HomeMy WebLinkAboutCRA-R-15-0004 Cover MemoSEOPW Board of Commissioners Meeting
February 23, 2015
SOUTHEAST OVERTOWN/PARK WEST
COMMUNITY REDEVELOPMENT AGENCY
INTER -OFFICE MEMORANDUM
To: Board Chair Keon Hardemon
and Members of the CRA Board
Date: February 13, 2015 File: 15-00132
Subject: Resolution Authorizing Execution of a Loan
Proposal for Bridge Financing from Florida
Community Bank.
From: Clarence E. Woods, III 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 Executive Director to execute a loan proposal for bridge
financing from Florida Community Bank for use in connection with the rehabilitation of Town Park Plaza North
475 N.W. 19th Street, Miami, Florida (Folio No. 01-3136-083-0870) ("Town Park Plaza North"). This Resolution
further authorizes a transfer of funds in an amount not to exceed $85,000 to Florida Community Bank.
Town Park Plaza North is a 20-building, 169-unit affordable housing complex in the Redevelopment Area. The
condition of Town Park Plaza North poses significant risk to the health and safety of its occupants, and in turn,
extensive rehabilitation is needed, as evidenced by structural cracks, unsecured railings, deteriorating plumbing,
rotting wood, and outdated electrical wiring.
In an effort to address these conditions, the Board of Commissioners, by Resolution No. CRA-R-12-0061,
passed and adopted on September 17, 2012, authorized the issuance of tax increment revenue bonds to
finance or refinance the acquisition and construction of community redevelopment projects, including the Town
Park Plaza North rehabilitation project. Notwithstanding, the CRA, upon advice of bond counsel, sought
alternative funding sources in lieu of utilizing the tax increment revenue bonds for the Town Park Plaza North
rehabilitation project.
On March 13, 2013, in an effort to assist the CRA with leveraging its funding support of the Town Park Plaza
North rehabilitation project, the Board of Commissioners, by Resolution No. CRA-R-13-0015, authorized the
Executive Director to apply for funding from Federal Home Loan Bank of Atlanta ("FHLB-Atlanta") and was later
awarded a grant in the amount of $150,000, for the rehabilitation of 15 owner -occupied units in Town Park Plaza
North. The CRA also applied for grant funding from Federal Home Loan Bank of New York for the Town Park
Plaza North rehabilitation project, and was awarded a grant in the amount of $600,000. Thus, the CRA secured
$750,000 in third party grant funding to be utilized for the Town Park Plaza North rehabilitation project.
A provision of the FHLB-Atlanta award requires the CRA to establish a Cash Collateralized Line of Credit in the
amount of $75,000, with Florida Community Bank, a local member of FHLB-Atlanta. The award further requires
the CRA to establish a depository account with Florida Community Bank to service the Line of Credit and
requires fees and payments in an amount not to exceed $10,000 to be deposited into the account. The Board's
approval of this Resolution accepts the terms of the loan proposal, which will provide the basis for the terms of
loan documents that will be prepared at a later date.
In addition to being awarded third party grant funding, on October 24, 2013 and September 19, 2014, the Board
of Commissioners, by Resolution Nos. CRA-R-13-0068 and CRA-R-14-0062, authorized the issuance of grants
to Town Park Plaza North totaling $15,033,333 for the rehabilitation project. In total $15,783,333 in grant
funding is available for the Town Park Plaza North rehabilitation project.
JUSTIFICATION:
Section 163.400(1)(d), Florida Statutes, allows a community redevelopment agency "to borrow money and apply
for and accept advances, loans, grants, contributions, and any other form of financial assistance from ... any
source."
Further, Section 2, Goal 3, at page 11, of the Southeast Overtown/Park West Community Redevelopment
Agency Plan ("Plan") lists the "creati[on of] infill housing, diversity in housing types, and retaining affordable
housing," as a stated redevelopment goal. Section 2, Principle 2, at page 14, of the Plan provided that "[tjhe
neighborhood ... retain access to affordable housing ,..."
FUNDING:
$85,000 allocated from SEOPW Tax Increment Fund, entitled "Grants and Other Aids," Account No.
10050.92101.883000.0000.00000.