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HomeMy WebLinkAboutCRA-R-08-0037 backup• • • EXECUTIVE SUMMARY PROPOSED DEVELOPMENT AGREEMENT FOR THE JAZZ VILLAGE AT LITTLE BROADWAY PROJECT A) SCOPE: Development of the Southeast Overtown/Park West Community Redevelopment Agency's parking lot P-3 at 345 N.W. 10th Street, in Overtown, by UDG V, LLC, consisting of low income rentals, affordable/workforce housing, retail and office, and associated parking. B) BUILDING 1: Consists of between 10,000 and 36,000 square feet of retail/office space, including a medical training facility, and 41 affordable and workforce housing condominium units (the "Condominium Units") in a building of eight or nine stories, consisting of not more than five one bedroom units containing not less than 580 saleable square feet, two bedroom units containing not less than 825 saleable square feet and three bedroom units containing not less than 1,100 saleable square feet. C) BUILDING 2: Consists of between 70-77 affordable rental units (the "Rental Units") in a six story building containing approximately 50% one bedroom units containing no less than 600 rentable square feet and 50% two bedroom units containing no less than 800 rentable square feet or 70-77 one bedroom affordable elderly rental units containing not less than 535 rentable square feet. D) PARKING GARAGE: The Developer will construct a 300-space public parking garage (the "Parking Garage") in accordance with specifications provided by the Department of Off -Street Parking. The Parking Garage will be owned by the CRA and operated by the Department of Off -Street Parking. (The Parking Garage and Buildings I and 2 are collectively referred to as the "Project.") E) CRA CONTRIBUTION FOR PARKING GARAGE: The CRA will pay up to $5,028,982.60 for the construction of the Parking Garage and has paid $971,017.40 to purchase the property on which the Garage will be constructed. The Developer will pay all cost overruns. Developer will pay a portion of the costs necessary to operate the parking spaces required for Buildings 1 and 2. The CRA will be required to provide an estimated annual subsidy of approximately $90,000 per year in 2008 dollars for operating shortfalls. F) FUNDING: The CRA agrees to include not less than Two Million Dollars ($2,000,000) in its Fiscal Year 2008/2009 budget, and not Iess than Three Million Twenty -Eight Thousand Nine Hundred Eighty -Two ($3,028,982.60) in its Fiscal Year 2009/2010 budget, to fund the Parking Garage. G) RENTAL UNITS: Rental units are restricted to persons with an income of between 40% and 60% of the Miami -Dade County Median Income for a period of 30 years (the "Affordable Rental Requirement"). Failure to comply with the Affordable Rental Requirement results in an annual penalty of $4,000 for each rental unit determined not to be in compliance. • • • II) CONDOMINIUM UNITS: Condominium units are restricted to persons with an income between 50% and 150% of the Miami -Dade County Median Income for a period of 10 years (the "Affordable Housing Requirement"). Failure to comply with the Affordable Housing Requirement results in a penalty to the Developer of 100% of the of the difference between the gross sales price for any such unit and the then current Maximum Affordable Housing Sales Price (as annually established by the City of Miami Community Development Department), provided that the Maximum Affordable Housing Sales Price applied shall be no less than $236,000. All of the Condominium Units shall be conveyed subject to a deed restriction, which restricts resale of the units to purchasers who meet the Affordable Housing Requirements, for a period of ten (10) years from the date of closing. Violation of this deed restriction requires the Owner to pay 50% of the difference between the original purchase price and the new sale price; or $20,000, whichever is greater. I) TIME FRAME: Developer has 15 months from execution of the Development Agreement to obtain financing for the Project and demonstrate that Developer is prepared to immediately start construction of the Project. �) GROUND LEASE: At closing, the CRA will lease the property upon which the Project is to be located to the Developer for $1.00 per year (the "Lease") and allow the Developer the right to use the number of parking spaces in the Parking Garage required for the Project. The City must agree to honor the Lease upon termination of the CRA. K) PLANS AND SPECIFICATIONS: CRA has approval rights over the plans and specifications, which must be consistent with the Developer's preliminary plans. 54E9827 v2 2