLINS CENTER
ion rti 1 1ni1CY
Housing affordability has grown larger and not smaller over the last 30 years. There is an
opportunity cost associated with assuming that today's pro formas can be used as the basis for
tomorrow's projects. There is an inherent fallacy involved in thinking that by not acting today
we can ensure our future tomorrow. What happens in Overtown will not dictate what will
happen in today's or tomorrow's housing market. Poor surroundings will never become
attractive to private capital until something attractive happens in the interim.
Almost reminiscent of the Kerner report of the 1960's, FIU's Metropolitan Center issued a stern
warning on 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 have led to the "Brain Drain," poverty within the Black community will
perpetuate. Thus, if out migration of young Black 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 community.20
Accordingly, 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.
SUBMITTED INTO THE
PUBUC RECORD FOR
LTEuONI
20 MMAP study key findings
20
COLLINS CENTER
f Uf. rvriiruuC,
List of Resources
Robert Charles Lesser & Co, "Initial Market Analysis for Smart Growth in Overtown," October,
2001
Collins Center for Public Policy, "Overtown Housing Capacity Study," September, 2003
Overtown Master Plan, Source Arquitectonica for Crosswinds Communities, 2004
Collins Center for Public Policy, "E3 Articulation Report," May 2005
Goodkin Consulting, Updated Market Research Study for Crosswinds Condominium 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, Folklife Village Study- drawings for the Collins Center for Public
Policy, April, 2007
U.S. Bureau of the Census, data
Luft Consulting Inc, on Sawyer's Walk MUSP, for Crosswinds Communities
Southeast Overtown Park West 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 Drilldown Miami, data
Metropolitan Center, FIU, 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.
Submitted into the pu L C
recopl In connection tt - 1
stern r_..�ion
Priscilla A. C ity Clerk
21