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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #12068 Date: 06/06/2022 Commission Meeting Date: 01/12/2023 Requesting Department: Department of Housing and Community Development Sponsored By: District Impacted: All Type: Resolution Subject: Auth. City Manager - Conveyance of City Owned Property SMV Capital Group Purpose of Item: AUTHORIZING THE CITY MANAGER TO CONVEY, WITH AFFORDABLE HOUSING RESTRICTIONS AND AUTOMATIC REVERTER PROVISIONS, THE CITY OF MIAMI ("CITY") OWNED PROPERTIES LOCATED AT 1755 NW 2 CT AND 6245 NW 1 CT, MIAMI, FLORIDA ("PROPERTIES"), AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED, TO SMV CAPITAL GROUP, LLC., ("DEVELOPER"), FOR THE DEVELOPMENT OF AFFORDABLE HOMEOWNERSHIP HOUSING; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS, EXTENSIONS, AND MODIFICATIONS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY, FOR THE COMPLETION OF SAID TRANSACTION. Background of Item: On April, 2021, SMV Capital Group, LLC., submitted a Letter of Interest for the development of affordable homeownership housing. SMV Capital Group, LLC., proposes the development of Affordable Housing Homeownership, available for eligible residents whose annual income is at or below eighty percent (80%) of area median income ("AMI") as published annually by the United States Department of Housing and Urban Development ("HUD"). The affordable housing restrictions and automatic reverter provisions contained in the conveying instruments require the Properties to automatically revert to the City if (i) the Properties are not fully developed within twenty-four (24) months of the date of closing as evidenced by a Certificate of Occupancy, where the twenty-four (24) month requirement may be amended by the Director of the Department of Housing and Community Development ("Director") by a written communication and (ii) the Properties are not solely used for Affordable Housing Homeownership. The properties will be conveyed through purchase and sale agreements ("Agreements"). To convey said Properties, the City must receive from the Developer (i) evidence that the Developer has received all necessary permits needed to construct the units, (ii) evidence that financial commitments from the lender(s) have been received, (iii) any mortgages obtained by the Developer on the Properties will be subject to the approval of the Director, and (iv) the closing of the Agreements will occur simultaneously with the closing of the construction financing by the lender, if any. Section 29-B(a) of the Charter of the City of Miami, Florida, as amended ("City Charter"), provides for the waiver of competitive bidding and other requirements when "conveying properties to implement housing programs or projects which are intended to benefit persons or households with low and/or moderate income, the criteria of which to be provided for by federal and/or state law or by the city commission". The City's Administration recommends the conveyance, with parcel reverted of the properties, legally described in Exhibit "A", attached and incorporated, for the development of affordable homeownership housing on City -owned land. Budget Impact Analysis Item is NOT funded by Bonds Item is NOT Related to Revenue Item is an Expenditure Total Fiscal Impact: Reviewed B Department of Community and Economic Development Review Completed 06/06/2022 10:25 AM Office of Management and Budget Office of Management and Budget City Manager's Office Legislative Division Office of the City Attorney Office of the City Attorney City Commission City Commission City Commission Luis Hernandez -Torres Marie Gouin Arthur Noriega V Valentin J Alvarez Richard Appleton Victoria Mendez Nicole Ewan Nicole Ewan Nicole Ewan George Mensah Budget Analyst Review Budget Review City Manager Review Legislative Division Review ACA Review Approved Form and Correctness Meeting Meeting Meeting Department Head Completed Completed Completed Completed Completed Completed Completed Completed Completed 06/09/2022 6:06 PM 06/13/2022 10:34 AM 06/13/2022 4:44 PM 06/17/2022 7:42 AM 06/23/2022 3:10 PM 06/24/2022 8:41 AM 07/14/2022 9:00 AM 07/19/2022 9:00 AM 01/12/2023 9:00 AM City of Miami Legislation Resolution City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 12068 Final Action Date:1/12/2023 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), PURSUANT TO SECTION 29-B(A) OF THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AUTHORIZING THE CITY MANAGER TO CONVEY, WITH AFFORDABLE HOUSING RESTRICTIONS AND AUTOMATIC REVERTER PROVISIONS, THE CITY OF MIAMI-OWNED PROPERTIES LOCATED AT 1755 NORTHWEST 2 COURT AND 6245 NORTHWEST 1 COURT, MIAMI, FLORIDA, AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED, TO SMV CAPITAL GROUP LLC, A FLORIDA LIMITED LIABILITY COMPANY, FOR THE DEVELOPMENT OF AFFORDABLE HOMEOWNERSHIP HOUSING; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS, EXTENSIONS, AND MODIFICATIONS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. WHEREAS, in April 2021, SMV Capital Group LLC, a Florida limited liability company ("Developer"), submitted a letter of interest to the City of Miami ("City") for the development of affordable homeownership housing; and WHEREAS, the Developer proposes the development of affordable homeownership housing, which shall be available for eligible residents whose annual income is at or below eighty percent (80%) of area median income, as published annually by the United States Department of Housing and Urban Development; and WHEREAS, the affordable housing restrictions and automatic reverter provisions contained in the conveying instrument(s) shall require that 1755 Northwest 2 Court and 6245 Northwest 1 Court, Miami, Florida, as more particularly described in Exhibit "A," attached and incorporated (collectively, "Properties"), to automatically revert to the City if (i) the Properties are not fully developed within twenty-four (24) months of the date of closing as evidenced by a Certificate of Occupancy, where the twenty-four (24) month requirement may be amended by the Director of the Department of Housing and Community Development ("Director") by a written communication and (ii) the Properties are not solely used for affordable homeownership housing; and WHEREAS, the Properties will be conveyed through purchase and sale agreements ("Agreements") and quit claim deeds; and WHEREAS, to convey said Properties, the City must receive from the Developer (i) evidence that the Developer has received all necessary permits needed to construct the units, (ii) evidence that financial commitments from the lender(s) have been received, (iii) any mortgages obtained by the Developer on the Properties will be subject to the approval of the Director in writing, and (iv) the closing/execution of the Agreements will occur simultaneously with the closing of the construction financing by the lender(s), if any; and WHEREAS, Section 29-B(a) of the Charter of the City of Miami, Florida, as amended ("City Charter"), provides for the waiver of competitive bidding and other requirements when "conveying properties to implement housing programs or projects which are intended to benefit persons or households with low and/or moderate income, the criteria of which to be provided for by federal and/or state law or by the City Commission"; and WHEREAS, the City's Administration recommends the conveyance, with affordable housing restrictions and automatic reverter provisions, of the Properties to the Developer for the development of affordable homeownership housing; 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. Pursuant to Section 29-B(a) of the City Charter, the City Manager is authorized' to convey, with affordable housing restrictions and automatic reverter provisions, the City -owned Properties to the Developer for the development of affordable homeownership housing. Section 3. The City Manager is authorized' to negotiate and execute any and all necessary documents, including amendments, extensions, and modifications, all in forms acceptable to the City Attorney, for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: ndez, ity Attor ey 6/24/2022 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.