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HomeMy WebLinkAboutSEOPW CRA 2017-03-21 MinutesCity of Miami 819NW2ndAve 3rd Floor Miami, FL 33136 http://miamicra.com Meeting Minutes Tuesday, March 21, 2017 4:00 PM Camillus House 1603 N.W. 7th Ave., Bldg. B Miami, FL 33136 SEOPW Community Redevelopment Agency Keon Hardemon, Chair Wifredo Gort, Vice Chair Ken Russell, Board Member, District Two Frank Carollo, Board Member, District Three Francis Suarez, Board Member, District Four SEOPW CRA OFFICE ADDRESS: 819 NW 2ND AVE, 3RD FLOOR MIAMI FL 33136 Phone: (305) 679-6800, Fax (305) 679-6835 www.miamicra.com Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 CALL TO ORDER Present: Chair Hardemon, Vice Chair Gort, Commissioner Russell, Commissioner Carollo and Commissioner Suarez On the 21st day of March 2017, the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency of the City of Miami met in regular session at Camillus House, 1603 Northwest 7th Avenue, Miami, Florida. The meeting was called to order by Chair Hardemon at 4:09 p.m., and was adjourned at 4:41 p.m. Note for the Record: Commissioner Suarez entered the meeting at 4:11 p.m., and Commissioner Russell entered the meeting at 4:17p.m. ALSO PRESENT: Clarence E. Woods, Executive Director, CRA Renee A. Jadusingh, Staff Counsel, CRA William Bloom, Special Counsel, CRA Rafael Suarez Rivas, Assistant City Attorney, Supervisor Todd B. Hannon, Clerk of the Board APPROVING THE MINUTES OF THE FOLLOWING MEETINGS: 1. MINUTES OF JAN 30, 2017 AT 5:00 PM MOTION TO: Approve RESULT: APPROVED MOVER: Frank Carollo, Commissioner SECONDER: Wifredo (Willy) Gort, Commissioner AYES: Hardemon, Gort, Carollo ABSENT: Russell, Suarez Chair Hardemon: Good afternoon, everyone. Welcome to the Southeast Overtown/Park West Community Redevelopment Agency Tuesday, March 27, 2017 meeting here at Camillus House. I note the presence of Commissioner Gort and Commissioner Carollo. I had -- Commissioner Suarez is also in the facility, but he is not present right now as we're starting the meeting. So I'd like to open up this meeting. We have the first agenda item, which is the regular meeting minutes of January 30, 2017. Is there a motion to approve those meeting minutes? Board Member Carollo: Move it. Chair Hardemon: Been properly -- Vice Chair Gort: Second. SEOPW CRA Page 2 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 Chair Hardemon: -- moved and seconded. Any objections? Hearing none, the motion shall carry. PUBLIC COMMENTS Chair Hardemon: Then now, we have the resolutions that are on the agenda for today. We have four resolutions. At this time, what we'll do is we'll open the floor for public comment, so if you are here and you are a member of the public, if you'd like to make a comment on any of the agenda items, now is the time to do so. You'll have two minutes to address this body. State your name, your address, and which item it is that you're referring to. So I'll open the floor right now for public comment. Seeing no public comment. CRA RESOLUTION 1. CRA RESOLUTION 1997 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENTS, ACCEPTING THE PROPOSAL RECEIVED FROM RENAISSANCE POINTE APARTMENTS, LLC, THE SOLE PROPOSER TO REQUEST FOR PROPOSALS 17-01, FOR THE DEVELOPMENT OF MULTIFAMILY HOUSING AT 1611 NW 3RD AVENUE & THE REAR PARKING LOT AT 1490 NW 3RD AVENUE; AUTHORIZING THE EXECUTIVE DIRECTOR TO FINALIZE AND EXECUTE A DEVELOPMENT AGREEMENT, IN SUBSTANTIALLY THE FORM ATTACHED AS EXHIBIT "A" WITH ADDITIONAL TERMS READ INTO THE RECORD AT THE MARCH 21, 2017 SEOPW CRA BOARD OF COMMISSIONERS MEETING; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE. File # 1997 Exhibit A File # 1997 Backup ENACTMENT NUMBER: CRA-R-17-0018 MOTION TO: Adopt with Modification(s) RESULT: ADOPTED WITH MODIFICATION(S) MOVER: Francis Suarez, Commissioner SECONDER: Wifredo (Willy) Gort, Commissioner AYES: Hardemon, Gort, Russell, Carollo, Suarez L Chair Hardemon: RE.1. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Commissioners, Resolution Number 1 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency accepting the recommendation of the selection committee for the top -ranked development firm for the Request for Proposals to develop multifamily housing developments at 1611 Northwest 3rd Avenue and the rear parking lot at 1490 Northwest 3rd Avenue -- the properties; authorizing the executive director to finalize and execute a development agreement in substantially the attached form, which includes the option to lease or sell the properties to the top -ranked proposer, based on the proposal SEOPW CRA Page 3 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 submitted by the top -ranked proposer; further authorizing the executive director to execute all documents necessary for said purpose. Commissioners, we want to modify some of the language here. This was done in advance of receiving all of the proposals, so when we talk about a selection committee and the top -ranked proposer, we only received one proposal, so we are recommending that we do go forward and allow for that proposer to enter into a contract with the CRA (Community Redevelopment Agency) for the purposes of submitting a 9 percent application to the State of Florida for tax credits. The State of Florida is -- has modified its universal application, and they're now doing specialized applications. One such application is for redevelopment areas, and they're putting out an RFA (Request for Applications) for developers who have projects in redevelopment areas, such as ours -- just like ours -- in an effort to fund projects in redevelopment areas. So we believe that this method was the best way to do that in order to be able to attract potentially $17 million into the redevelopment area. It's for housing; not just affordable housing, but it's mixed -income housing. 20 percent of the units have to be market; 45 percent, low income; and then another 10 percent is what they call "extremely low income." But we would like to modem this language, and my attorney will speak to that. Renee Jadusingh: Hi. So we're going to be modfing the portion where it reads, "The executive director is finalizing" -- Chair Hardemon: Can you tell us where you're reading from? Ms. Jadusingh: Oh, sorry. If you'd go to -- where it says, "Authorizing the executive director" -- towards the middle -- "to finalize and execute" -- oh, in the actual resolution? Chair Hardemon: Is it a "whereas" clause, or is it within the title? Mr. Woods: The title. Ms. Jadusingh: No. It's in the title. Mr. Woods: The title. Ms. Jadusingh: Right. So towards the middle, it says, "Authorizing the executive director to finalize and execute a development agreement, in substantially the attached form." We're going to change that to, "in a form acceptable to special counsel." Chair Hardemon: Who is special counsel? Ms. Jadusingh: It's going to be Bill Bloom. He's special. Chair Hardemon: So, Mr. Bloom, what does that mean? What does that change mean? We have a change that says, "in a form that is acceptable to special counsel." William Bloom (Special Counsel to the SEOPW CRA): It means that the executive director will negotiate the development agreement with the developer, and it'll be in a form approved by the executive director and by special counsel, as to form and substance, so that Mr. Woods would be able to make changes to the form that's attached to the resolution, which, again, was prepared prior to getting their proposal, with the anticipation that there would be a — more than one applicant. So there was, again, no committee. There's issues in the draft whether it was a fee simple transaction or a leasehold transaction. We're -- the proposal is for a fee simple transaction, so we'll be modifying that form to reflect the terms in the proposal that were acceptable to the executive director, and making it a fee simple transaction. SEOPW CRA Page 4 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 Chair Hardemon: So if it's not in substantially the attached form, then there's no expectation that it can come back in a way that is like what we see here, and that's part of my concern when I hear you say -- If it is not in substantially the attached form, then what form shall it be in, besides being acceptable to you? Because I would think that it needs to be acceptable to this body, and that's why we have it as "substantially the attached form," and then the minor differences can be worked out amongst the lawyers. But my fear is, the way that you've now addressed the language, it doesn't give any of us any reasonable expectation that this document is going to be the way that we expect it to be. Mr. Woods: I think it is going to be in the form that you see it here; it's just that -- The two changes that Mr. Bloom just spoke of are pretty much the more substantive changes. Mr. Bloom: To clarify, as well, it's a form that was attached. It has blanks for the timing to get your financing; blanks on the due diligence; blanks on information regarding who the developer is. So we know the developer's asked to have till October 1, 2018, to obtain their financing, which would give them the right to go through not one, but two cycles with the finance -- the Housing Finance Authority. It will reflect that the developer will have one year from the date that they get that final approval to get all their plans approved, and get a building permit to close the transaction. It will reflect a 90-day due diligence period. It will reflect a $10, 000 initial deposit; a $10, 000 additional deposit. Chair Hardemon: Before we move on in the discussion, I'd like to note the presence of Commissioner Suarez, who was here just as we started this discussion, but I know he was here before the meeting started, I'm fully aware; and also, the presence of Commissioner Russell, that's just now joined us. I have another question I want to raise to my Board Members so they can have some discussion about this, but also, one of the things that you stated was the fee simple; fee simple ownership that would be given to the developer. Is there not another option that we can choose, maybe, like a 90-year lease, a 75-year lease; something that is more -- that is akin to fee simple, but not quite so much fee simple? Mr. Bloom: Absolutely. The Board could decide -- the proposal was for -- again, that's attached with like an -- either a leasehold or fee simple. The developer's requested fee simple. I think the developer can still get the tax credits and do the transaction if it's a 50- or 75-year lease, if that's the preference of the Board. The developer is here. You can, you know -- the Board can ask him that question. Chair Hardemon: Commissioner Carollo. Board Member Carollo: Thank you, Mr. Chairman. And in line with what you're saying or what you were questioning, you know, I specifically heard Mr. Bloom continue to say, "Have the executive director negotiate with the developer." I feel uncomfortable if, after that negotiation, it doesn't come back to this Board, and I think, in essence, that's in line with what you're saying; "in substantially the attached form." So if it's not substantially in the attached form, then I feel uncomfortable that it doesn't come back to this Board, and it's actually in the hands of our special counsel -- Chair Hardemon: No, I -- Board Member Carollo: -- and not this Board. Chair Hardemon: -- completely understand. Can the language work with "substantially the attached form" and in acceptable condition to special counsel? Mr. Bloom: I think what we should do to -- here is the issue -- is that for this transaction to work in a timely fashion, the application has to be filed with the Florida Housing Authority on Thursday so that to the extent that business decisions are clarified now, they SEOPW CRA Page 5 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 should be read into the record as part of what the Board approves so that -- certainly, it's not the intention of the executive director and special counsel to be making any business decisions; it's only a question of documenting the decision that the Board has made, or the executive director has made. Chair Hardemon: Right. So then, there should be a better answer or recommendation than just striking "in substantially the attached form." Maybe it can be some hybrid of language, so it is in substantially the attached form, and also acceptable to you. Or are you saying that because --? Mr. Bloom: We could -- "substantially the form attached, with the following changes," and so we could put in there the deposits; we can put in there the timing for the transaction; we could put in whether it's going to be leasehold or fee simple, so the Board can be making those decisions. Chair Hardemon: That makes better sense. Commissioner Suarez. Board Member Suarez: Thank you, Mr. Chair. I have a couple questions. One question is, I presume the reason why we're structuring this deal as a 9 percent deal is because we sort of spent all the money that we could on 4 percent deals. Mr. Woods: (UNINTELLIGIBLE) have any more money. Chair Hardemon: Right. Board Member Suarez: So my first question to you is, is there anything that prevents us - - say, for example, if we extend the CRA's life -- from converting this to a 4 percent deal from a 9 percent deal? Mr. Woods: Well, that's Plan "B." Board Member Suarez: What do you mean by "Plan 'B'"? I got it. Mr. Woods: It's Plan "B." Board Member Suarez: But, I mean, is there anything in this agreement that would prevent us -- Mr. Woods: No. Board Member Suarez: -- from doing this as a 4 percent deal, assuming that we got the funds somehow to make this a 4 percent deal? Mr. Woods: The only thing that would prevent us from doing that is if he was fortunate enough to actually get the 9 percent credits; then we won't need to do it. Board Member Suarez: Of course. Mr. Woods: So -- Board Member Suarez: And we wouldn't want to under that circumstance. Mr. Woods: -- he'll have a year from this time -- he'll have a year to be able to submit to Florida Housing twice: once on Thursday; and then next year, around this time again, if he's not fortunate enough. Once that happens, then if it's a fee simple transaction, it reverts back to us. Hopefully, by that time, we will have done our finding of necessity and gone to all of the boards, gotten approval to extend the life of the CRA; and then at SEOPW CRA Page 6 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 that point, we can potentially go and do another bond issuance and put this as a project, you know, in our bond issuance. Board Member Suarez: Thank you. I have a follow-up question. On page 7, Provision Number 8, where it talks about financing, and you talk about they have two -- basically two tax credit cycles to get 9 percent, a 9 percent deal, and you talk about the sort of special 9 percent deals that deal with redevelopment areas, which makes sense, actually. It makes sense that the State would sort of -- hopefully create some sort of a preference for redevelopment areas. Mr. Woods: Right. Board Member Suarez: The question I have is, it says here, "If the developer does not obtain the award of the tax credits, or obtains a commitment for the loan by the end of the financing period, the developer may terminate this agreement; in which event, the escrow shall return to" -- I mean, I can understand why the developer would have that right. What I don't understand is, why wouldn't we also have that right? Mr. Woods: No, we -- I mean, I think at that point, we can have -- I mean, again, we can write it to where -- Board Member Suarez: I think -- Mr. Woods: -- it reverts to us automatically. Board Member Suarez: Okay. Is there another provision that would do that? Mr. Bloom: No, no. The question would be -- either the developer would have the right to terminate, because he didn't get -- Board Member Suarez: Of course. Mr. Bloom: -- the 9 percent credits, or he could elect to continue; in which case, his deposit at that point would be -- $20, 000 would be at risk if he didn't complete the transaction within a year after that time period had elapsed. Board Member Suarez: Okay. So you're saying is, for two years, he gets the right to go for 9 percent tax credits. If he doesn't -- if he's not able to do it in two years, then he can either cancel or he gets another year to finance it on his own? Mr. Bloom: Well, he's -- but in that other year, he's got to design it and get a building permit, and be ready to close. Board Member Suarez: And otherwise, his deposit is in jeopardy? Mr. Bloom: Correct. Board Member Suarez: Okay. Mr. Bloom: And he'd also at that point, obviously, be expending significant dollars, preparing the plans and specs, which won't have occurred at this point. Board Member Suarez: That's fine. I just want to make sure that when I read here that he has an option to do "X" -- Mr. Bloom: Right. SEOPW CRA Page 7 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 Board Member Suarez: -- that there's a good reason. If we're not -- we don't have the same option, then there should be a reason why we don't have that option. And you're explaining that the reason why is because we're giving him an additional year, and he's putting his deposit, subject to forfeiture. Mr. Bloom: Correct. Board Member Suarez: Okay. That's fine. Chair Hardemon: Commissioner Gort. Vice Chair Gort: I'll wait till — Chair Hardemon: Commissioner. Board Member Russell: Thank you, Mr. Chairman. I apologize if I missed this in the introduction of this item. Are we naming the developer in this, as of today -- Mr. Woods: Yes. Board Member Russell: -- as a floor amendment today? Mr. Woods: Yes, yes. Board Member Russell: Have we listed that already? Mr. Woods: It's Magellan Housing. Mr. Bloom: No. It's Residents [sic] Point Apartments, LLC (Limited Liability Company). Mr. Woods: Oh, I'm sorry. Well, the developer is -- So you're asking for the developer or the actual project name? Board Member Russell: The -- no. The RFP winner; the one who will be in the contract with this. Mr. Woods: It's Renaissance Point Apartments. Board Member Russell: All right. So we're doing that as a floor amendment today? Mr. Woods: Yes, right. Board Member Russell: Okay. Vice Chair Gort: Let me ask a question. Wasn't this part of the project that was presented to us about two, three years ago, where it's going to be two components; phase one and phase two? Mr. Woods: This is a scattered -site deal. You're going to have 24 units on 16th and 3rd; and then the remain -- the 36 behind the Overtown Shopping Center. Right. Chair Hardemon: So -- Board Member Suarez: I move -- SEOPW CRA Page 8 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 Chair Hardemon: -- some of those business terms -- I mean, the -- you know, I would like to see that our community -- which today is the CRA -- we represent the community in a lot of the properties that we own, so we have our community, which, of course, is the CRA, within -- all this property will probably end up going back to the City of Miami, but the whole idea is to continue to have affordable housing in this community. And so, I think one of the ways we do that is by retaining some sort of ownership in the land that we have. So I think, in a deal like this, it would make good sense for us to retain some form of ownership. So, Commissioner Suarez, I don't know if you were here when I initially said this, but what I see that as is giving them a long-term lease of 75 years, 99 years; something that's akin to ownership, but not quite that. So 100 years from now, 75 years from now, they'll still have an opportunity for people who say, "'Towners for Life," will would actually have the opportunity to stay there, if they choose to rent. Mr. Woods: Let me -- One of the reasons that not only this developer, but developers that we've worked with in the past prefer a fee simple transaction as opposed to a long- term lease is the financing. I think may -- Commissioner Gort may be the only one that was here when we were doing Jazz Village, and we could not get the project done, because we had a long-term lease, and the bank was not -- wouldn't get their debt financing. This project, one of the best things about this is that it wouldn't require any financing from the CRA, but I think he would have to get some sort -- some debt. And sometimes, banks will give a hard time when there isn't a fee simple ownership. And that's not to say that that'll be the case in this situation, but that's why they usually prefer to have fee simple transaction as opposed to a leasehold. Chair Hardemon: Sir. Nick Inamdar: Commissioners, how are you? Good afternoon. Nick Inamdar; address is at 445 Northwest 4th Street, Miami, Florida. Thank you for the opportunity. So a little background, Commissioners. As the executive director mentioned, this is a once -a -year opportunity with Florida Housing Finance Corporation. They used to just have a lottery - based system for 9 percent credits. A couple years ago, they started targeted RFPs, and one of the RFPs that they created is called a 'Revitalization RFP." As the director mentioned, the RFP is, unfortunately, due on Thursday, so time is of the essence. But interestingly, they have not received an application from Miami -Dade County -- anywhere in the County -- the previous two years. And so, as I was evaluating opportunities to get this project funded, this certainly stood out, with all the great things that the CRA is doing. Unlike the lottery system, this RFP is more specific to -- it's essay - based, it's point -based, so they want you to tell them the story, you know, what's been happening in the community, and I think if we have the opportunity to tell that story, you know, we should have a pretty good shot of winning, because I personally don't think that there's a revitalization entity anywhere in the State that's done as much as the Southeast Overtown/Park West CRA. So our proposal is for 60 units. It is a scattered site. 20 percent of the units would be market; 70 percent of the units would be at 60 percent area median income or below. The remaining 10 percent of the units would be ELI units, extremely low income, for 30 percent of residents or below. And then half of those ELI units are set aside for folks with disabilities. There's a lot of programming that's -- it's not before you today, but that will be part of this project. For instance, the disabled ELI units, their credit won't be used as a factor for tenant selection. We will be waiving security deposits. When the tenants move in, there's going to be a welcome gift provided to them in the amount of at least $300, which will include pots and pans, and glasses, because a lot of these folks, even if you provide a roof over their head, they may not necessarily have the furniture and accessories to furnish their house. In addition, they'll receive a thousand dollar gift certificate to go buy furniture, which they can keep, even if they move out. And then, there's numerous educational programs and other benefits, such as during Christmastime, they receive gift certificates to go and buy kids toys and so forth. And so, unlike a lot of what we've done in the past, the typical 9 percent lottery system, this is a much more in-depth application to the State. And Commissioner, to get SEOPW CRA Page 9 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 to your question, the equity purchasers of the tax credits -- I'm certainly open to doing a lease if that's the preference of the Board. It does complicate the deal, though. It complicates the structure of the deal. It makes -- A lot of equity purchasers of the 9 percent credits, it takes them off the table, because they don't want to do these deals. And so, it would be our strong preference to do a fee simple. But again, if it's the will of the Board, you know, we'll adjust. It's our -- Chair Hardemon: I will say, certainly, that, you know, I want to see our CRA have some of that type of decision -making when we move forward on projects. This may not necessarily be it, especially if we're not giving dollars. Land is valuable, yes; but we've given -- we've had projects where we've given land and dollars, and I think that makes a big difference with things. Commissioner Suarez. Board Member Suarez: Yeah. I was just going to say I'm not aware of any 9 percent deals where there haven't been a transfer -- a fee simple; I mean, you may have. I've never heard -- I've never seen one before. I don't know if it has or it hasn't happened. Mr. Inamdar: I'm sure they're out there, but again -- Board Member Suarez: I'd like to know more about it. Mr. Inamdar: -- you know, they're far and few between, and a lot of the investors that we shop these credits to, you know Board Member Suarez: And your affordability covenants on the 60 percent below are is 50 years, correct? Because -- Mr. Inamdar: 50 years, yes. Board Member Suarez: (UNINTELLIGIBLE) to put that for the record. Chair Hardemon: I don't, but I'm sorry to -- Mr. Inamdar: And it's our anticipation -- I'm sorry, Commissioner. It's our anticipation that the amount of equity that we'll receive and be able to bring in the community is $15.8 million. Chair Hardemon: You know, I'm comfortable moving forward without it. Board Member Suarez: I'll move it. Chair Hardemon: I know this is just something that I want us to be aware of especially when you're talking about -- like I said, in the past, we've had tremendous projects, but we've given land and a significant amount of dollars to go towards it. With that kind of money, then we can bait our own fish, if you will, to take a bite, so that's not this. You know, we're certainly out there trying to attract dollars to make this project happen, so we don't have to spend CRA dollars to bring about major changes within the area. So if we could spend someone else's money to make the reality happen for the people that live here, I think that's the best thing that we can do, so we can spend our dollars that we have on other projects that make sense for this area. So I appreciate the motion by Commissioner Suarez. Is there a second? The Chair will second -- oh, seconded by Commissioner Gort. Further discussion? Commissioner. Board Member Russell: One last question. Thank you. And the reason I asked about the name of the developer was because it obviously wasn't in the draft, so I asked my staff to reach out to the executive director and just kind of get the story on that, and I was satisfied with that story. But for the sake of transparency with the public, because SEOPW CRA Page 10 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 nobody's been able to see, by having seen the draft or the published draft who it is that won the bid that we are contracting with at this point, can you tell the story of why we're in a time crunch at this point to -- floor amendment -- add the developer's name in the agreement now? Mr. Woods: Again, when we spoke, we talked about the possibility of being able to go after this special RFP -- Board Member Russell: Yep. Mr. Woods: -- the timing was critical, so our thing was to go ahead and put out the Request for Proposals from the CRA's perspective. We put it out, and, truthfully, we didn't know how many people would actually respond. So we didn't want to put anything -- obviously, we didn't put anything in here specific, because we didn't know who would actually respond and whether they would come back with something that was more compelling when it comes to actually financing this development, so we left everything blank, intentionally, so that once we got responses and we were able to put together a review committee -- which was not necessary, because we only got one response back -- we would do our deliberations, and then we would be able to hear on the floor, talk about that, and say, you know, who we actually were able to select as the preferred developer to go after or fund the development of the 16 [sic] units, plus the additional 36 units on the back side of the shopping center. Board Member Russell: Thank you. Chair Hardemon: Is there any further discussion? Commissioner Carollo. Board Member Carollo: Mr. Chairman. Chair Hardemon: Yes. Board Member Carollo: Thank you, Mr. Chairman. We still haven't addressed our initial mention with regards to "substantially in the attached form." So are you planning on voting on this -- Chair Hardemon: Right. Board Member Carollo: -- the new language or --? Chair Hardemon: The business terms that -- well, the terms -- the business terms, really Mr. Woods: He's going to put it on the record. Mr. Bloom: Can I just chime --? Board Member Suarez: Go ahead. Mr. Bloom: You know, assuming, again, the Board is fine with a fee simple, we'll revise the draft to reflect this fee simple. It will reflect a deposit of $10,000, due two business days after the agreement is signed. It'll give a 90-day inspection period, and the inspection period -- the developer will have to put up an additional $10,000 within two days if he doesn't cancel. The developer will have to sign off on title and survey within 90 days of the effective date. The developer will have to get all land use and zoning approvals to be able to develop the property for its intended use within one year of signing the agreement. The developer will have until October 1, 2018 to obtain the 9 SEOPW CRA Page 11 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 percent tax credit to allow the developer to develop a project. If he doesn't, he'll get his deposit back. Mr. Woods: Yes, yes. Board Member Suarez: That's one year. Mr. Woods: That's one year, right. Board Member Suarez: I thought you said he had two years. Mr. Woods: He'll get -- he'll get -- this cycle -- this year and next year. Board Member Suarez: Ah, this cycle, which is about to -- Mr. Bloom: Right. Board Member Suarez: -- start. Mr. Bloom: It will reflect not less -- Board Member Suarez: Understood. Mr. Bloom: -- than 60 units with 20 percent of those units being at market; 70 percent of those units being at 60 percent ofAMI (Average Median Income) or below; 10 percent of those units being at 10 percent -- 10 percent of those units being at 30 percent of AMI or below; and was it 10 percent of the units being for ELI units? Mr. Inamdar: Yeah. 20 at market; 70 at 60 percent AMI; and the remaining 10 at -- ELI units, 30percent AMl. Mr. Bloom: 30 percent, right. We'll get schematic design documents within 120 days of the execution of the agreement. The design development documents, which require a lot more labor to put together, will be 30 days after the tax credit approval has been obtained; construction documents, 60 days after the design development documents have been approved by the executive director; closing within a hundred -- within one year from the tax credit approval being obtained. The guarantors for the project will be Jeanette Chapman, Nick Inamdar and M.A. Inamdar, so, you know, the -- Nick and his brother. Board Member Suarez: But do you need any more investment -- I mean any more negotiation flexibility? I'm sorry to jump in on your question. Board Member Carollo: No, I -- Board Member Suarez: I guess my question is, do you need any more negotiation flexibility, or is --? You know, I -- Mr. Bloom: I -- do you think -- substantially in that form, with the terms read into the record being incorporated into the agreement. Chair Hardemon: Right. So the motion then will reflect, "in substantially the attached form," as the -- and also with the comments as -- Board Member Suarez: As described on the record. Unidentified Speaker: For the additional terms. SEOPW CRA Page 12 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 Chair Hardemon: That is correct. Any further discussion? Board Member Suarez: Yeah -- Chair Hardemon: Have you finished your business -- you finished the terms? You finished reading your terms? Mr. Inamdar: I think that's it. Board Member Suarez: Yeah, and I agree. I just want to say that -- you know, and I appreciate you finding this opportunity and coming to us with this; and obviously, you guys working fast and bringing this to us. I think the -- you know, the consternation on -- and I know this is like sort of how many angels can you fit on the head of a pin? I love to debate these things, you know. "Substantially the attached form," that's, you know, to be later discussed. But I -- we've had deals that we've approved here, just as an FYI (for your information) to the Board, that a year later, when we did a "substantially attached form," a year later, still weren't approved. And so, the key is the debate that we're having here, which is, do we feel like it's ready to go in substantially the attached form, or do we want to give more latitude so that we can actually get the deal done without having to come back here a hundred times or whatever? Chair Hardemon: And Commissioner, that's partly why -- Board Member Suarez: Yeah. Chair Hardemon: -- when we have certain details that I think are outstanding that are important for us to discuss, I like to have those things ironed out before we get to a place like this, because, if not, then -- and you've seen where -- Board Member Suarez: I know. Chair Hardemon: -- there are some deadlines that are pressing, and someone says, "Well, we want it on the agenda," but I don't think it's ready to be on the agenda -- Board Member Suarez: Right. Chair Hardemon: -- because we don't have enough discussion about the items that are important to the community being put into those documents. So I think this one is not -- this one, they've come to the table with a lot of the things that we've considered in the past with our RFP that we've done, and so, this one seems to be ready. Mr. Bloom: The plan -- and the only way that the developer can reach the schedule is we negotiate, make the revisions, agree upon them, and the agreement gets signed tomorrow so it can be in on Thursday. Board Member Suarez: Done. Let's do it. Good luck. Chair Hardemon: Any further discussion? Board Member Suarez: Good luck. Vice Chair Gort: Can you give me the breakdown again; the breakdown of the apartments? Mr. Inamdar: 20 percent market -- SEOPW CRA Page 13 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 Board Member Suarez: Right. Mr. Inamdar: -- 70 percent at 60 percent AMI or below; and 10 percent ELI, which is 30 percent AMI or below; and then half of those ELI units will be set aside for individuals with disabilities. Vice Chair Gort: That's it. Okay. Good mix. Board Member Suarez: Right. Chair Hardemon: Any further discussion? Hearing none, all in favor, say "aye." The Board (Collectively): Aye. Chair Hardemon: All against? Motion passes. Mr. Inamdar: Commissioners, thank you. There's sunglasses up here. Chair Hardemon: The meeting has concluded. Thank you very much. Thank you, everyone. 2. CRA RESOLUTION 1974 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING A GRANT, IN AN AMOUNT NOT TO EXCEED $112,000, TO SUITED FOR SUCCESS, INC. TO UNDERWRITE COSTS ASSOCIATED WITH THE PROVISION OF JOB TRAINING AND OTHER EMPLOYMENT SUPPORT SERVICES TO JOB SEEKERS FROM THE REDEVELOPMENT AREA; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; FUNDS TO BE ALLOCATED FROM SEOPW TAX INCREMENT FUND, ENTITLED "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File # 1974 Backup ENACTMENT NUMBER: CRA-R-17-0015 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Frank Carollo, Commissioner AYES: Hardemon, Gort, Carollo ABSENT: Russell, Suarez Chair Hardemon: Is there -- I mean, this body can do one of two things: We can move the entirety of the agenda at one time, or you can actually -- you can hear them individually. Or is there an item that we wish to discuss? Is there an item that anybody wants to discuss? Vice Chair Gort: RFP (Request for Proposals) [sic] number 1. SEOPW CRA Page 14 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 Chair Hardemon: Okay. Then, let's do this: Then is there a motion to approve RE.2, 3, and 4? Vice Chair Gort: Move it. Board Member Carollo: Second. Chair Hardemon: It's been properly moved and seconded to approve item -- agenda items 2, 3, and 4. Is there any further discussion on those items? Hearing none, all in favor, say "aye." The Board (Collectively): Aye. Chair Hardemon: Motion passes on items 2, 3, and 4. 3. CRA RESOLUTION 1975 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING A GRANT, IN AN AMOUNT NOT TO EXCEED $225,000, TO HEADLINER MARKET GROUP, INC. TO UNDERWRITE COSTS ASSOCIATED WITH THE PRODUCTION OF THE 2017 OVERTOWN MUSIC & ARTS FESTIVAL, SCHEDULED TO OCCUR ON JULY 15, 2017; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; FUNDS TO BE ALLOCATED FROM SEOPW TAX INCREMENT FUND, ENTITLED "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. Note for the Record: DO NOT CERTIFY. SCRIVENER'S ERRO PENDING CORRECTION BY STAFF COUNSEL. File # 1975 Backup ENACTMENT NUMBER: CRA-R-17-0016 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Frank Carollo, Commissioner AYES: Hardemon, Gort, Carollo ABSENT: Russell, Suarez Note for the Record: For minutes referencing Item Number 3, please see Item Number 2. SEOPW CRA Page 15 Printed on 5/8/2017 Southeast Overtown/Park West CRA Meeting Minutes March 21, 2017 4. CRA RESOLUTION 1977 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, AUTHORIZING A GRANT, IN AN AMOUNT NOT TO EXCEED $200,000, TO NEIGHBORS AND NEIGHBORS ASSOCIATION, INC., TO UNDERWRITE COSTS ASSOCIATED WITH THE CONTINUED OPERATION OF THE BUSINESS INCUBATOR AND DEVELOPMENT PROGRAM ("PROGRAM"); FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; ALLOCATING FUNDS FROM SEOPW, "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. ADJOURNMENT File # 1977 Backup ENACTMENT NUMBER: CRA-R-17-0017 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Frank Carollo, Commissioner AYES: Hardemon, Gort, Carollo ABSENT: Russell, Suarez Note for the Record: For minutes referencing Item Number 4, please see Item Number 2. The meeting adjourned at 4:41 p.m. SEOPW CRA Page 16 Printed on 5/8/2017