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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #13650 Date: 03/10/2023 Commission Meeting Date: 04/27/2023 Requesting Department: Department of Housing and Community Development Sponsored By: Manolo Reyes District Impacted: District 4 Type: Resolution Subject: Bid Waiver - Ground Lease Agreement - 5215 Flagler Street, LLC Purpose of Item: AUTHORIZING THE CITY MANAGER TO EXECUTE A NINETY NINE (99) YEAR GROUND LEASE AGREEMENT ("LEASE"), BETWEEN THE CITY OF MIAMI ("CITY") AND 5215 FLAGLER STREET, LLC; ("DEVELOPER") ON THE CITY -OWNED PARCEL OF LAND LOCATED AT 5215 WEST FLAGLER STREET, MIAMI, FLORIDA, AS MORE PARTICULARLY DESCRIBED IN ATTACHMENT "A," ATTACHED AND INCORPORATED, FOR THE DEVELOPMENT OF AFFORDABLE ELDERLY RENTAL HOUSING PROJECT FOR LOW-INCOME SENIORS; 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; SUCH LEASE SUBJECT UPON SUCCESSFUL REMEDIATION OF EXISTING ENVIRONMENTAL CONDITIONS. Background of Item: On June 10, 2021, pursuant to City of Miami Resolution No. 21-0229, the City Commission authorized the purchase of the property located 5215 West Flagler Street, Miami, Florida, as legally described in Attachment "A," attached and incorporated ("Parcel"), in the amount of $1,505,000.00 using Miami Forever Limited Ad Valorem Bonds funds ("Funds"). On February 2, 2023, 5215 Flagler Street LLC., submitted the city a Letter of Request for the development of affordable rental housing project for low-income seniors. The proposed project is contingent upon successful remediation of existing environmental conditions and an award of 38 Project -based Vouchers by Miami -Dade County. 5215 Flagler Street, LLC; ("Developer") has completed various affordable housing developments within the city and currently has others at various stages of construction and is currently in good standing with the city. It is the intent of the Developer and the City for the Project to be developed as an affordable rental housing project for low-income seniors for 99 years. Section 29-B(a) of the City Charter allows for the conveyance or disposition of City - owned property for the implementation of projects which are intended to benefit persons or households with low and/or moderate income. The City shall require the following in order to lease the Parcel to the Developer: (i) evidence satisfactory to the Director of the Department of Housing and Community Development ("Director") that financial commitments from the lender or lenders have been received; (ii) any mortgages obtained by the Developer on the Parcel(s) will be subject to the approval of the Director; and (iii) the closing of the lease agreement occurs simultaneously with the closing of the construction financing by the lender(s), if any. The approval of the ninety-nine (99) year Lease shall be subject to compliance with all laws, regulations, or restrictions, upon successful remediation of existing environmental conditions and any other necessary documents, all in form(s) acceptable to the City Attorney. Budget Impact Analysis Item is NOT Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: $0 Department of Community and Economic Development Review Completed Office of Management and Budget Office of Management and Budget City Manager's Office City Manager's Office Legislative Division Office of the City Attorney Office of the City Attorney City Commission Office of the Mayor Office of the City Clerk Office of the City Clerk Reviewed B 03/10/2023 8:11 AM Luis Hernandez -Torres Marie Gouin Larry M. Spring Arthur Noriega V Valentin J Alvarez Xavier Alban Victoria Mendez Maricarmen Lopez Mayor's Office City Clerk's Office City Clerk's Office George Mensah Department Head Budget Analyst Review Completed Budget Review Completed Assistant City Manager Review Completed City Manager Review Completed Legislative Division Review Completed ACA Review Completed Approved Form and Correctness Completed Meeting Completed Unsigned by the Mayor Completed Signed and Attested by the City Clerk Completed Rendered Completed 03/10/2023 11:51 AM 03/10/2023 12:23 PM 03/14/2023 2:10 PM 03/14/2023 3:08 PM 03/29/2023 11:59 AM 04/18/2023 1:08 PM 04/18/2023 1:37 PM 04/27/2023 9:00 AM 05/06/2023 8:36 PM 05/06/2023 8:46 PM 05/08/2023 9:55 AM City of Miami Legislation Resolution Enactment Number: R-23-0188 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 13650 Final Action Date:4/27/2023 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE CITY MANAGER'S FINDING, ATTACHED AND INCORPORATED AS ATTACHMENT "B," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS FOR THE CITY OF MIAMI ("CITY") PURSUANT TO SECTIONS 29-B(A) OF THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CHARTER"), AND SECTION 18-182(C) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"); WAIVING THE REQUIREMENTS FOR SAID PROCEDURES; AUTHORIZING THE CITY MANAGER TO EXECUTE A NINETY NINE (99) YEAR GROUND LEASE AGREEMENT ("LEASE"), BETWEEN THE CITY OF MIAMI ("CITY") AND 5215 FLAGLER STREET, LLC; ("DEVELOPER") ON THE CITY -OWNED PARCEL OF LAND LOCATED AT 5215 WEST FLAGLER STREET, MIAMI, FLORIDA, AS MORE PARTICULARLY DESCRIBED IN ATTACHMENT "A," ATTACHED AND INCORPORATED, FOR THE DEVELOPMENT OF AFFORDABLE ELDERLY RENTAL HOUSING PROJECT FOR LOW-INCOME SENIORS; 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; SUCH LEASE SUBJECT UPON SUCCESSFUL REMEDIATION OF EXISTING ENVIRONMENTAL CONDITIONS. WHEREAS, on June 10, 2021, pursuant to City of Miami ("City") Resolution No. 21- 0229, the City Commission authorized the purchase of the property located 5215 West Flagler Street, Miami, Florida, as legally described in Attachment "A," attached and incorporated ("Parcel"), in the amount of One Million, Five Hundred Five Thousand and 00/100 Dollars ($1,505,000.00) using Miami Forever Limited Ad Valorem Bonds funds ("MFB Funds"); and WHEREAS, on February 2, 2023, 5215 Flagler Street, LLC, submitted to the City a Letter of Request for the development of affordable rental housing project for low-income seniors ("Project"); and WHEREAS, the proposed Project is contingent upon successful remediation of existing environmental conditions on the Parcel and an award of thirty-eight (38) Project -based Vouchers by Miami -Dade County; and WHEREAS, 5215 Flagler Street, LLC ("Developer"), is a Florida limited liability company created for the development of the Project; and WHEREAS, Related Urban (RUDG, LLC) is the parent company of Developer and RUDG, LLC has completed various affordable housing developments within the City and currently has others at various stages of construction and is currently in good standing with the City; and WHEREAS, it is the intent of the Developer and the City for the Project to be developed as an affordable rental housing project for low-income seniors on the Parcel under a ninety-nine (99) years ground lease ("Lease"); and WHEREAS, on March 28, 2023, the City's Housing and Commercial Loan Committee approved awarding One Million, Seven Hundred Thousand and 00/100 Dollars ($1,700,00.00) in HOME Investment Program Partnership funds and Three Million, Nine Hundred Thousand and 00/100 Dollars ($3,900,000.00) in MFB Funds for the Development of the Project; and WHEREAS, Section 29-B(a) of the City Charter allows for the conveyance or disposition of City -owned property for the implementation of projects which are intended to benefit persons or households with low and/or moderate income; and WHEREAS, the City shall require the following in order to lease the Parcel to the Developer: (i) evidence satisfactory to the Director of the Department of Housing and Community Development ("Director") that financial commitments from the lender or lenders have been received; (ii) any mortgages obtained by the Developer on the Parcel(s) will be subject to the approval of the Director; and (iii) the closing of the lease agreement occurs simultaneously with the closing of the construction financing by the lender(s), if any; and WHEREAS, the approval of the Lease shall be subject to compliance with all applicable federal, State of Florida, and local laws, rules, regulations, or restrictions; upon successful remediation of existing environmental conditions; and the negotiation and execution of any other necessary documents all in form(s) acceptable to the City Attorney, for the purposes stated herein and in furtherance of the Project; 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. By a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, the City Manager's determinations, findings, and recommendations, attached and incorporated as Attachment "B," pursuant to Sections 29-B(a) of the City Charter are ratified, approved, and confirmed and the City Commission hereby waives the requirements for said procedures. Section 3. The City Manager is authorized' to negotiate and execute a ninety-nine (99) years ground lease agreement, between the City and 5215 Flagler Street, LLC, for the city - owned parcel of land located at 5215 West Flagler Street, Miami, Florida, as legally described in Attachment "A," attached and incorporated, for the development of an affordable elderly rental housing project for low-income seniors. Section 4. The City Manager is further authorized' to negotiate and execute any and all other necessary documents, all in forms acceptable to the City Attorney, for the purposes stated herein. 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 4/1872023 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.