HomeMy WebLinkAboutExhibit BCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Arthur Noriega V DATE: August 19, 2024
City Manager
-DocuSigned by:
Alfredo Duran a h P'
Assistant Direc\t5r3982D2°DB1B4°0
BACKGROUND
SUBJECT: District 2 MFE Allocation of $450,000
to DFI Mundy, LLC
On September 1 2022, the City of Miami ("the City") executed an ARPA Loan Agreement with Casa
Valentina, Inc., a Florida Not for Profit organization ("Former Developer"), for the acquisition of multiple
parcels and to develop no fewer than fifty (50) City -assisted affordable rental units for low-income
individuals at or below 80% AMI. The proposed development was to be known as "Casa Valentina" and
was to be situated at approximately 3129 Mundy Street, 3133 Mundy Street, 3135 Mundy Street, 3145
Mundy Street, 3147 Mundy Street, and 3153 Mundy Street in Miami ("Project").
Simultaneously, on September 1, 2022, the City executed a CDBG Loan Agreement with Casa Valentina,
Inc., in the amount of $440,846 to complement the ARPA funding referenced above and assist the Former
Developer in acquiring the aforementioned parcels and develop the Project.
DRAGONFLY REAL ESTATE INVESTMENTS
Dragonfly Real Estate Investments ("Dragonfly"), formed in 2014, has developed, bought or sold hundreds
of square feet of industrial and commercial retail spaces. Moving into ground -up development, Dragonfly
has over 400 affordable housing units in various stages of development. Most recently, the principals behind
Dragonfly, Irving Weisselberger and Amanda DeSeta, are advising the Greater St. Paul AME Church on
the development of 10 units of affordable housing, which is also being developed with City funds.
Earlier this year, Dragonfly proposed to take over the stalled Casa Valentina project from the Former
Developer, assume the existing ARPA Loan Agreement, acquire title to the property at 3121 and 3173
Mundy St, and deliver two-four plexes, contributing 8 units of affordable housing to a much needed area in
Coconut Grove. While the original Project, as we understood from the Former Developer, would have
required further Upzoning and a concerted master land acquisition plan that fell outside the scope of original
non -profit's expertise, Dragonfly will capitalize on its extensive real estate experience to deliver a successful
project and make use of the Federal Dept. of Treasury's ARPA funding before they expire in 2024.
In July 2024, Dragonfly formed the LLC "DFI Mundy LLC". The newly formed LLC will assume the original
loan from Casa Valentina, Inc. (Sunbiz.org, attached as Exhibit "A"). DFI Mundy LLC submitted a grant
application to the Office of Management and Budget, attached as Exhibit "B," to the City of Miami ("City")
for MFE Program Funds in order to complete the proposed project (See Exhibit "B" attached).
MIAMI FOR EVERYONE PROGRAM
The City of Miami created the Miami For Everyone ("MFE") Program to assist communities facing long-term
challenges resulting from declared emergencies and to address the specific needs of the most vulnerable
residents and businesses, by providing support towards priority areas of need that will further stabilize
economic conditions within City Districts.
DFI Mundy LLC has therefore requested MFE funds in the amount of Four Hundred Fifty Thousand Dollars
($450,000) in the form of a deferred interest, forgivable loan. The funds will be utilized for project costs
associated with the revised project scope, namely, paying off the original CDBG loan. The development will
house a minimum of 8 households whose income is equal to or less than eighty percent (80%) of area
median income ("AMI").
RECOMMENDATION
The City's District 2 Commissioner ("Commissioner") has reviewed the MFE Application attached and wishes to
provide grant funds from the Commissioner's share of MFE funding in an amount not to exceed
Four Hundred Fifty Thousand Dollars ($450,000) in the form of a forgivable loan to DFI Mundy, LLC. The exact
terms of the loan will be dictated by the final, HCLC Approval expected to be received on September 20, 2024.
In light of the above, approval of a waiver of the formal requirements of competitive sealed bidding methods as not
being practicable or advantageous to the City as set forth in the City Code of Ordinances, as amended, specifically
Section 18-85 (A), and the affirmation of these written findings and the forwarding of the same to the City
Commission for ratification by a fourth -fifths vote is respectfully requested.
APPROVED / DISAPPROVED
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City Manager
DIVISION OF CORPORATIONS
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Department of State / Division of Corporations / Search Records / Search by Entity Name /
Detail by Entity Name
Florida Limited Liability Company
DFI MUNDY LLC
Filing Information
Document Number L24000328481
FEI/EIN Number NONE
Date Filed 07/29/2024
State FL
Status ACTIVE
Principal Address
19 W FLAGLER ST, SUITE 1001
MIAMI, FL 33130
Mailing Address
19 W FLAGLER ST, SUITE 1001
MIAMI, FL 33130
Registered Agent Name & Address
EVAN R. MARBIN & ASSOCIATES, P.A.
19790 W DIXIE HWY PH 3
MIAMI, FL 33180
Authorized Person(s) Detail
Name & Address
Title MGR
DRAGONFLY INVESTMENTS LLC
19 W FLAGLER ST, AVE 1001
MIAMI, FL 33130
Annual Reports
No Annual Reports Filed
Document Imams
07/29/2024 -- Florida Limited Liability View image in PDF format
Florida Department of State, Division of Corporations
City of Miami
Miami For Everyone
Program Guidelines
Background:
On April 13th 2023, the Miami City Commission approved Resolution No. R-23-0178 establishing the
Miami For Everyone ("MFE") program. The following Miami For Everyone guidelines were adopted in
said Resolution R-23-0178, to ensure the accountability and utilization of the program funds meets the
intent of the MFE Program. Funding for the MFE Program will be allocated by the City Commission.
Purpose:
The purpose of the Miami For Everyone program is to assist communities facing the long-term
complications resulting from declared emergencies and to address the specific needs of the most
vulnerable residents and businesses, through a strategy of focusing the provision of support towards
priority areas of need that will further stabilize economic conditions within City District(s). The City of
Miami created the Miami For Everyone program to address the needs of the most vulnerable residents
who continue to experience hardships due to a declared emergency (pandemic, natural disaster, etc.).
Miami For Everyone focuses on projects and programs providing services directly benefitting City of
Miami residents in the following priority areas:
• Affordable Housing'
• Educational Programs for children, youth and adults
• Elderly meals, direct financial assistance, transportation, recreational and health/wellness related
activities
• Direct financial assistance, food assistance (gift card programs, voucher programs)
• At -risk youth or youth summer job programs
• Transportation services and programs
• Job development, retention and training programs
• Homeless Services
• Food Distribution programs
• Necessary climate and resiliency improvements in compliance with program purpose and
guidelines
• Essential supplies, during a State of Emergency, natural disaster, or economic
crisis.
• Necessary infrastructure improvements in compliance with program purpose and guidelines
The expenditure of Miami For Everyone funds allocated under this Initiative shall only be expended to
benefit the interest of disadvantaged residents of the City of Miami.
Eligible Entities and Organizations:
Miami For Everyone fund recipients must be an active and registered State of Florida entity:
1 All Affordable Housing projects shall be managed by the City of Miami's Department of Housing and Community Development
("HCD") and subject to compliance with HCD's applicable rules, guidelines, processes, and procedures, including but not limited
to, relevant funding agreements.
City of Miami
Miami For Everyone
Program Guidelines
(1) For Profit2; (2) Not -for profit organizations {501(3)(c)}; (3) Governmental units; (4) Educational
and academic institutions; (5) City of Miami departments, Offices of City Elected Officials, agencies,
or boards.
Additional Program Guidelines and Requirements
• Any organization considered for or selected to receive Miami For Everyone funds must comply
with any and all local, state and federal laws, rules, regulations, or guidelines associated with the
programs funded, and such allocations may be revoked at the sole discretion of the City
Commission.
• Organization must complete a Miami For Everyone funding request form.
• MFE programs are subject to funding availability.
• MFE fund recipients will use funds for a program or initiative that reaches a significant number of
individuals and/or significantly mitigates the impacts of a declared emergency.
• Recipients will be required to enter into a grant agreement with the City of Miami prior to any
funding being disbursed. Said agreement shall include program/activity information and
language regarding:
o Resolution stating who is authorized to execute agreement with City of Miami
o Scope of Services including but not limited to number of residents being served, City of
Miami District/Location where services are being provided, program focus/priority area,
frequency of service, performance measures and any other performance metric deemed
relevant to the program priority area
o Budget detailing how funding will be utilized to provided services to City/District residents
as described in the Scope of Services
o Invoicing for activities and services provided and residents assisted or served
o Conflict of Interest
o Insurance as required by the City of Miami, which said requirements may be amended by
the City's Department of Risk Management ("Risk") and approved by Risk, which may be
withheld in the City's sole discretion.
o Any other material terms deem applicable to ensure appropriate use of public funds
• If an agreement is not executed in six (6) months from the date of Commission approval, the
recipient will be recommended for de -obligation.
• Unless otherwise approved or extended by City Commission, the agreement term will end a year
following contract execution.
• Recipients will be required to complete an end of program close-out report certifying the services
provided, performance metrics, location of services, timeline for the provision of MFE related
services and a narrative of the overall accomplishments of the program. The City, from time to
time, may conduct on -site monitoring and/or audits of the MFE funded program/activity/service.
• Funds cannot be used to pay expenditures such as:
o Lobbying Activities
o Traveling for non -program participants
o Meals for non -program participants
o Pay bad debt
2 Only eligible to be awarded funding for affordable housing projects.
City of Miami
Miami For Everyone
Program Guidelines
o Defense and prosecution of criminal and civil proceedings
o Donations or fund raising activities
o Individual or Personal expenses
o Pay same expense charged to other funding source (e.g. CDBG funds)
o Sponsorship of events and activities
o Any other expenditures deemed ineligible by the City of Miami
Organizations that discriminate based on race, color, sex, religion, national origin, age or disability
will not be recommended for funding. Administrative/Indirect expenses cannot exceed 10% of
the budget allocation.
• These guidelines are further subject to compliance with all requirements that may be imposed
by the City Attorney, including but not limited to, those prescribed by applicable City Charter and
City Code provisions.
• The attached Funding Request Form (pages 1-6) must be completed in its entirety by the applicant. The
completed form must besubmitted to the Office of Management and Budget before the entity may
added to the Commission Agenda for approval.
(March 28, 2023)
City of Miami
Miami For Everyone
Program Funding Request Form
CONTACT INFORMATION:
Contact Person: Amanda De Seta
Title: Head of Development
Phone number: 917-774-0869
Email Address: amanda@dragonflyri.com
Name of Person completing this form: Amanda De Seta
Legal Name of Organization: DFI Mundy, LLC
Address (Street, City, State, Zip Code): 19 W Flagler Street Suite 1001 Miami FL 33130
Executive Director of Organization: Irving Weisselberger
Executive Director email: Irving@dragonflyri.com
Executive Director Contact Phone Number: 305-319-0662
The organization is a registered and active State of Florida Corporation (select one):
nFor -profit organization
n N• ot -for profit organization {501(3)(c)}
nLocal governmental unit
nS• tate governmental unit
nEducational and academic institution
nC• ity of Miami department, office of elected official, agency or board
Page 1 of 6
Return this form to: gbrito@miamigov.com
(March 28, 2023)
City of Miami
Miami For Everyone
Program Funding Request Form
ORGANIZATION AND PROGRAM/PROJECT INFORMATION
Organization History and Background Information:
Dragonfly Real Estate Investments, formed in 2014, has developed, bought or sold hunt
square feet of industrial and commercial retail spaces. Moving into ground up developrr
Dragonfly has over 400 affordable housing units in various stages of development.
Is your program/project providing direct services to residents of the City of Miami? Yes ❑No ■❑
Number of residents your entity will serve:
Frequency of Service:
Age Group Served:
Is your program/project related to a declared emergency in the City of Miami? Yes❑No ■❑
Name of Declared Emergency:
Date of Official Declaration:
Is your program/project impacting one of Miami's afflicted communities? Yes ❑■ NoD
Geographic Area Served (specific to this project/program)
District Served (1, 2, 3, 4, 5, Citywide) District 2
Neighborhood/Community being served: West Coconut Grove
Program/Project Priority area (Select one):
El
EI
EI
EI
EI
Affordable Housing
Educational Programs for children, youth, and adults
Elderly meals, direct financial assistance, transportation, recreational and
health/wellness related activities
Direct financial assistance, food assistance (gift card programs, voucher programs)
At -risk youth or youth summer job programs
Page 2 of 6
Return this form to: gbrito@miamigov.com
(March 28, 2023)
City of Miami
Miami For Everyone
Program Funding Request Form
InTransportation services and programs
InJob development, retention and training programs
nHomeless Services
nFood Distribution programs
InClimate Resiliency Improvements
InEssential supplies, during a State of Emergency, natural disaster, or economic crisis
nAllowable Infrastructure Improvement per program purpose and guidelines
Return this form to: gbrito@miamigov.com
(March 28, 2023)
City of Miami
Miami For Everyone Program
Funding Request Form
Program/Project Title: DFI Mundy Affordable Housing
Project/Program Description: Dragonfly will take over the stalled Casa Valentina project
in order to deliver two four-plexes designated to a blended 80% AMI. This will allow
the original ARPA funds to be used, while delivering 8 more affordable units to the
West Grove.
Program Start Date: 10/15/24 Program End Date: 10/15/26
Please describe how this program/project and funding will assist the community overcome the
adverse effects of the declared emergency:
This project will provide 3 bedroom, 2 bathroom units for families who were disproportior
effected during the pandemic. The effects of inflation and rising housing costs has
rendered Coconut Grove unaffordable for many who work within the community.
IMPACT AND PERFORMANCE:
Describe overall expected outcomes and performance measures for this project/program:
We envision delivering quality, 3 bedroom 2 bathroom units within 24 months. We
anticipate a very short lease up period to deliver 100% occupancy quickly.
Please attach additional pages to the back of this packet, if. the space above is not sufficient
Page 4 of 6
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(March 28, 2023)
City of Miami
Miami For Everyone Program
Funding Request Form
FUNDING REQUEST INFORMATION:
Amount Requested: $450,000.00
Explain how the City of Miami's Miami For Everyone funding will be utilized:
These funds will be applied to replace the CDGB funds received by Casa Valentina origi
to purchase 3121 + 3173 Mundy Street to develop affordable housing. As part of the
conveyance at closing, the funds will be used to repay the CDGB monies to the City
of Miami.
Itemize MFE funding related to expenditures below:
Personnel Salaries & Wages:
$
Personnel Benefits $
Space Rental: $
Utilities (Electricity, Phone, Internet): $
Supplies:
Equipment
Marketing:
Transportation (Participants):
Meals (Participants):
Professional Services (List each):
$
$
Construction (attach schedule of costs): $
Other (please describe): CDGB repayment
Other (please describe):
Other (please describe):
Page 5 of 6
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(March 28, 2023)
rG
DS
Commission Meeting Date:
City of Miami
Miami For Everyone Program
Funding Request Form
To be completed by the Entity/Recipient
By signing below you agree to the guidelines and stipulate that the information provided on this form is
accurate and complete.
Completed by (Print & Sign ):
Date: August 6, 2024
Additional Comments:
To be completed by District Commissioner/Mayor's Office
Recommended for funding: Yes ❑ No❑
$450,000.00
Funding Recommendation:
September 12 2024
Additional Comments:
To be disbursed on a lump sum -basis after meeting all requirements.
Completed by (Print & Sign):
August 13, 2024
Date:
�DocuSigned by:
Anthony Balzabre
15. To be completed by the Department
DocuSigned by:
August 13, 2024 1 13:10:49 EDT
Received by (Print & Sign):
L-73/4
gF�4SBC'S+t99...
August 14, 2024 1 09:3:26 EDT
Date:
Additional Comments:
Page 6 of 6
Return this form to: gbrito@miamigov.com
(March 28, 2023)