The URL can be used to link to this page

Home My WebLink About12-00336 Submittal - Executive Summary Lyric DevelopmentEXECUTIVE SUMMARY DEVELOPMENT AGREEMENT WITH LYRIC DEVELOPMENT, LLC DEVELOPER: Lyric Development, LLC, a Florida limited liability company (the "Developer"). The Developer is an affiliate of Gatehouse Group, LLC, a Massachusetts limited liability company and is controlled by Mark S. Plonskier and David J. Canepari PROPERTY: Portions of Block 25 and Block 36 PROJECT The Project is to consist of the following four Phases: DESCRIPTION: (a) Phase I will consist of between 90 and 100 affordable rental units and approximately 5,000 square feet of commercial space along northwest 2"a Avenue to be located on a portion of Block 25. Phase I will not exceed 8 stories in height and will not include more than 17% one bedroom units and not less than 25% three bedroom units ("Phase I"). (b) Phase II will consist of approximately 80-120 residential units to be constructed in a building not to exceed 12 stories and will be located on a portion of Block 25. Phase II will consist of one bedroom units, two bedroom units and three bedroom units, the mix and size of which shall be established based upon market conditions ("Phase II"). Phase III will consist of a public parking garage containing approximately 300 parking spaces to be built on a portion of Block 36 (the "Parking Garage"). The Parking Garage will be owned by the CRA. Approximately 50 parking spaces, ground level with the Parking Garage, will be allocated for the exclusive use in connection with Phase IV. The balance of the Parking Garage will be operated by the CRA, or its designee, as a public parking garage with parking spaces to be made available for use by members of the International Longshoreman's Association Local 1416 and the general public attending events at Lyric Theatre. Charges for use of the public portion of the Parking Garage will be determined by the operator of the Parking Garage retained by the CRA ("Phase III"). (d) Phase IV will consist of between 25,000 and 37,000 square feet of commercial space with a sufficient number of parking spaces to comply with applicable zoning to be located on a portion of Block 36 ("Phase IV"). COMMUNITY With respect to each Phase, the Developer is required to present INPUT: Schematic Design Documents to the Historic Overtown Folk Life District Improvement Association ("HOFLDIA") and the Overtown Community Oversight Board ("OCOB") for their review and comment. The Developer is to revise the Schematic Design Documents for each Submitted into the public record in connection with item #8 on 03/29/12. Priscilla A. Thompson City Clerk (e) Phase to address reasonable comments and concerns of HOFLDIA and OCOB. CRA APPROVAL The Developer is required to submit to the Executive Director for OF DESIGN: approval the Schematic Design Documents for each Phase taking into account the concerns of HOFLDIA and OCOB, which approval is not to be unreasonably withheld. In addition, the Developer is required to submit to the Executive Director for approval the plans and specifications for each Phase for review and approval which approval will not be unreasonably withheld and which approval will be given if the plans and specifications are consistent with the Schematic Design Documents approved for such Phase. COMPLETION A. Phase I is to commence within 450 days of the execution of the DATES: Development Agreement and to be completed within 16 months from commencement of construction. B. Phase II is to be commence within 6 years from the execution of the Development Agreement and completed within 16 months thereafter. C. Phase III is to be commenced within 5 years from the date the CRA finalizes the Reverter Settlement Agreement with the County and completed within 12 months thereafter. D. Phase IV is to be commenced within 5 years from the date of the Reverter Settlement with the County and completed within 16 months thereafter. PARTICIPATION A. The Developer is required to cause the general contractor to hire not REQUIREMENTS: less than 20% of the subcontractors for each Phase utilizing subcontractors who have their principal place of business either in the Redevelopment Area or the City. B. The Developer is required to have the general contractor and all subcontractors for each Phase to hire 40% of the unskilled labor for construction of the applicable Phase from workers residing either in the Redevelopment Area or the City. AFFORDABLE The Affordable Housing Restrictions only apply to Phase I of the HOUSING Project. Developer is required to rent 50% of the Units in Phase I to REQUIREMENTS: qualified households with a gross income below 60% of Miami -Dade County mean income and rent the balance of the Unit to qualified renters with a gross income of not more than 120% of the Miami -Dade County mean income. The Phase I Property will be restricted to affordable resident requirements for a period of 15 years from the completion of Phase I. PHASE I A. The CRA will contribute up to $10,000,000.00 for the construction DEVELOPMENT: of Phase I together with the land. The amount of the CRA Contribution will be determined initially based upon the budget for Phase I. Upon completion of Phase I an independent third party Submitted into the public 2 record in connection with item #8 on 03/29/12. Priscilla A. Thompson City Clerk PHASE II PHASE III accounting firm will be retained by the CRA to prepare a Cost Certificate based upon the costs and expenses incurred in achieving completion of Phase I. Based upon this Cost Certificate, the amount of the CRA Contribution will be adjusted downward so that the total developer fee, developer overhead and profit with respect to Phase I, will not exceed what is typical for transactions of this nature. B. The CRA will have approval over the Phase I Project Budget, Phase I Loan Commitment, Phase I Construction Contract and Developer Equity. C. The CRA will enter into a Funding Agreement with the Developer, Developer's Lender and the Institutional Investors providing the equity (the "Phase I Funding Agreement") which will govern the disbursement of the $10,000,000.00 CRA Contribution for Phase Il. A. Other than the contribution of the land for Phase II the CRA is not making any other financial contributions with respect to Phase II. B. The Executive Director has approval rights with respect to the Schematic Design Documents for Phase II and the Plans and Specifications for Phase II. In addition, the Executive Director has approval rights over the Construction Contract, the Loan Commitment for Phase II and Developer's Equity for Phase II to assure the CRA that the Developer is ready to commence construction on the closing date with respect to Phase II. A. The CRA will contribute up to $3,000,000.00 for the construction of Phase III to the extent the cost for construction of the Parking Garage exceeds $3,000,000.00, the Developer will be required to pay the balance. B. The Developer will be required to pay 17% of the cost to maintain the Parking Garage based upon Developer's use of 17% of the parking spaces included in the Parking Garage. C. The Executive Director has approval rights with respect to the Schematic Design Documents for Phase III and the Plans and Specifications for Phase III. In addition, the Executive Director has approval rights over the Construction Contract, the Loan Commitment for Phase III and Developer's Equity for Phase III to assure the CRA that the Developer is ready to commence construction on the closing date with respect to Phase III. D. The ability of the Developer to proceed with Phase III is subject to Developer satisfying all the conditions precedent with respect to Phase III. PHASE IV A. Other than the contribution of the land for Phase IV the CRA is not making any other financial contributions with respect to Phase IV. B. The Executive Director has approval rights with respect to the Submitted into the public record in connection with 3 item #8 on 03/29/12. Priscilla A. Thompson City Clerk Schematic Design Documents for Phase IV and the Plans and Specifications for Phase IV. In addition, the Executive Director has approval rights over the Construction Contract, the Loan Commitment for Phase IV and Developer's Equity for Phase IV to assure the CRA that the Developer is ready to commence construction on the closing date with respect to Phase IV. 4 #11103081_v1 Submitted into the public record in connection with item #8 on 03/29/12. Priscilla A. Thompson City Clerk