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HomeMy WebLinkAboutSEOPW OMNI CRA 2005-01-22 Discussion ItemHIGHLIGHTS OF THE SETTLEMENT AGREEMENT BY AND BETWEEN SAWYER'S WALK, LTD. ("SAWYER'S WALK"), POINCIANA VILLAGE AND MIAMI, LTD. ("POINCIANA"), SOUTHEAST/OVERTOWN PARKWEST REDEVELOPMENT AGENCY ("CRA") AND THE CITY OF MIAMI ("CITY"). PROPOSED DEVELOPMENT: The proposed development, which will be constructed in phases on the property (the "Property"), shall consist of approximately 1,050 residential units consisting of townhouses, lofts, live/work units, mid -rise structures, high-rise structures and approximately 75,000 square feet of retail office space (the "Project"). DEVELOPER: Sawyer's Walk, Ltd. TIME FRAME: The Developer shall commence construction of the Project after obtaining MUSP approval, which is anticipated to occur on or before March 15, 2006 and complete construction within five (5) years. PRICE RANGE: Residential units, excluding townhouses, lofts and live/work units, will initially sell for between $130,000.00 and $300,000.00. AFFORDABLE HOUSING: The Developer is required to include twenty percent (20%) for the residential units comprising the affordable housing units as part of the Project (the "Affordable Units"), of which fifty (50) units shall be Subsidized Units, as defined below. Developer will be required to sell Affordable Units to qualified buyers whose gross income is between 80.01% and 120% of the Miami -Dade County mean income (the "Affordable Housing Requirement"). This is a mandatory requirement. Failure to comply will result in a minimum penalty of Twenty Thousand and No/00 Dollars ($20,000.00) per unit. SUBSIDIZED HOUSING: The Developer is required to convey a total of fifty (50) units to the CRA or its designee upon the completion of phase (the "Subsidized Units"). The CRA shall sell the Subsidized Units to purchasers whose gross income is not greater than eight percent (80%) of the Miami -Dade County median income. OVERTOWN RESIDENTS: Existing Overtown residents are given priority with respect to the sale of Affordable Units and Subsidized Units. 646/4 • FORMER OVERTOWN RESIDENTS: The Developer is required to use its best efforts to sell twenty percent (20%) of the units in the Project to former Overtown residents or their family members. Any sale of a unit to a former Overtown resident or a family member of a former Overtown resident shall qualify towards the Affordable Housing Requirement, notwithstanding their income level. JOBS: Mandatory minority participation is required as follows: Construction 28% Black Participation 8% Female Participation 15% Hispanic Participation Design 10% Black Participation 5% Female Participation 10% Hispanic Participation Property Management 28% Black Participation 8% Female Participation 15% Hispanic Participation Developer's Sales and Marketing Staff 20% Black Participation PENALTIES: Penalties apply for failure to meet minimum minority participation requirements apply on a per phase basis. FIRST SOURCE HIRING AGREEMENT: The Developer is required to enter into a First Source Hiring Agreement requiring priority be given first to Overtown residents and then to residents of the City with respect to hiring for positions related to the Project. CONSTRUCTION EMPLOYMENT TRAINING PROGRAM: Developer, in coordination with the South Florida Work Force or such similar job creation and training program, shall establish a "Skills Training and Employment Program" which shall provide for training of construction personnel for residents in the CRA Redevelopment Area and in the City. PROPERTY MANAGEMENT TRAINING PROGRAM: Developer, in coordination with the South Florida Work Force or such similar job creation and training program, shall establish a "Skills Training and Employment 2 • • Program" which shall provide for training of property management personnel for residents in the CRA Redevelopment Area and in the City. CONTINGENCIES: There are certain contingencies in the Settlement Agreement, which, if not satisfied, will enable the City and the CRA or the Developer to terminate the Settlement Agreement. # 2516698_v2 3 SOUTHEAST OVERTOWN/PAR,. NEST COMMUNITY REDEVELOPMENT AGENCY CITY OF MIAMI The designs indicated in these drawings are property of Arquitectonica International. All copyrights reserved 2005. 02005 Arquitectonico International. Inc. ikc2SNVIINIDS COMMUNITIES AROUITECTONICA OVERTOWN URBAN VILLAGE SUMMARY OF SETTLEMENT AGREEMENT AND LEASE FOR SOUTHEAST OVERTOWN PARK/WEST BLOCKS 45, 46(pt.), 55 & 56 • Crosswinds Communities, Inc., one of America's leading independent builders and developers, has acquired controlling interest in Sawyer's Walk Limited, which was selected by the City of Miami to develop the three and a half blocks. Crosswinds' initiative will result in a settlement of the long standing lawsuits between the City of Miami and Sawyer's Walk Limited. Proposed public incentives for this project include the lease/sale of the property at a fair market value, based on the proposed development plan and the allocation to the project of Tax Increment Funds generated exclusively from this development through 2013 for parking and infrastructure improvements. • The Overtown Village Project entails the construction of approximately 1,050 residential units for home ownership and 75,000 square feet of commercial space on currently vacant land bounded by N.W. 6th Street , N.W. 8th Street, N.W. 1st Court, and N.W. 3rd Avenue. • The proposed 1,050 residential units will be comprised of a mixture of housing types, including live/work town homes (two to four stories), and mid -rise structures (eight to seventeen stories). The development will include a mixture of studio, one, two, and three bedroom units and will have an array of amenities, including structured parking, swimming pools, and recreational areas. • The project's overall focus will be on creating homeownership housing opportunities for individuals and families whose respective incomes will range from $40,000 to $90,000. The anticipated current price of these units will range from $130,000 to $300,000. Sale price of the units will be adjusted during the anticipated four year development program to reflect changes in market conditions, construction, and labor costs. The designs indicated in these dravwings are properly of Arquitectonica International. All copyrights reserved 2004. 02004 Arquitectonica International, Inc. • Twenty percent (20%) of the units excluding live/work townhomes will be set aside as affordable housing restricted to families and individuals whose respective incomes range from 80% to 120% of the Miami -Dade County median family income (in the range of $42,150 - $63,240 for a family of four). These units will be reasonably interspersed throughout the overall project and be reflective of the unit mix of the project. The developer will be restricted to a maximum selling price for these units regardless of the availability of mortgage assistance through publicly sponsored programs and restrictive covenants will be placed on units not sold to existing or former Overtown residents for ten (10) years); these restrictions will limit the resale price and purchaser income to ensure that these units remain affordable. The anticipated selling price of these units will be in the $130,000 - $200,000 range. Fifty completed housing units will be conveyed by Crosswinds (Sawyer's Walk) to the CRA or its designee (approximately 25% 0f the designated affordable units) and will be set aside exclusively for sale to existing Overtown residents whose incomes range between 50% to 80% of the Miami -Dade County median family income. Overtown residents to qualify for these units will be in the income range of $26,350 - $42,150 for a family of four. It is anticipated that a subsidy for potential homeowners will be provided by a combination of public and private sources. These units will be reasonably interspersed throughout the overall project and be reflective of the unit mix of the project. The James L. Knight Foundation is currently reviewing options for its participation in creating this housing opportunity. • Sawyer's Walk shall utilize its best efforts to sell at least 20% of the housing units to existing, former Overtown residents and their family members. Incentives are provided to meet this objective. • Sawyer's Walk will enter into a "First Source Hiring Agreement" with the City, giving priority consideration for employment to Overtown residents for new jobs created. • Sawyer's Walk will participate in job training programs for construction and property management. Participation in these programs will be offered first to Overtown residents. It is anticipated these programs will be operated by The South Florida Workforce, labor unions, and other existing, qualified providers. • Sawyer's Walk will hire an employment and housing recruiter from the Overtown Community, who will work directly with Overtown residents to assist in linking jobs and housing opportunities for area residents. It is anticipated this office will be established immediately upon approval of the development plan. • Minority contracting, construction, and property management requirements have been established with penalties for non-compliance. • This project will generate over $200 million in private investment and serve as a catalyst to create job opportunities for Overtown residents both directly and indirectly. •The intent of the Sawyer's Walk development team is to become an intrinsic part of the Overtown community and to work closely with residents and community organizations to bring about the renaissance of Overtown. FOR ADDITIONAL INFORMATION PLEASE CONTACT: Matthew D .Schwartz Crosswinds Communities 600 Corporate Drive, Suite 102 Ft Lauderdale, FL 33334 305.256.4130 Rev. Mark Coats Director of Community Affairs Crosswinds Communities/ South Florida Urban Consultants 786-236-4466 Office of City Miami Commission, District V Commissioner Jeffery L. Allen, Commissioner 305-250-5390 C ass. \ Ds COMMUNITIES NW 1OTH STREET 9TH STREET MALL POINCIANA Thydesiggns it icated • i . 1: -tty of Ar Ii tectoni - Internal R at copreserved 2005. <? O5 Arquitnctonicd Intern ol, Inc. LYRIC THEATER SOUTAST OVERTOWN/PARK WEST CONCEPTUAL MASTERPLAN 9TH STREET MAL Mlwlttirl�, en . .6. LEGEND 2 LEVEL TOWNHOUSE WITH 15 LEVEL TOWER ABOVE 2 LEVEL TOWNHOUSES %VTH 6 LEVEL MIURISE ABOVF 4 LEVEL. S: ACKELG LIVE WORK UNITS l TOWNHOUSE COMMERCIAL: RE tAIL PROPOSED TRANSIi'vILLAGE (PROPOSED BY OTHER`+, E%ISTiNcV GREEN SPA HISTORICAL BUU I CHURCHES N HISTORIC AREA (/`4 AREA OF CROSSWINOS'OEVELOPEMENT OVERTOP., TRJ: TT L244CE TT SIPRY E YRtpWH Tauo�* wcetiwr I'SINN GMh+E rVA14V SeRVE 141 Grow Miami Fund The Grow Miami Fund is a unique economic development partnership between the City of Miami's Community Redevelopment Agency and the Grow America Fund, Inc. (GAF). GAF is a wholly -owned affiliate of the National Development Council (NDC), a CDFI (Community Development Financial Institution) and a CDE (Community. Development Entity) under the US. Department of Treasury Community Development Financial Institutions and New Markets Tax Credits programs. NDC is a non-profit organization engaged in activities that result in the creation of jobs and economic opportunities, as well as affordable housing and other public projects in more than 120 Communities throughout the US. New Hope Mills' Dale How the Fund Operates The City of Miami has capitalized the Grow Miami Fund with an investment into GAF that is targeted to assist eligible small businesses within the boundaries of the Southeast Overtown and Omni Community Redevelopment Areas of the City of Miami. In order to qualify for these loans, the businesses must also be engaged in a legitimate for -profit business activity and have the ability to create permanent jobs in the community. The Fund will look to finance healthy, successful, small businesses that need expansion capital to reach their full growth potential. Loans made under this program will be guaranteed by the SBA under GAF's Small Business Lending Company (SBLC) designation. As such, each loan must comply with SBA guidelines and procedures. GAF and City of Miami staff are well equipped to make the application process simple and seamless. Once a request for financing is approved, GAF will also close, disburse and service each loan. specifics... Loan Amount, Rate and Term The Grow Miami Fund con make loans ranging from $25,000 to $1 million, at or below market rates, for terms up to 25 years depending on proposed use of funds. Use of Proceeds Loan proceeds may be used for any legitimate business purpose, including working capital, machinery and equipment, acquisition of land and building, construc- tion, renovations and tenant improvements. The Fund, however, does not provide venture capital and cannot provide funds for research and develop- ment or to satisfy equity or near -equity needs. Collateral All loons must be adequately collateralized. Personal guarantees of the owners are required. More on Terms The typical structure: Working Capital : 3-10 (normally 5-7) Machinery & Equipment 5-10 or life of the asset Tenant Improvements: term of the lease Acquisition 8f Real Estate: Up to 25 Years Construction/Renovations: Up to 25 years What does the Fund Offer a Borrower? The Fund offers affordable growth capital on advanta- geous terms to borrowers who create jobs and invest- ment in our community . Does the Fund Compete with Local Banks and Other Lenders? No. The Fund is meant to complement, not replace, existing sources of financing. Therefore, GAF encour- ages the borrower's bgnk or other lenders to partici- pate in providing a portion of the total financing. The Fund always works with existing lenders to struc- ture the best financing available for the borrower. Finally, as any other lender, the Grow Miami Fund will operate according to prudent lending practices. Application Process Information Required CI A brief description of the project, including proposed sources and uses of funds © Corporate Financial Statement or Tax Returns for previous 3 years © Current Financial Statement (may be an in-house statement) Q A Personal Financial Statement of all principals who own more than 20% of company stock A Credit Release, authorizing GAF and the Grow Miami Fund to Obtain personal and corporate credit reports We have made the application process simple straight forward. Our staff is readily available assist you through the application process. If you feel your small business is the type of Aft dynamic and growing business we have been empowered to help succeed, please contact • Antranette Pierre, Chief of Staff at (305) 679- 6800 or via e-mail at apierre@ci.miami.fl.us for an application package. City of Miami Community Redevelopment Agency 49 NW 5th Street, Suite 100 Miami, FL 33138 Phone (305) 679-6800; Fax (305) 679-683$ • Southeast Overt al -irk West Q� CRA Boundary tA I '•-.`F �.�_ • 1, Original Boundary - 1982 Extended Boundary - Present pt-t \‘N qAC) T� (1) sr m)) -33/2 YS—S- ?yc7/ M C As\.�A-j