HomeMy WebLinkAboutCRA-R-11-0034 07-25-2011 Cover MemoSEOPW Board of Commissioners Meeting
July 25, 2011
SOUTHEAST OVERTOWN/PARK WEST
COMMUNITY REDEVELOPMENT AGENCY
INTER -OFFICE MEMORANDUM
To: Board Chair Richard P. Dunn II
and Members of the CRA Board
Date: June 23, 2011 File: 11-00549
Subject: Resolution Authorizing a Grant to MTZ Carver
LLC to Underwrite Costs Associated with the
Rehabilitation of the Vacant Commercial
Structure at 801 NW 3rd Avenue (Carver
Apartments & Shoppes)
From: Pieter A. Bockweg References:
Executive Director
Enclosures: Supporting Documentation; Legislation
BACKGROUND:
It is recommended that the Board of Commissioners of the Southeast Overtown/Park West Community
Redevelopment Agency (CRA) approve and adopt the attached Resolution authorizing a grant in an amount
not to exceed $670,000, to MTZ Carver LLC, ("MTZ") to underwrite costs associated with the rehabilitation of a
vacant, three story commercial building (the "Carver Apartment & Shoppes" or "Project") at 801 NW 3rd Avenue,
Miami, Florida, ("Property" or "Project Site"). The Project scope of work includes demolition work, structural and
interior framing, installation of plumbing and HVAC systems, electrical rewiring, cabinetry, asbestos abatement,
and landscaping.
The Project is estimated to cost $1,840,403. To date, MTZ has invested $191,013 into the Project, and
anticipates the creation of four (4) new jobs inside its organization for work associated with the Property, and
approximately 24 new jobs from prospective commercial tenants. MTZ has secured financing for the Project
from the Florida Housing Finance Corporation, the City of Miami, and Overtown Renaissance, LLC, in the
aggregate amount of $1,126,366, approximately 61% of the Project budget. MTZ is requesting a CRA grant of
$662,024, to offset a portion of the costs associated with the renovation of the residential component of the
Project and to fully fund the renovation of the commercial ground floor of the Property. MTZ has acquired the
necessary building permits from the City of Miami for the Project and has indicated it is ready to mobilize within
thirty (30) days if requested CRA funding is awarded to the Project. The Property is currently vacant and is
presently inhabitable.
The CRA has elevated Job Creation and Affordable Housing as priority objectives of the Southeast
Overtown/Park West Redevelopment Area ("Redevelopment Area") as identified in the 2009 amended and
restated Southeast Overtown/Park West Redevelopment Plan ("Plan"). The Plan, on page 54, documents the
existing economic conditions of the Redevelopment Area noting the "Residential population has decreased in
year 2000 from year 1990 according to the Federal Census, explaining the decrease in viable businesses that
offer services to the residents." To counter the decline in economic opportunities, the CRA adopted legislation
providing for a commitment of funds up to $30 million' to improve the inventory of affordable housing units within
the Redevelopment Area with a focus on apartment rental rehabilitation projects that target low and moderate -
income households. In addition, the CRA instituted several business assistance programs, such as the Wrap
Around Program operated by Downtown Miami Partnership, the Business Capacity Building training program
operated by Neighbors and Neighbors, Inc., and the NW 3rd Avenue Commercial Revitalization Grant Program
and the Media Industry Capital Outlay Grant Program, to support new and existing businesses that create and
retain jobs for residents of the Redevelopment Area. This Resolution furthers the CRA's priority objectives and
is consistent with the Plan.
1 SEOPW Resolution R-06-0045
FUNDING CONDITIONS:
MTZ has agreed to the following funding conditions:
1. To execute, and publicly record, a restrictive covenant on the Property providing that the commercial
rents are maintained at an affordable rate, for a five-year tolled period.
2. To work with the CRA, and the CRA funded job training institutes, to establish and implement a
recruitment and job retention program at the Property to target the hiring of employees from within the
Redevelopment Area residential population.
3. To carry out the Project in compliance with the Urban Design Requirements and the Architectural
Regulations as delineated in the Historic Overtown Folklife Village Masterplan.
ENTITY:
MTZ is a local Florida Non -Profit, Limited Liability Corporation that is managed by Mt Zion Developments, Inc.
("MZDI"). MZDI is a Florida Non Profit Corporation that has received the City's designation as a Community
Housing Development Organization ("CHDO") for completing affordable housing projects and providing housing
opportunities in the historic Overtown community.
PROJECT:
On October 15, 2009, MTZ acquired the Property which consists of ten (10) residential units, and approximately
3,900 square feet of ground floor retail space. The Property will undergo a complete rehabilitation with
enhanced facade improvements consistent with the adopted design guidelines for the historic D.A. Dorsey Way
"NW 3rd Avenue" Business Corridor as outlined in the Plan. The renovation of the residential units is being
funded with restricted HOME federal funds awarded to MTZ by the City with a condition that the completed units
are affordable to the neighborhood population. Six (6) of the residential units will be rented to residents whose
household income does not exceed 60% of the Area Median Income ("AMI"); the remaining four units will be
rented to residents with household incomes not exceeding 140% AMI. The City's funding condition is consistent
with the CRA's Affordable Housing policy as detailed in the Plan. The CRA funds would be utilized primarily for
the renovation of the commercial ground floor with a small funding allocated towards completing the renovation
of the residential units.
Sq. Ft
Units
Cost/S.F.
Cost/Unit
Total Cost
CRA
Contribution
Residential
6,336
10
$148.08
$93,826.05
$938,260.50
$311,860.50
Retail
3,890
4
$90.02
$87,540.00
$350,163.50
$350,163.50
Total Building
10,226
14
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$1,288,424
$662,024.00
The Project team consists of the following firms:
CONSTRUCTION MANAGEMENT: Bernie Milhausen, consultant.
ARCHITECT: Frances, Anillo, Toledo - Design & Construction Documents.
GENERAL CONTRACTOR: Dwight Stephenson Construction Company.
MARKETING & MANAGEMENT: Urban Property Management, a subsidiary of MZDI.
PROJECT TIMELINE
Event
• CRA Board approval of grant funding
• Execution of all Project related Agreement
and financing documents
• Commencement of Project
• Construction Period
• Project Groundbreaking
Date
July, 25, 2011
August, 2011
September, 2011
September, 2011- March, 2012
April, 2012
JUSTIFICATION:
The Project is consistent with the conceptual build -out plan as detailed in the Plan. Specifically, the Project Site
is located within the target area defined in the Plan as "Project Area B", the Historic Overtown Folklife Village
and the proposed facade treatment and intended use of the Property is consistent with the guidelines stipulated
at page 15, and "Appendix A" of the Historic Overtown Folklife Village Masterplan2, which is incorporated by
reference in the Plan. The Project will be the second initiative within the defined "Project Area B"; the first being
the completion of the 9th Street Pedestrian Mall streetscape improvements and the restoration of the historic
Ward Rooming structure.
The Plan sets forth the redevelopment goals for the Redevelopment Area and the priority action steps
necessary to eliminate conditions of slum and blight. The Plan, on page 11, lists as redevelopment goals: (1)
"Creating jobs within the community"; (2) "Creating infill housing, diversity in housing types, and retaining
affordable housing"; and (3) "Improving the quality of life for residents of the Redevelopment Area."
This Resolution furthers these objectives.
FUNDING: $670,000 from SEOPW Tax Increment Fund, "Other Grants and Aids," Account Code No:
10050.920101.883000.0000.00000.
2 Historic Overtown Folklife Village Masterplan, May 1997: Duany Plater-Zyberk & Company