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HomeMy WebLinkAboutSummary FormDate: 08/06/08 AGENDA ITEM SUMMARY FORM FILE ID: 08" cOsl S PH.6 Requesting Department: Community Development Commission Meeting Date: 09/11/08 District Impacted: Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other Subject: Encumbrance of property located at 1035 N. Miami Avenue, Miami, Florida. Purpose of Item: AUTHORIZING 1035 NORTH MIAMI AVENUE, LLC (THE "PROPERTY OWNER") TO ENCUMBER THE PROPERTY, LOCATED AT 1035 N. MIAMI AVENUE, MIAMI, FLORIDA (THE "PROPERTY"), LEGALLY DESCRIBED IN EXHIBIT "A", ATTACHED AND INCORPORATED, BY SECURING A MORTGAGE LOAN WITH BBU BANK, TO COMPLETE THE REHABILITATION OF THE PROPERTY. Background Information: Please see attached. Budget Impact Analysis Is this item related to revenue? Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: C!P Project No: Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: Dept. Director Chief City Manager Final Approvals (SIGN AND DATE) Page 1 of 1 AGENDA ITEM SUMMARY FORM CONTINUED Background Information: Pursuant to Resolution No. 05-0382, adopted June 9, 2005, the Miami City Commission authorized the allocation of 31st Program Year Community Development Block Grant ("CDBG") funds, in the amount of $100,000, to Downtown Miami Partnership, Inc. ("DMP"), for Commercial Facade Treatment/Commercial Code Compliance activities for 2005-2006. Pursuant to Resolution No. 05-0477, adopted July 28, 2005, the Miami City Commission authorized the transfer of CDBG funds, in the amount of $20,000, to DMP, to continue to provide Commercial Facade Treatment/Commercial Code Compliance Activities in District 2. Pursuant to Resolution No. 05-0684, adopted November 17, 2005, the Miami City Commission amended Resolution No. 05-0382, adopted June 9, 2005, and Resolution No. 05-0477, adopted July 28, 2005, by changing DMP's activity description and services on the attachments of each resolution from Commercial Facade Treatment/Commercial Code Compliance to "for the implementation of an Urban Neighborhood Job Creation Program which will provide rehabilitation of building exteriors and job creation opportunities for City of Miami residents". Said resolution authorized the transfer of CDBG funds, in the amount of $500,000, to DMP, for construction costs associated with the rehabilitation of building exteriors. 1035 NORTH MIAMI AVENUE, LLC ("Property Owner") is a program participant of the Urban Neighborhood Job Creation Program, providing rehabilitation to the building located at 1035 N. Miami Avenue, Miami, Florida ("the Property"). As a Program participant, 1035 North Miami Avenue, LLC, was assisted with $75,000 funding to replace the windows on the Property. Two tenants are nearly complete with their store build -out, however, a building Certificate of Occupancy is required before they are able to move in. In order to complete the rehabilitation of the property and obtain a Certificate of Occupancy, the owner will need an additional $250,000, which he/she is seeking funding by securing an additional mortgage on the property through BBU Bank, a state chartered bank. On June 28, 2007, a Declaration of Restrictive Covenants was executed between the Property Owner and the City, which in Section 4 stated, "Property Owner covenants and agrees not to encumber or convey any interest in the Property without the prior written consent of the City". The completion of the rehabilitated property will result in the creation of two new businesses to provide at least six jobs for low to moderate income residents as required in their executed covenant. The Administration recommends authorizing the 1035 NORTH MIAMI AVENUE, LLC to encumber 1035 N. Miami Avenue, Miami, Florida, legally described in Exhibit "A", attached and incorporated, by securing a mortgage loan with BBU Bank, to complete the rehabilitation of said property.