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HomeMy WebLinkAboutCRA-R-14-0004 Cover MemoSEOPW Board of Commissioners Meeting January 27, 2014 SOUTHEAST OVERTOWNIPARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Keon Hardemon and Members of the CRA Board Date: January 17, 2014 File: 14-00034 Subject: Resolution Authorizing Additional Funding to Mt. Zion for Carver Apartments and Shoppes From: Clarence E. Woods, III 0- References: Executive Director Enclosures: Supporting Documentation; Legislation BACKGROUND: The attached Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") authorizes the issuance of a grant, in an amount not to exceed $60,000, to MTZ Carver, LLC ("MTZ") to underwrite costs associated with the renovation and rehabilitation of the building at 801 NW 3rd Avenue, Miami, Florida. In 2011, MTZ submitted a proposal for a grant to underwrite costs associated with the redevelopment of the property at 801 NW 3rd Avenue, Miami, Florida (the "Carver Project" or "Property") which consists of the rehabilitation of approximately 3,900 square feet of commercial space, and ten (10) residential units. MTZ has invested in excess of $191,000, and has secured additional funding in the amount of $1.12 million to fund the rehabilitation of the ten (10) affordable apartment rental units at the Property (the "Residential Project Phase"). MTZ requested a grant from the CRA to underwrite the costs of demolition work, structural and interior framing, installation of plumbing and HVAC systems, electrical rewiring, cabinetry, asbestos abatement, and landscaping; associated with the complete rehabilitation of the ground floor commercial units (the "Commercial Project Phase") and a portion of the Residential Project Phase. In turn, on July 25, 2011, the Board of Commissioners, by Resolution No. CRA-R-11-0034, authorized the issuance of a grant, in an amount not to exceed of $670,000, to MTZ to underwrite costs associated with the Commercial Project Phase and Residential Project Phase. The Carver Project is near completion; however, MTZ seeks additional funding, in the amount of $60,000 to complete the Carver Project due to unforeseen construction cost overruns in connection with, among other things, the structural conditions of the building. JUSTIFICATION: Section 2, Goal 3 and 4/Principles 2 — 4, at pages 11, 12 and 14, of the 2009 Southeast Overtown/Park West Community Redevelopment Plan ("Plan") lists creating infill housing, developing a variety of housing options, the "creati[on of] jobs within the community," and providing "variety in job options," as a stated redevelopment goals and objectives. Additionally, Principle 1, at page 13, of the Plan provides that "neighborhood -serving commercial uses, such as pharmacies, grocery stores, bank branches, dry cleaners, restaurants, day care facilities, and entertainment establishments ... should be incorporated into the neighborhood fabric to serve the population." Lastly, Principle 6, at page 15, of the Plan provides that in order to "address and improve the neighbor economy and expand economic opportunities of present and future residents and businesses[,]... [it is necessary to] support and enhance existing businesses and ... attract new businesses that provide needed services and economic opportunities...." FUNDING: $60,000 are to be allocated from SEOPW Tax Increment Fund, entitled "Other Grants and Aids" Account Code No. 10050.920101.883000.0000.00000.