HomeMy WebLinkAboutSummary MemoD5 AGENDA SUMMARY MEMO
Date: June 30, 2011
Commission Meeting Date: July 14, 2011
Sponsor: COMMISSIONER RICHARD P. DUNN III
Agenda Item: APPROVAL OF AN ACKNOWLEDGMENT AND CONFIRMATION AGREEMENT
FOR AN AFFORDABLE HOUSING PROJECT BY PARKVIEW GARDENS, LTD.
Impact: DISTRICT 5'S AFFORDABLE HOUSING SUPPLY
Purpose of the Item:
The purpose of this item is to acknowledge and confirm that in the event title to the
parcels more fully described in Exhibit "A" ("Property") reverts to the City of Miami
(`City") as a result of an occurrence of any of the events triggering such reversion,
specified in the Deed dated December 23, 2010 and recorded in Official Records Book
27537, page 2972 of the public records of Miami -Dade County conveying the Property
from the City to Parkview Gardens, Ltd., that the City's title to the Property will be
subject to the mortgages then outstanding by JP Morgan Chase Bank, N.A., First
Housing Development Corporation of Florida and Miami -Dade County.
Background Information:
Pursuant to Resolution No. 08-0636, adopted November 13, 2008, the Miami City
Commission conveyed. five (5) parcels of land more fully described in Exhibit "A" (the
"Property") by virtue of a Quit Claim Deed dated December 23, 2010 recorded in the
Official Records Book 27537, Page 2972 of the Public Records of Miami -Dade County
(the "Deed") to Parkview Gardens, Ltd. ("Parkview"), for the construction of six (6)
garden style, new construction apartment buildings with a total of 6o affordable housing
units (the "Project").
The Deed from the City to Parkview contains parcel reverter provisions, providing that
title to the Property shall immediately and automatically revert to and vest in the City
upon the occurrence of certain events as more particularly set forth in the Deed attached
as Exhibit "B".
Parkview is obtaining loans from JP Morgan Chase Bank, N.A. ("Chase"), First Housing
Development Corporation of Florida ("First Housing"), Miami -Dade County ("County")
and the City for the construction of the Project, which loans will be secured by
mortgages on the Property.
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Chase, First Housing and the County, are concerned that in the event the
City were to exercise its rights under the reverter provisions of the Deed,
the City would take the title to the Property free and clear of any
encumbrances on the Property at that time, thereby, extinguishing their
respective mortgages.
Currently there is no existing case law that addresses this issue one way other whether
the City, should it exercise its right under the reverter provisions of the Deed, would
take the Property free and clear of the encumbrances at the time or if the City would
take the Property subject to any encumbrances on the Property.
Consequently, Chase, First Housing, and the County have requested, out of an
abundance of caution given the national economic environment, that the City, should it
exercise its rights on the reverter provisions of the Deed, would acknowledge and
confirm that it would take the Property subject to the mortgages of Chase, First Housing
and the County existing at the time. Such acknowledgment would facilitate the funding
for the Project and its completion, which in turn will increase the supply of affordable
housing within the City.
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