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Home My WebLink AboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #7450 Date: 05/14/2020 Commission Meeting Date: 05/14/2020 Requesting Department: City Commission Sponsored By: Keon Hardemon District Impacted: Type: Resolution Subject: Right of Reverter - Residences at Dr. King Boulevard, LTD Purpose of Item: <Insert Purpose of Item Here> Background of Item: <Insert Background Here> Budget Impact Analysis Total Fiscal Impact: <Insert Account information Here> Reviewed B City Commission Todd B. Hannon Meeting Completed 05/14/2020 9:00 AM Legislative Division Valentin J Alvarez Legislative Division Review Completed 05/15/2020 1:08 PM Office of the City Attorney Richard Appleton ACA Review Completed 05/19/2020 6:26 PM Office of the City Attorney Barnaby L. Min Deputy Attorney Review Completed 05/20/2020 9:31 AM Office of the City Attorney Victoria Mendez Approved Form and Correctness Completed 05/20/2020 6:36 PM Office of the Mayor Mayor's Office Unsigned by the Mayor Completed 05/26/2020 7:38 PM Office of the City Clerk City Clerk's Office Signed and Attested by the City Clerk Completed 05/26/2020 7:44 PM Office of the City Clerk City Clerk's Office Rendered Completed 05/26/2020 7:45 PM City of Miami Legislation Resolution Enactment Number: R-20-0157 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 7450 Final Action Date:5/14/2020 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE MODIFICATION OF THE CITY OF MIAMI'S ("CITY") RIGHT OF REVERTER IN ORDER TO BE MORE CONSISTENT WITH FREDDIE MAC'S LENDING STANDARDS FOR THE PROJECT ("PROJECT") BEING DEVELOPED BY RESIDENCES AT DR. KING BOULEVARD, LTD., A FLORIDA LIMITED PARTNERSHIP ("RDK"), PROVIDED THAT THE CONVEYANCE IS IN FULL COMPLIANCE WITH THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, PARTICULARLY SECTION 29, THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AND ANY AND ALL OTHER LOCAL, STATE, AND FEDERAL RULES; FURTHER PROVIDED THAT THE CITY'S DECLARATION OF RESTRICTED COVENANTS IS RECORDED SIMULTANEOUSLY WITH THE DEED AND BEFORE ANY OF THE PROJECT'S LENDERS' OR INVESTOR(S)' DOCUMENTS; FURTHER PROVIDED THAT BEFORE RDK, ITS SUCCESSORS, TRANSFEREES, OR ASSIGNS (COLLECTIVELY, "DEVELOPER") MAY TRANSFER, ATTEMPT TO TRANSFER, OR ENCUMBER THE PROPERTIES OR THE PROJECT, OR ANY PORTION THEREOF, THE DEVELOPER MUST FIRST OBTAIN THE CITY'S PRIOR WRITTEN AUTHORIZATION; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY AND BOND COUNSEL, FOR SAID PURPOSE. WHEREAS, pursuant to Resolution Nos. 17-0512 and 19-0141, the City Commission authorized the conveyance of the City of Miami ("City") owned properties located at 6240 Northwest 15 Avenue and 1501, 1515, 1525, 1535, 1551, 1560, 1520, and 1500 Northwest 62 Street, Miami, Florida (collectively, "Properties"), with affordable/workforce rental housing restrictions and automatic reverter provisions, to Residences at Dr. King Boulevard, Ltd., a Florida Limited Partnership ("RDK"), for the construction of affordable/workforce housing for eligible low to moderate income persons ("Project"); and WHEREAS, the Properties were acquired in whole or in part with funding from the City's limited ad valorem tax exempt homeland defense/neighborhood capital bonds; and WHEREAS, on December 14, 2017, a Purchase and Sale Agreement ("Agreement") for the Properties was executed for a total amount of $155,621.12, which was the amount of the City' bond funds expended on the Properties and which is below fair market value, as more particularly described in Exhibit "A," attached and incorporated; and WHEREAS, Section 29 of the Charter of the City of Miami, Florida, as amended ("City Charter"), allows the City to convey property for below fair market value to construct housing which is intended to benefit persons or households with low and/or moderate income; and WHEREAS, RDK and its lenders are requesting that the reverter provision approved by Resolution Nos. 17-0512 and 19-0141 be eliminated at the time that the City's Building Department issues a Certificate of Occupancy ("C.O.") instead of reverter continuing during the thirty (30) year period in which the Properties are to remain affordable ("Affordability Period") as provided for in the Agreement previously executed by the City and RDK; and WHEREAS, when conveying land below fair market value pursuant to Section 29 of the City Charter, the City ensures that it fully complies with the City Charter by requiring a reverter provision in the deed allowing the City to quickly come into compliance with the City Charter if necessary; and WHEREAS, the City agrees that the reverter provision will be extinguished at the moment that the C.O. is issued, provided that (i) the conveyance still complies with the City Charter, particularly Section 29, and all other local, state, and federal rules, (ii) the City's Declaration of Restricted Covenants ("Covenant") is recorded simultaneously with the deed and before any lenders' or investor(s)' documents, and (iii) before RDK, its successors, transferees, or assigns (collectively, "Developer") may transfer, attempt to transfer, or encumber the Properties or the Project, or any portion thereof, the Developer must first obtain the City's prior written authorization; and WHEREAS, except as modified hereby, the requirements contained in Resolution Nos. 17-0512 and 19-0141 are still in full force and effect; and WHEREAS, pursuant to Section 2-33(e) of the Code of the City of Miami, Florida, as amended ("City Code"), the City Commission unanimously deems this Resolution to be of an emergency nature in order to address the matters during the current legislative session; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The modification of the City's right of reverter in order to be more consistent with Freddie Mac's lending standards for the Project being developed by RDK, provided that the conveyance is in full compliance with the City Charter, the City Code, and all other local, state, and federal rules, further provided that the City's Covenant is recorded simultaneously with the deed and before any of the Project's lenders' or investor(s)' documents, and further provided that before the Developer may transfer, attempt to transfer, or encumber the Properties or the Project, or any portion thereof, the Developer must first obtain the City's prior written authorization, is authorized.' Section 3. The transfer restriction stated above is not intended to apply to transfers by mortgagees that have been approved by the City for this Project provided that the Project remains subject to the City's affordability requirements. Section 4. The City Manager is further authorized1 to negotiate and execute any and all necessary documents, all in a form acceptable to the City Attorney and Bond Counsel, for said purpose. 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, City Attor ey 5/20/2020 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.