HomeMy WebLinkAboutBack-Up DocumentsCity of Miami
Resolution R-18-0177
Legislation
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 3958 Final Action Date: 5/10/2018
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE ALLOCATION OF COMMUNITY DEVELOPMENT BLOCK
GRANT ("CDBG") FUNDS IN THE AMOUNT OF $1,530,000.00 FROM 2017-
2018 UNALLOCATED CDBG FUNDS, DE -OBLIGATED FUNDS FROM PRIOR
YEARS ACTIVITIES, AND UNALLOCATED PROGRAM INCOME TO THE
DEPARTMENT OF REAL ESTATE AND ASSET MANAGEMENT FOR THE
PURCHASE OF THE CARVER THEATER LOCATED AT 6016 NORTHWEST
7TH AVENUE, MIAMI, FLORIDA ("THEATER"), FOR COMMUNITY
ACTIVITIES; AUTHORIZING THE CITY MANAGER TO EXECUTE A
PURCHASE AND SALE AGREEMENT ("AGREEMENT"), IN SUBSTANTIALLY
THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI ("CITY"), AS
PURCHASER, AND GATOR CARVER THEATER LLC ("GATOR"), AS SELLER,
FOR THE ACQUISITION OF SAID THEATER; ALLOCATING THE ABOVE
DESCRIBED FUNDS TO COVER THE COST OF SAID ACQUISITION,
INCLUSIVE OF THE COST OF A SURVEY, ENVIRONMENTAL REPORT,
TITLE INSURANCE, SECURING THE PROPERTY, AND RELATED CLOSING
COSTS ASSOCIATED WITH SAID ACQUISITION IN ACCORDANCE WITH
THE TERMS AND CONDITIONS OF THE AGREEMENT; FURTHER
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY
AND ALL OTHER DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY, INCLUDING AMENDMENTS, RENEWALS, EXTENSIONS, AND
MODIFICATIONS, AS MAY BE NECESSARY FOR SAID PURPOSE, SUBJECT
TO ALL FEDERAL, STATE, AND LOCAL LAWS THAT REGULATE THE USE
OF SUCH FUNDS.
WHEREAS, on April 12, 2018, pursuant to Resolution No.18-0138, the City Commission
approved an allocation of $968,204.00 in Community Development Block Grant ("CDBG") funds
for economic development activities, which included an amount of $858,204.00 that has yet to
be allocated to direct activities, to the Office of Capital Improvements ("OCI") Program for Street
and Park improvements; and
WHEREAS, the amount of $858,204.00 represents the economic development funds
earmarked for Districts 3 and 5 that are required to be allocated and spent so the City of Miami
("City") can meet its CDBG timeliness test on August 1, 2018; and
WHEREAS, on May 10, 2018, pursuant to Resolution No.18-0184, the City Commission
approved the de -obligation of $98,977.57 from various prior year activities; and
WHEREAS, since September 8, 2016, the City has allocated $1,246,984.51 in CDBG
Program Income to eligible CDBG housing and economic development activities, of which an
City of Miami Page 1 of 2 File ID: 3958 (Revision: A) Printed On: 6/12/2023
File ID: 3958 Enactment Number: R-18-0177
amount of $670,578.00 has been allocated, which leaves an unallocated balance of
$576,406.41; and
WHEREAS, the Liberty City Community needs additional community space for
community events and the restoration of a marquee Liberty City historic theatre; and
WHEREAS, the City Administration recommends the allocation of CDBG funds to the
Department of Real Estate and Asset Management ("DREAM") in the amount of $1,530,000.00
for the purchase of Carver Theater located at 6016 Northwest 7th Avenue, Miami, Florida
("Theater"), for community activities;
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 allocation of CDBG funds in the amount of $1,530,000.00 from 2017-
2018 unallocated CDBG funds, de -obligated funds from prior years activities, and unallocated
program income to DREAM for the purchase of the Theater for community activities, is
authorized.'
Section 2. The City Manager is authorized' to execute a Purchase and Sale Agreement
("Agreement"), in substantially the attached form, between the City, as purchaser, and Gator
Carver Theater LLC ("Gator"), as seller, for the acquisition of said Theater, allocating the funds
described in Section 2 to cover the cost of said acquisition, inclusive of the cost of a survey,
environmental report, title insurance, securing the property, and related closing costs associated
with said acquisition, in accordance with the terms and conditions of the Agreement
Section 3. The City Manager is further authorized' to negotiate and execute any
and all other documents, in a form acceptable to the City Attorney, including amendments,
renewals, extensions, and modifications, as may be necessary for said purpose, subject to
all federal, state, and local laws that regulate the use of such funds.
Section 4. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.2
APPROVED AS TO FORM AND CORRECTNESS:
ndez, City 'ttar ey 6/4/2018
1 The herein authorization is 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.
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.
City of Miami Page 2 of 2 File ID: 3958 (Revision: A) Printed on: 6/12/2023
City of Miami
Resolution R-19-0249
Legislation
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 5945 Final Action Date: 6/27/2019
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 ("CITY CHARTER"), AUTHORIZING THE
CITY MANAGER TO TRANSFER, WITH ELIGIBLE COMMUNITY
DEVELOPMENT BLOCK GRANT ("CDBG") PROGRAM ACTIVITY
RESTRICTIONS AND AUTOMATIC REVERTER PROVISIONS, THE CITY OF
MIAMI OWNED PARCEL OF LAND AND ALL IMPROVEMENTS THEREON
LOCATED AT 6016 NORTHWEST 7TH AVENUE, MIAMI, FLORIDA, AS MORE
PARTICULARLY DESCRIBED IN ATTACHMENT "A," ATTACHED AND
INCORPORATED, ALSO KNOWN AS THE CARVER THEATER ("PARCEL"),
TO MARTIN LUTHER KING ECONOMIC DEVELOPMENT CORPORATION, A
FLORIDA NOT FOR PROFIT CORPORATION ("DEVELOPER"), FOR THE
REDEVELOPMENT OF THE PARCEL FOR HOUSING, SUBJECT TO CDBG
PROGRAM RESTRICTIONS AND/OR OTHER ELIGIBLE CDBG ACTIVITIES;
FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE AN AGREEMENT AND ANY AND ALL OTHER NECESSARY
DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO
TRANSFER THE PARCEL TO THE DEVELOPER.
SPONSOR(S): Commissioner Keon Hardemon
WHEREAS, on May 10, 2018, pursuant to Resolution No. 18-0177, the City Commission
authorized, by extraordinary vote, the purchase of the Carver Theater located at 6016
Northwest 7th Avenue, Miami, Florida, as legally described in Attachment "A," attached and
incorporated ("Parcel"), in the amount of $1,530,000.00 in Community Development Block Grant
("CDBG") funds ("Funds") for community activities; and
WHEREAS, the City Commission now wishes to consider a proposed redevelopment of
the Parcel which will provide housing, subject to CDBG program restrictions and/or other eligible
CDBG activities for low to moderate income persons; and
WHEREAS, the City of Miami ("City") Administration recommends transferring with
CDBG activity restrictions and automatic reverter provisions the City -owned Parcel to the
Developer in "as is" and "where is" condition; and
WHEREAS, because the City acquired the Parcel with CDBG Funds, the Developer and
the City must comply with all federal regulations that regulate the use of such Funds; and
WHEREAS, the CDBG activity restrictions and automatic reverter provisions contained
in the conveying instruments shall require the Parcel to automatically revert to the City if (i) the
Parcel is used for any non-CDBG eligible activity and/or (ii) the Parcel is encumbered or
transferred without the approval of the City; and
City of Miami Page 1 of 2 File ID: 5945 (Revision:) Printed On: 6/12/2023
File ID: 5945 Enactment Number: R-19-0249
WHEREAS, the Parcel shall be redeveloped as housing, subject to CDBG program
restrictions and/or for an eligible CDBG activity serving low to moderate income residents in
accordance with Section 29-B(a) of the Charter of the City of Miami, Florida, as amended ("City
Charter"); and
WHEREAS, Section 29-B(a) of the City Charter states that competitive bidding shall not
apply to properties that are conveyed to implement housing programs or 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 convey 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 will be subject
to the approval of the Director; and (iii) the closing of the Parcel occurs simultaneously with the
closing of the construction financing by the lender(s), if any; and
WHEREAS, the Parcel shall be conveyed through an agreement ("Agreement") and any
and all other necessary documents, all in form(s) acceptable to the City Attorney;
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 transfer, with CDBG program restrictions and automatic reverter provisions, the
City -owned Parcel to the Developer for the redevelopment of the Parcel for housing, subject to
CDBG program restrictions and/or for other eligible CDBG activities.
Section 3. The City Manager is further authorized to negotiate and execute an
Agreement and any and all other necessary documents, all in a form acceptable to the City
Attorney, to transfer the Parcel to the Developer.
Section 4. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.2
APPROVED AS TO FORM AND CORRECTNESS:
Barnaby L. Min, Deputy City Attorney 6/18/2019
1 The herein authorization is 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.
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.
City of Miami Page 2 of 2 File ID: 5945 (Revision:) Printed on: 6/12/2023
PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT ("Agreement") is made and entered into
this day of , 2023, by and between the CITY OF MIAMI, a
municipal corporation of the State of Florida, with offices at 444 SW 2 Avenue, Miami, Florida
33130 (the "Seller" or "City"), and MARTIN LUTHER KING ECONOMIC
DEVELOPMENT CORPORATION, a Florida not for profit corporation, with offices at
6114 Northwest 7 Avenue Miami, Florida 33127 (the "Purchaser"). (The Seller and the Purchaser
are hereinafter jointly referred to as the "Parties" and individually may be referred to as a "Party")
Recitals
A. The Seller agrees to convey the property located at 6016 Northwest 7 Avenue, Miami, FL
33127, as more particularly herein described ("Property"), to the Purchaser pursuant to Resolution
No. 23- (a copy of which is attached hereto and incorporated herein as Attachment 1), duly
adopted by the Miami City Commission on , 2023, in accordance with Section 29-B(a)
of the Charter of the City of Miami, Florida, as amended ("City Charter"), for the purpose of
constructing affordable rental housing, and a performing arts center in substantial compliance with
the Authorized Proposal, attached hereto and incorporated herein as Exhibit "A" ("Authorized
Proposal"), on the Property, as described herein (collectively, "Project" or "Improvements").
B. Accordingly, Seller agrees to sell the Property to Purchaser in reliance on Purchaser's
covenant that Purchaser will: (i) within twenty-five (25) months following the Effective Date, as
defined herein, commence the construction of the Project, as described herein, as evidenced by
issuance of the required building permits from the City of Miami's Building Depaituient, (ii)
construct the Project in substantial compliance with the Authorized Proposal, this Agreement,
and the City of Miami's building requirements (iii) continue diligently with the construction of
the Project, including but not limited to the construction of the Improvements on the Property, to
completion, as evidenced by the issuance of a Certificate of Occupancy, Certificate of
Completion, or Temporary Certificate of Use (as applicable) from the City of Miami's Building
Department, by no later than forty-eight (48) months from the date of Closing, and (iv) for the
avoidance of doubt, complete the Project's construction, which will result in one (1) building
erected on the Property, which shall include a minimum of forty (40) affordable one-
bedroom/one-bathroom residential rental units, that must be occupied by 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")("Eligible Residents" or "Low Income Persons") for a period of no less than thirty (30)
years from the date that all forty (40) one -bedroom residential rental units are fully leased to and
occupied by Eligible Residents ("Affordability Period"), in accordance with Section 29-B of the
City Charter and as stated in Attachment 1, attached hereto and incorporated herein by this
reference, all in accordance with the restrictions, terms, and covenants set forth herein.
C. The Purchaser desires to acquire the Property from the Seller in accordance with the terms
and conditions of this Agreement.
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Now, therefore, the Parties hereto hereby agree that the Seller shall sell and the Purchaser
shall purchase the following properties, hereinafter collectively referred to as the "Property," upon
the following terms and conditions:
1. LEGAL DESCRIPTION OF THE PROPERTY
6016 NW 7 AVE 33127
Lots 1, 2, 3, and 4, Block 2, Bayami Park, according to the Plat thereof, as
recorded in Plat Book 13, at Page 68, of the Public Records of Miami -Dade
County, Florida.
Property Folio No. 01-3114-037-0140
2. PURCHASE PRICE AND PAYMENT
The Purchaser agrees to pay and the Seller agrees to accept for the Property the sum of One
Thousand and 00/100 Dollars ($1,000.00) (the "Purchase Price"). At Closing, the Purchase
Price (increased or decreased by adjustments, credits, prorations, and expenses as set forth
in the provisions of this Agreement) shall be paid by the Purchaser to the Seller in the form
of cashier's check, certified check, official bank check, or wire transfer.
3. ENVIRONMENTAL MATTERS
A. Definitions.
For purposes of this Agreement: The term "Hazardous Materials" shall mean and include
without limitation, any substance, which is or contains (A) any "hazardous substance" as
now or hereafter defined in the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended (42 U.S.C., Section 9601 et seq.) ("CERCLA") or
any regulations promulgated under or pursuant to CERCLA; (B) any "hazardous waste" as
now or hereafter defined in the Resource Conservation and Recovery Act (42 U.S.C.,
Section 6901 et seq.); (C) any substance regulated by the Toxic Substances Control Act
(15 U.S.C., Section 2601 et. Seq.); (D) gasoline, diesel fuel, or other petroleum
hydrocarbons; (E) asbestos and asbestos containing materials, in any form, whether friable
or non -friable; (F) polychlorinated biphenyls; and (G) any additional substances or material
which: (i) is now or hereafter classified or considered to be hazardous or toxic under
Environmental Requirements as hereinafter defined; (ii) causes or threatens to cause a
nuisance on the Property or adjacent property or poses or threatens to pose a hazard to the
health or safety of persons on the Property or adjacent property; or (iii) would constitute a
trespass if it emanated or migrated from the Property.
The term "Environmental Requirements" shall mean all laws, ordinances, statutes, codes,
rules, regulations, agreements, judgments, orders and decrees, now or hereafter enacted,
promulgated, or amended of the United States, the states, the counties, the cities, or any
other political subdivision, agency or instrumentality exercising jurisdiction over Seller or
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Purchaser, the Property, or the use of the Property, relating to pollution, the protection or
regulation of human health, natural resources, or the environment, or the emission,
discharge, release or threatened release of pollutants, contaminants, chemicals, or
industrial, toxic or hazardous substances or waste or Hazardous Materials into the
environment (including, without limitation, ambient air, surface water, groundwater, land
or soil).
B. Disclaimer as to Environmental Matters.
The Property is being sold in "AS IS" condition. Purchaser acknowledges and agrees that
Seller has not made, does not make and specifically negates and disclaims any
representations, warranties, promises, covenants, agreements or guaranties of any kind or
character whatsoever, whether express or implied, oral or written, (past, present, or future)
of, as to, concerning or with respect to environmental matters with reference to the
Property, including, but not limited to: (a) the value, nature, quality or condition of the
Property, including, without limitation, the water, minerals, soil and geology, (b) the
compliance of or by the Property or its operation with any Environmental Requirements,
(c) any representations regarding compliance with any environmental protection, pollution
or land use, zoning or development of regional impact laws, rules, regulations, orders or
requirements, including the existence in or on the Property of Hazardous Materials.
Purchaser further acknowledges and agrees that it is being given the opportunity to inspect
the Property, and all relevant documents and records of Seller as they relate to the Property,
and other documents that may exist in the public records of the state, county and/or city
relating to the environmental condition of the Property as part of this Agreement and that
Purchaser is not relying upon any documents or representations made by or on behalf of
Seller, but that Purchaser is responsible to conduct its own investigation(s) of the Property.
Purchaser further acknowledges and agrees that any information provided or to be provided
by Seller with respect to the Property was obtained from a variety of sources, and that
Seller has not made an independent investigation or verification of such information and
makes no representations as to the accuracy or completeness of such information. Seller
is not liable or bound in any regard by any verbal or written statements, representations or
information pertaining to the Property, or the operation thereof, furnished by any agent,
employee, servant or other person.
C. Environmental Inspection.
Purchaser, its employees, agents, consultants and contractors shall have a period of ninety
(90) calendar days from the Effective Date (the "Environmental Inspection Period") in
which to undertake at Purchaser's expense, such physical inspections and other
investigations of and concerning the Property including surveys, soil borings, percolation,
engineering studies ("Engineering Studies"), environmental tests and studies and other
tests as Purchaser considers necessary for Purchaser and its consultants to review and
evaluate the physical characteristics of the Property (the "Environmental Inspection") after
giving the Seller reasonable notice of twenty-four (24) hours prior to each test performed.
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Purchaser agrees to bear any and all cost and expense associated with producing the
Environmental Inspection.
The Seller, at its sole option, may extend the Environmental Inspection Period for an
additional twenty-five (25) calendar days if based upon the results of the testing, additional
testing is warranted. For the purpose of conducting the Environmental Inspection, Seller
hereby grants to Purchaser and its consultants and agents, full right of entry upon the
Property during the Environmental Inspection Period through the Closing Date, as set forth
herein. The right of access herein granted shall be exercised and used by Purchaser, its
employees, agents, representatives and contractors in such a manner as not to cause any
material damage or destruction of any nature whatsoever to the Property and any
improvements thereon, or interruption of the use of the Property by the Seller, its
employees, officers, agents and tenants.
D. Inspection Indemnity, Insurance and Releases.
Notwithstanding anything contained in this Agreement to the contrary, as consideration for
the Purchase Price for the Property, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and for the Seller granting a
continuing right of entry, the Purchaser hereby specifically agrees to: (i) immediately pay
or cause to be removed any liens or encumbrances filed against the Property as a result of
any actions taken by or on behalf of Purchaser in connection with the inspection of the
Property; (ii) immediately repair and restore the Property to its condition existing
immediately prior to the Environmental Inspection; and (iii) indemnify, defend and hold
harmless Seller, its employees, officers and agents, from and against all claims, damages
and losses incurred to the Property, and anyone on the Property as a result of the actions
taken by the Purchaser, its employees, agents, representatives and contractors, and anyone
directly or indirectly employed by any of them or anyone for whose acts they may be liable
regardless of whether or not such claim, demand, cause of action, damage, liability, loss or
expense is caused in part by Seller, its employees, officers and agents, provided, however,
Purchaser shall not be liable for the gross negligence or intentional misconduct of Seller,
its employees, officers and agents. Nothing herein shall be deemed to abridge the rights,
if any, of the Seller to seek contribution where appropriate.
The provisions of this indemnification shall survive the Closing and the termination of this
Agreement.
Prior to Purchaser entering upon the Property for purposes of commencement of the
Environmental Inspection, Purchaser shall furnish to Seller the policy or policies of
insurance and/or certificates of insurance in form and such reasonable amounts approved
by the City of Miami's Risk Management Department, attached hereto and incorporated
herein as Attachment 3, protecting the Seller, during the course of such testing, against all
claims for personal injury and property damage arising out of or related to the activities
undertaken by the Purchaser, its agents, employees, consultants and contractors, and/or
anyone directly or indirectly employed by any of them and/or anyone for whose acts they
may be liable, upon the Property or in connection with the Environmental Inspection.
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Purchaser hereby voluntarily, intentionally and knowingly waives any and all claims
against the Seller for personal injury or property damage sustained by the Purchaser, its
employees, agents, contractors, and consultants arising out of or related to the activities
undertaken by the Purchaser, its agents, employees, consultants and contractors upon the
Property or in connection with the Environmental Inspection and releases the Seller and its
employees, officers and agents from any claims in connection therewith.
E. Remedies/Right of Termination.
If Purchaser discovers, during the Environmental Inspection Period, the presence of
Hazardous Materials on the Property in levels or concentrations which exceed the standards
set forth by the Miami Dade County Department of Environmental Resources Management
("DERM"), the State of Florida Department of Environmental Protection, the United States
Environmental Protection Agency, or the Environmental Requirements, as defined herein,
by any other federal, state or local regulatory body with jurisdiction for environmental
matters prior to the end of the Environmental Inspection Period, Purchaser shall notify
Seller in writing and deliver to Seller copies of all written reports concerning such
Hazardous Materials (the "Environmental Notice"). The Purchaser and Seller shall have
seven (7) business days from the date the Seller receives the Environmental Notice to
negotiate a mutually agreeable remediation protocol. In the event the Purchaser and Seller
are unable to reach agreement with respect thereto within the seven (7) business day period
provided herein, the Parties shall have the option within two (2) calendar days of the
expiration of the seven (7) business day period to cancel this Agreement by written notice
to the other Party whereupon (i) all property data and all studies, analysis, reports and plans
respecting the Property delivered by Seller to Purchaser or prepared by or on behalf of the
Purchaser shall be delivered by Purchaser to the Seller; and then (ii) except as otherwise
provided in this Agreement, the Parties shall thereupon be relieved of any and all further
responsibility hereunder and neither Party shall have any further obligation on behalf of
the other.
F. Waiver and Release.
In the event that Purchaser does not elect to cancel this Agreement, Purchaser
acknowledges and agrees that to the maximum extent permitted by law, the sale of the
Property as provided for herein is made on an "AS IS" condition and basis with all faults.
Purchaser on behalf of itself and its successors and assigns voluntarily, knowingly, and
intentionally waives, releases, acquits, and forever discharges Seller, its heirs, and the
successors and assigns of any of the preceding, of and from any and all claims, actions,
causes of action, demands, rights, damages, costs, expenses or compensation whatsoever,
direct or indirect, known or unknown, foreseen or unforeseen, which Purchaser or any of
its successors or assigns now has or which may arise in the future on account of or in any
way related to or in connection with any past, present, or future physical characteristic or
condition of the Property including, without limitation, any Hazardous Materials in, at, on,
under or related to the Property, or any violation or potential violation or any
Environmental Requirement applicable thereto. In addition, Purchaser thereafter
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specifically waives all current and future claims and causes of action against Seller arising
under CERCLA, RCRA, Chapters 376 and 402, Florida Statutes, and any other federal or
state law or county regulation relating to Hazardous Materials in, on, or under the Property.
Notwithstanding anything to the contrary set forth herein, this release shall survive the
Closing and termination of this Agreement.
4. TITLE EVIDENCE
Purchaser, at its sole cost and expense, shall be responsible for obtaining all title
documents, including but not limited to title policy or policies, title commitments, abstract
of title, or other evidence of title, which Purchaser requires in order to ascertain the status
of title. Purchaser agrees to forward a copy of the aforementioned title documents to Seller
immediately upon Purchaser's receipt thereof. Purchaser shall be responsible for obtaining,
at its sole cost, (i) a commitment for title insurance, from a recognized title insurance
company authorized to issue title insurance in the State of Florida, agreeing to insure
Purchaser's title, free of all exceptions, except those that may be accepted by Purchaser,
together with all corresponding title documents, and (ii) a survey of the Property showing
the Property to be free of encroachments or conditions that would affect its proposed use
of the Property.
In the event the Purchaser's examination of title, which examination shall include, without
limitation, Purchaser's examination of a survey to be ordered at Purchaser's sole cost and
expense and shall be completed within thirty (30) calendar days of the Effective Date,
reflects any condition which renders the title unmarketable, in accordance with the
standards of the Florida Bar, or otherwise makes it impractical for the Purchaser to develop
the Improvements, as defined herein (the "Title Defect"), the Purchaser shall allow the
Seller thirty (30) calendar days within which to use reasonable diligence to cure the Title
Defect. Seller shall use good faith efforts to cure any Title Defect, provided however,
Seller shall not be required to bring any action or to incur any expense to cure any Title
Defect or objection.
If Seller shall be unable to convey title to the Property according to provisions of this
Agreement, Purchaser may: (i) elect to accept such title that Seller may be able to convey,
with no reduction in Purchase Price; or (ii) terminate this Agreement, upon such
termination, this Agreement shall be null and void and the Parties shall be relieved of all
further obligation and liability, and neither Party shall have any further claims against the
other, except as to Purchaser's liability, if any, arising out the Inspection Indemnity
pursuant to Section 3 hereof, arising out the indemnification pursuant to Section 15 hereof,
and arising out the indemnification pursuant to Section 31(v) hereof. In such event, the
Purchaser shall notify the Seller in writing of the cancellation of this Agreement,
whereupon all abstracts of title, property data, and all studies, analysis, reports and plans
respecting the Property delivered by the Seller to the Purchaser or prepared by or on behalf
of the Purchaser shall be delivered by the Purchaser to the Seller.
In the event that the Purchaser does not elect to cancel this Agreement as permitted
hereby, the Purchaser acknowledges and agrees that the sale of the Property as provided
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for herein shall be made on an "AS IS" condition and basis without any representations
and warranties made by Seller.
5. DISCLAIMER OF WARRANTIES AS TO PROPERTY;
"AS IS" CONVEYANCE.
A. The Purchaser acknowledges and agrees that the Purchaser is purchasing
the Property in an "AS IS" condition and specifically and expressly without any warranties,
representations or guaranties, either express or implied, of any kind, nature, or type
whatsoever from or on behalf of the Seller. Without in any way limiting the generality of
the immediately preceding sentence, and in addition to the specific disclaimers set forth in
Section 3 of this Agreement with respect to Environmental Matters, the Purchaser and the
Seller further acknowledge and agree that in entering into this Agreement and purchasing
the Property:
(1) Purchaser hereby acknowledges that Seller has not made, will not make and
does not make any warranties or representations, whether express or implied, with respect
to the Property, its condition, the value, profitability, or marketability thereof;
(2) Purchaser acknowledges that with respect to the Property, Seller has not
made, does not make, and will not make any warranties, whether express or implied, of
merchantability, habitability or fitness for a particular use or suitability of the Property for
any and all activities and uses which Purchaser may conduct thereon;
(3) Purchaser acknowledges that Seller has not made, will not make, and does
not make any representations, whether express or implied, with respect to compliance with
any land use, zoning or development of regional impact laws, developer impact fees or
assessments, rules, regulations, orders or requirements;
(4) Purchaser acknowledges that Purchaser has made and/or shall be given an
adequate opportunity to make such legal, factual and other inquiries and investigations as
Purchaser deems necessary, desirable or appropriate with respect to the Property, the value
or marketability thereof and of the appurtenances thereto. Such inquiries and investigations
of Purchaser shall be deemed to include, but shall not be limited to, the condition of all
portions of the Property and such state of facts as an accurate abstract of title would show;
(5) Purchaser acknowledges that Purchaser has not relied, and is not relying,
upon any information, document, projection, proforma, statement, representation, guaranty
or warranty (whether express or implied, or oral or written or material or immaterial) that
may have been given by or made by or on behalf of Seller;
(6) The Purchaser acknowledges that, as to any personalty on the Property, the
Seller has not made, will not make and does not make, any warranties or representations,
whether express or implied, and specifically disclaims any WARRANTY OF
MERCHANTABILITY. As to personal property, if any, it shall be conveyed to the Seller
on an "AS IS" condition and basis with all faults
B. The provisions of this Section 5 shall survive the Closing.
6. RESTRICTIONS, EASEMENTS AND LINIITATIONS
The Purchaser further agrees it shall take title subject to: zoning, restrictions, prohibitions,
and other requirements imposed by governmental authority; restrictions and matters
appearing on the public records, including, but not limited to, deed restrictions and
reversionary interests, and all recorded and unrecorded easements and any matters that
would be disclosed on a survey of the Property.
7. CONDITIONS PRECEDENT
(i) Seller's obligation to sell and Purchaser's obligation to purchase shall be subject to the
satisfaction of the following conditions on or before thirty (30) calendar days prior to
Closing:
a. The Purchaser shall submit evidence, satisfactory to the Seller's Director of
Housing and Community Development Depaitiuent, of the necessary
financial commitments to construct the Improvements from all other
lenders.
b. The Purchaser shall submit to the Seller a copy of the construction contract
for the construction of the Improvements.
c. The Purchaser shall submit to the Seller evidence that it is ready to
commence and complete construction of the Improvements within the times
and in compliance with the requirements set forth in Attachment 2, attached
hereto and incorporated herein.
8. DEED RESTRICTIONS
The Seller shall convey title to the Property by City Deed (which shall be a quit claim deed
containing an automatic reverter provision, henceforth known as the "Deed"), subject to
certain deed restrictions pertaining to the use of the Property imposed in accordance with
applicable requirements, if any, of the City Charter and Code, the City Commission, the
funding source for the City's acquisition of the Property and the following agreements
between the Purchaser and the Seller:
i) The Property being conveyed to the Purchaser for the development of at least forty (40)
residential rental units at 6016 Northwest 7 Ave 33127 affordable Units to be occupied
by eligible Low Income Persons, whose annual income is at or below eighty percent
(80%) of AMI as published annually by HUD, must remain affordable rental housing
for eligible Low Income Persons, in compliance with the terms and restrictions in
Attachment 2, attached hereto and incorporated herein, throughout the duration of the
Affordability Period.
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ii) Any mortgages or other encumbrances obtained by Purchaser on the Property, during
the Affordability Period, inclusive of qualified end -buyer acquisition mortgages, will
be subject to the prior written approval of the Seller's Director of Housing and
Community Development.
iii) Purchaser must complete construction of the Improvements in accordance with the
benchmarks in Attachment 2.
iv) Notwithstanding any other provisions in this Agreement, Purchaser may not transfer or
attempt to transfer the Property or any interest therein without Seller's prior written
authorization, except for the sale of units to qualified end -buyers.
v) Notwithstanding anything in this Agreement to the contrary, the parties agree that the
Deed Restrictions shall be those identified in Attachment "2," attached hereto and
incorporated herein by this reference.
9. CLOSING DATE
Closing shall take place no later than 25 months from the Effective Date, at a mutually
agreeable time (the "Closing" or "Closing Date") at the City of Miami, Department of City
Attorney's Office at 444 SW 2 Avenue, 9th Floor, Miami, Florida. The Parties may, subject
to mutual agreement, establish an earlier date and location for Closing. Purchaser has the
right to extend Closing for sixty (60) calendar days once. Purchaser may extend Closing
for two (2) additional sixty (60) calendar day periods with expressed written consent from
Seller. Seller's consent shall not be unreasonably withheld. The Parties acknowledge and
agree that Purchaser will be applying for construction financing from one or more public
or private lenders (the "Financing"). Purchaser's right and obligation to acquire the
Property hereunder is subject to it successfully obtaining such Financing. In the event that
Purchaser does not secure such Financing, either Party may terminate this Agreement, and
this Agreement shall be null and void and the Parties hereto shall be relieved of all further
obligation and liability, and neither Party shall have any further claims against the other,
except as to Purchaser's liability, if any, arising out the Inspection Indemnity pursuant to
Section 3 hereof, arising out the indemnification pursuant to Section 15 hereof, and arising
out the indemnification pursuant to Section 31(v) hereof. At such time as Purchaser obtains
the same it will notify the Seller of its intention to acquire the Property, provided, however,
that the Closing of the sale of the Property shall take place in compliance with the terms of
this Agreement.
10. COVENANTS
A. The Purchaser represents and warrants to the Seller that no demolition whatsoever
shall occur on the Property until after Closing.
B. The Purchaser represents and warrants to the Seller that, throughout the duration
of the Affordability Period, the Property will be used to provide affordable housing for
Low Income Persons based on criteria established by the Seller. The Seller has relied on
the Purchaser's representations in entering into this Agreement pursuant to the provisions
of Section 29-B of the Charter of the City of Miami, which exempts from the competitive
bidding requirements established therein "conveying property to implement housing
programs or projects which are intended to benefit Low Income Persons, the criteria of
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which to be provided for by federal and/or state law, the City of Miami's Depailment of
Housing and Community Development, and/or by the City commission." The Purchaser's
representations and warranties contained in this Section 10 shall constitute a covenant
running with the land, which touches, covenants, and concerns the land and will bind the
Purchaser and its authorized assigns and heirs throughout the Affordability Period. The
Purchaser's representations and warranties contained in this Section 10 shall be
enforceable by the Seller as a covenant running with the land, which shall also be
recorded in a separate document at Closing.
The Purchaser represents and warrants to the Seller that the Property will be developed
for the benefit of Low Income Persons as set forth herein. The Purchaser further agrees to
construct at least forty (40) one-bedroom/one-bathroom rental apartments that are to be
occupied by persons earning the area median incomes set forth in Attachment 2, attached
hereto and incorporated herein (the "Affordable Units" or "Units") on the Property.
Further, Purchaser acknowledges, covenants, and agrees that the Project shall include and
a performing arts center in substantial compliance with the Authorized Proposal. For the
avoidance of doubt, the Purchaser agrees that the theater on the Property will be fully
renovated to completion, as evidenced by the issuance of a Certificate of Occupancy,
Certificate of Completion, or Temporary Certificate of Use (as applicable) from the City
of Miami's Building Depai intent, by no later than forty-eight (48) months from the date
of Closing. Upon the conveyance of the Property to the Purchaser, the Purchaser shall
continue diligently with the construction of the Improvements to completion.
Purchaser agrees to make reasonable and best efforts to secure additional financing to
provide additional affordable housing units in addition to the minimum forty (40)
affordable rental units the Purchaser has agreed to construct.
The Purchaser shall make best efforts to secure appropriate and adequate financing to
construct the performing arts center in substantial compliance with the Authorized
Proposal. If the Purchaser and Seller agree in writing that appropriate and adequate
financing is unavailable for the construction of the performing arts center in substantial
compliance with the Authorized Proposal, then the Purchaser and Seller may agree in
writing to substitute the construction of the performing arts center with other CDBG
eligible project activities.
C. The Purchaser agrees that concurrently with the conveyance of the Property, at
Closing, the Purchaser shall furnish a covenant which will run with the land and shall be
binding on the Purchaser, its successors, heirs and assignees, in favor of the Seller and
enforceable by Seller, to be recorded in the public records of Miami -Dade County.
D. The Purchaser's representations and warranties contained in this Section 10 shall be
embodied in a restrictive covenant recorded in the Public Records of Miami -Dade
County.
E. The provisions of this Section 10 shall survive the Closing.
11. CLOSING DOCUMENTS
A) At Closing, Seller shall execute and/or deliver to Purchaser the following:
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(1)
The Deed subject to conditions, restrictions, easements and limitations of
record, any conditions and/or restrictions imposed by the City Commission
and/or the funding source for the acquisition of the Property, and such other
conditions as are described in this Agreement;
(2) A Closing Statement;
(3) A Seller's Title Affidavit sufficient to delete the title standards in
Purchaser's title policy and a Non -Foreign Affidavit, as applicable;
(4) Such documents as are necessary to fully authorize the sale of the Property
by Seller and the execution of all closing documents; and
(5) Any other documents reasonably necessary or advisable to consummate the
transaction contemplated hereby.
B) At Closing, Purchaser shall execute and/or deliver to Seller the following:
(1) Closing Statement;
(2) Such documents as are necessary to fully authorize the purchase of the
Property by Purchaser and the execution of all closing documents;
(3)
Any other documents required by the Seller that are reasonably necessary
or advisable to consummate the transaction contemplated hereby; and
(4) Purchaser shall pay to Seller the balance of the Purchase Price as provided
for in Section 2 hereof.
(5)
Any documents and/or information, including financial information and
proof of construction financing, requested by the Seller pertaining to the
development of the proposed Project
(6) All documents required by the City Commission Resolution attached as
Attachment 1, attached hereto and incorporated herein, and by Attachment
2, attached hereto and incorporated herein.
(7)
A Declaration of Restrictive Covenants in a form acceptable to Seller.
12. CLOSING COSTS AND ADJUSTMENTS
At Closing, the following items shall be borne, adjusted, prorated and/or assumed by and
between Seller and Purchaser as follows:
A. Adjustments and Prorations
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1) Real Estate Taxes: All ad valorem taxes shall be pro -rated through the
Closing Date based on the most current tax bill. The Seller shall be
responsible for all taxes prior to the Closing Date and Purchaser shall be
responsible for all pro -rated taxes subsequent to the Closing Date.
2) Certified/Pending Liens: Certified, confirmed, and ratified governmental
liens, and any and all pending liens, as of the Closing Date shall be
paid/assumed by the Purchaser. Notwithstanding the foregoing, to the
extent permitted by Section 2-817(h) of the City Code, the Seller agrees to
release, or cause to be released, any liens created or imposed by the Seller
that are currently encumbering the Property.
3) Other Taxes, Expenses, Interest, Etc.: Taxes, assessments, water and sewer
charges, waste fee and fire protection charges, if applicable, shall be paid
by the Purchaser.
4) Usual and Customary: Such other items that are usually and customarily
pro -rated between purchasers and sellers of properties in Miami -Dade
County as of the Closing Date shall be paid by the Purchaser.
B. Closing Costs
(1) Each Party shall be responsible for its own attorney's fees incurred in
connection with the Closing.
(2) Purchaser shall pay all other Closing and recording costs incurred in
connection with the sale and purchase of the Property described in this
Agreement, including, but not limited to:
13. DEFAULT
(i) all inspection and environmental testing costs;
(ii) documentary stamps and surtax on the deed;
(iii) all recording charges, filing fees payable in connection with the
transfer of the Property hereunder;
(iv) the Seller's costs incurred in connection with the public solicitation
process related to the sale of the Property, which costs shall not
exceed five thousand dollars ($5,000);
(v) any Project fees, including, but not limited to, signage fees,
advertising costs and fees for Property security.
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A) If this transaction does not close as a result of default by Seller, Purchaser as and
for its sole and exclusive remedies shall be entitled to: (i) elect to terminate this
Agreement; or (ii) elect to waive any such conditions or defaults and to consummate
the transactions contemplated by this Agreement in the same manner as if there had
been no conditions or defaults and without any reduction in the Purchase Price and
without any further claim against Seller.
However, notwithstanding anything contained herein to the contrary, in no event
shall Seller be liable to Purchaser for any actual, punitive, incidental, speculative
or consequential damages, costs or fees of any nature whatsoever. The limitation
on Seller's liability set forth herein shall survive Closing.
B) Neither Party shall be entitled to exercise any remedy for a default by the other
Party until (i) such Party has delivered to the other notice of the default, and, (ii) a
period of ten (10) calendar days from and after delivery of such notice has expired
with the other Party having failed to cure the default or diligently pursued remedy
of the default. Upon such failure of the Purchaser, this Agreement shall
automatically and immediately terminate.
14. RISK OF LOSS
The Purchaser assumes all risk of loss or damage to the Property by fire or other casualty,
or acts of God, as of the Effective Date.
15. RELEASE AND INDEMNIFICATION
Purchaser and anyone claiming by, through or under Purchaser hereby fully and
irrevocably releases Seller, its employees, officers, directors, representatives, agents,
successors and assigns (collectively the "Seller") from any and all claims that it may now
have or hereafter acquire against the Seller for any cost, loss, liability, damage, expense,
demand, action or cause of action arising from or related to any defects, errors, omissions
or other conditions, including, but not limited to, environmental matters, title to the
Property, condition of the Property, personal injury or property damage arising from the
use or occupancy of the Property, or any other matter affecting the Property, or any portion
thereof. This release shall survive cancellation, Closing, and full performance of this
Agreement, as applicable.
In consideration of the Purchaser's purchase of the Property, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged by both the
Parties, the Purchaser, and its heirs, agents, representatives, successors and assigns do
hereby agree to indemnify, hold and save harmless and defend the Seller, its officials,
employees, officers, directors, representatives, agents, successors and assigns from any
claim, demand or liability for commissions, alleged statutory or regulatory violations,
breaches of contract or any other claim, demand or litigation arising from and relating to
this Agreement, inclusive of court costs, principal and interest made on behalf of any
broker, tenant(s), third party beneficiary(ies) or other persons or entities. This
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indemnification shall survive cancellation, Closing, and full performance of this
Agreement, as applicable.
16. DESIGNATION OF REPRESENTATIVES
Purchaser and Seller acknowledge that proper communication between Purchaser and
Seller, and between Purchaser and any governmental authorities having jurisdiction over
environmental matters, is to be an important component of the Purchaser's Environmental
Inspection Period and title examination. Accordingly, to facilitate such communication,
the Purchaser and Seller have appointed the following persons on their respective behalf to
be their environmental and title representatives, to wit:
On behalf of Seller: On behalf of Purchaser:
City of Miami
Department of Housing and
Community Development
Attn: George Mensah, Director
14 NE 1st Ave, Second Floor
Miami, FL 33132
Telephone No.: (305) 416-1978
17. NOTICES
Martin Luther King Economic Development
Corporation
6114 NW 7th Avenue
Miami, FL 33127
Attn: Amina M. McNeil, Esq.
Telephone No.: (305)757-7652
All notices or other communications, which may be given pursuant to this Agreement shall
be in writing and shall be deemed properly served if delivered by personal service or by
certified mail addressed to Seller and Purchaser at the address indicated herein. Such notice
shall be deemed given on the day on which personally served; or if by certified mail, on
the fifth day after being posted or the date of actual receipt, whichever is earlier:
Seller: Purchaser:
Arthur Noriega V, City Manager
City of Miami
444 SW 2 Avenue, loth Floor
Miami, FL 33130
Copies To:
City of Miami
Depailuient of Housing and
Community Development
George Mensah, Director
14 NE 1st Ave, Second Floor
Miami, FL 33132
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Amina M. McNeil, Esq.
Martin Luther King Economic Development
Corporation
6114 NW 7th Avenue
Miami, FL 33127
Copies To:
Billy Hardemon
Martin Luther King Economic Development
Corporation
6114 NW 7th Avenue
Miami, FL 33127
and to:
Victoria Mendez
City Attorney
444 SW 2 Avenue, Suite 945
Miami, FL 33130
18. CAPTIONS AND HEADINGS
and to:
Kenneth Naylor
Atlantic Pacific Communities, LLC
161 NW 6th Street, Suite 1020
Miami, FL 33136
The Section headings or captions appearing in this Agreement are for convenience only,
are not part of this Agreement, and are not to be considered in interpreting this Agreement.
19. BINDING EFFECT
This Agreement shall bind and inure to the benefit of the Parties hereto and their successors
in interest. Purchaser may assign or pledge this Agreement, or convey any parcel under
this Agreement, only with the prior written consent of the City Manager whose consent
may be withheld for any or no reason whatsoever. Notwithstanding the foregoing or
anything else herein to the contrary, Seller agrees that Purchaser may assign its interest in
this Agreement to Carver Theater, Ltd., a Florida limited partnership, the majority general
partnership interest of which is owned by an affiliate of Purchaser. Prior to Closing, Carver
Theater, Ltd. shall have the right to assign its interest under the Agreement back to
Purchaser or a wholly owned subsidiary of Purchaser, whereupon Purchaser (or such
affiliate) shall enter into a 99-year ground lease with Carver Theater, Ltd. to develop and
operate the Property in accordance with the requirements of this Agreement.
20. GOVERNING LAW
This Agreement shall be governed according to the laws of the State of Florida and venue
shall be in Miami -Dade County, Florida.
21. COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which so executed
shall be deemed to be an original, and such counterparts shall together constitute but one
and the same Agreement. The Parties shall be entitled to sign and transmit an electronic
signature of this Agreement (whether by facsimile, PDF or other email transmission),
which signature shall be binding on the Party whose name is contained therein. Any Party
providing an electronic signature agrees to promptly execute and deliver to the other Parties
an original signed Agreement upon request.
22. ATTORNEY'S COSTS
15
In the event litigation, arbitration, or mediation, between the Parties hereto, arises out of
the terms of this Agreement, each Party shall be responsible for its own attorney's fees,
costs, charges, and expenses through the conclusion of all appellate proceedings, and
including any final settlement or judgment.
23. WAIVERS
No waiver by either Party of any failure or refusal to comply with its obligations shall be
deemed a waiver of any other or subsequent failure or refusal to comply. All remedies,
rights, undertaking, obligations and agreement contained herein shall be cumulative and
not mutually exclusive.
24. WAIVER OF TRIAL BY JURY; VENUE
The Parties hereby knowingly, voluntarily, intentionally, and irrevocably waive any right
they may have to a trial by jury and/or to claim attorneys' fees from the other Party in
respect to any litigation arising out of, under or in connection with this Agreement, or any
course of conduct, course of dealing, statements (whether oral or written) or actions in
connection with the transactions contemplated hereby. This provision is a material
inducement for the Purchaser and the Seller entering into this Agreement. Venue in any
litigation shall be in Miami -Dade County, Florida.
25. ENTIRE AGREEMENT
This Agreement contains the entire agreement between the Parties. There are no
promises, agreements, undertakings, warranties or representations, oral or written,
express or implied, between the Parties other than as herein set forth. No amendment or
modification of this Agreement shall be valid unless the same is in writing and signed by
the City Manager on behalf of the Seller, and by the Purchaser. The recitals set forth in
this Agreement are, by this reference, incorporated into and deemed a part of this
Agreement.
26. TIME OF THE ESSENCE
Time is of the essence of this Agreement and in the performance of all conditions and
covenants to be performed or satisfied by either Party hereto. Whenever a date specified
herein shall fall on a Saturday, Sunday or legal holiday, the date shall be extended to the
next succeeding business day.
27. EFFECTIVE DATE/TIME OF ACCEPTANCE
The Effective Date of this Agreement shall be the date on which the attestation of the
City Clerk is affixed to this Agreement (the "Effective Date").
28. TERMINATION
A. Termination by the Purchaser.
16
Seller and Purchaser acknowledge and confirm that Seller has delivered to Purchaser
copies of all property data and all studies, analysis, reports and plans respecting the
Property in Seller's possession or control. Notwithstanding any provision of this
Agreement to the contrary, the Purchaser shall have the option to terminate this
Agreement for any reason not otherwise provided for in this Agreement, within ninety
(90) calendar days from the Effective Date ("Due Diligence Period"). In such event, the
Purchaser shall notify the Seller in writing of the cancellation of this Agreement,
whereupon: (i) all property data and all studies, analysis, reports and plans respecting the
Property delivered by the Seller to the Purchaser or prepared by or on behalf of the
Purchaser shall be delivered by the Purchaser to the Seller; and then (ii) except as
otherwise provided in this Agreement, the Parties hereto shall thereupon be relieved of
any and all further responsibility hereunder and neither Party shall have any further
obligation on behalf of the other.
B. Other.
(i) Notwithstanding any provision of this Agreement to the contrary, this Agreement shall
automatically and immediately terminate in the event that on or before thirty (30) days
prior to Closing, subject to extensions granted by Seller, the Purchaser has not provided
proof of all financing needed for the construction of the Improvements in the form of
commitment letters subject to credit underwriting.
(ii) Notwithstanding any provision of this Agreement to the contrary, this Agreement
shall automatically and immediately terminate in the event that on or before twenty-four
(24) months from the Effective Date, the Closing of the sale of the Property to the
Purchaser has not occurred.
(iii) In the event that the Purchaser does not pay to the Seller at the Closing the amount of
the City costs related to the Project and/or the Property, as determined by the Seller, or
comply with the material terms of this Agreement, in the Seller's reasonable discretion,
and in the event that Purchase fails to cure or commence cure of such failure as provided
in Section 13.B. hereof, then this Agreement may be terminated by the Seller upon
written notice to the Purchaser given in accordance with the notice requirements of this
Agreement upon such termination. In such an event, this Agreement shall be null and
void and the Parties shall be relieved of all further obligation and liability, and neither
Party shall have any further claims against the other, except as to Purchaser's liability, if
any, arising out the Inspection Indemnity pursuant to Section 3 hereof, arising out the
indemnification pursuant to Section 15 hereof, and arising out the indemnification
pursuant to Section 31(v) hereof.
29. PARTIAL INVALIDITY
In the event that any provision of this Agreement shall be unenforceable in whole or in
part, such provision shall be limited to the extent necessary to render the same valid, or
shall be excised from this Agreement as the circumstances require, and this Agreement
shall be construed as if said provision had been incorporated herein as so limited, or as if
said provision had not been included herein, as the case may be.
30. REQUESTED DOCUMENTS
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The Purchaser shall, within thirty (30) calendar days from the date of the Seller's written
request for the same, provide to the Seller: (i) any document(s) requested by the Seller, in
its sole but reasonable judgment, pertaining to the development of the proposed Project,
including but not limited to the financing of the construction thereof, and, (ii) any other
documents required by the Seller, in its sole but reasonable judgment, relating to the
Project, the Property and/or this Agreement.
31. MISCELLANEOUS
(i) Purchaser explicitly agrees to comply with City of Miami Ordinance No. 13491, adopted
November 20, 2014, and Ordinance No. 13645, adopted on October 27, 2016.
(ii) Pursuant to Code of the City of Miami, Florida, as amended Section 18-176 through
18-182, all costs incurred by the Seller in the transfer of the Property, including the
Seller's cost of conducting the Request for Proposals, issued on November 21, 2016,
shall be paid by the Purchaser by cashier's check or certified check at Closing.
(iii) If either Party shall be unable to timely perform any of its obligations under this
Agreement as a result of Force Majeure (as hereinafter defined), such Party shall not be
liable for loss or damage for such failure and the other Party shall not be released from any
of its obligations under this Agreement. If either Party is delayed or prevented from
performing any of its obligations as a result of Force Majeure, the period of such delay or
prevention shall be added to the time herein provided to the performance of any such
obligation. "Force Majeure" shall mean any period of delay which arises from or through
acts of God; strikes, lockouts, or labor difficulty; explosion, sabotage, accident, riot or civil
commotion; pandemic; embargoes, shortages of materials (including, without limitation,
petroleum products), accidents or sabotage; acts of terrorism or war; or any other
circumstances or conditions for which it is not responsible and are not within its control.
(iv) The Project shall be limited to a maximum height as allowed by Ordinance No. 13114,
the Zoning Ordinance of the City of Miami, Florida, as amended, or any successor Zoning
Code as may be adopted by the City of Miami.
(v) Notwithstanding anything to the contrary contained herein or in any other agreement
between City and Purchaser, the City grants to Purchaser, its agents, representatives,
employees, contractors, sub -contractors, and consultants (for the purposes of this Section
31(v) of this Agreement, collectively, referred to as "Purchaser"), temporary access rights
to enter upon, subject to the conditions, terms, and limitations herein contained and solely
for the term of this Agreement, the Property for the limited purposes of securing the
Property so that it is free from vandalism and vagrancy, maintaining a fence on the
Property, and removing and disposing of debris and other foreign objects placed on the
Property by third parties (collectively "Securing the Property, Fence Repair, and Debris
Removal"), subject to Purchaser providing the City's Housing and Community
Development Director at 14 NE 1st Ave, Second Floor, Miami, FL 33132, with at least
(12) hours advance written notice of when (dates and times) site access is required by
Purchaser.
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After the Effective Date of this Agreement and until Closing, unless this Agreement is
terminated, cancelled, or expires, Purchaser agrees to maintain the fence on the Property,
to secure the Property so that it is free from vandalism and vagrancy, and to remove debris
and other foreign objects placed on the Property by third parties, in manners deemed
acceptable to the City in its reasonable discretion. Purchaser explicitly agrees to maintain
the fence on the Property, to secure the Property so that it is free from vandalism and
vagrancy, and to remove debris and other foreign objects placed on the Property by third
parties within ten (10) days after receiving a written request from the City, at Purchaser's
sole cost and expense. The right of access granted in this Section 31(v) in this Agreement
shall be exercised and used by Purchaser in such a manner as not to cause any material
damage or destruction whatsoever to the Property and any improvements or structures
thereon, and not to cause interruption of the use of the Property by the City, its employees,
officers, and agents. After the Effective Date of this Agreement and until Closing, the
Purchaser agrees to repair any damages to the Property caused by the Purchaser, its
employees, representatives and subcontractors, to the Property's original state or better.
Notwithstanding anything contained in this Agreement to the contrary, as consideration for
the City granting a continuing right of entry, the Purchaser hereby specifically agrees to
immediately pay and/or cause to be removed any liens or encumbrances filed against the
Property as a result of any actions taken by or on behalf of Purchaser in connection with
the Securing the Property, Fence Repair, and Debris Removal on the Property.
As lawful consideration for the permission granted by the C ity of Miami to enter upon
the Property for purposes of Securing the Property, Fence Repair, and Debris Removal on
the Property, the Purchaser hereby releases, waives, discharges, saves and holds harmless,
indemnifies, agrees to defend at its sole cost and expense, and covenants not to sue the City,
its officials, employees, o f f i c e r s, depai intents, instrumentalities, an d agents and
representatives (hereinafter collectively referred to as the "CITY"), from all liability
for any and all loss or damage, and any claims, suits, causes of action, actions,
liabilities, or demands therefor on account of injury, wrongful death, to person or
damage, loss, destruction or alteration of property or resulting in death, injury, loss,
damage, destruction or alteration of persons and/or property or attributable or related to
the access granted to Purchaser and its contractors, sub -contractors, employees, consultants,
agents, or representatives through the acts, errors, negligence, or omissions of Purchaser
while the Purchaser is in, or upon the Property, regardless of whether or not such claim,
demand, cause of action, suits, damage, liability, or loss is caused or alleged to be caused
in part by City, its employees, officers, instrumentalities, depai intents, officials,
representatives, and agents. Nothing herein shall be deemed to abridge the rights, if any, of
the City to seek contribution where appropriate.
The provisions of this indemnification, release, and covenant not to sue shall survive the
cancellation, expiration, full performance, Closing, or termination of this Agreement.
[Signatures appear on the following page]
19
IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement, as of the day
and year first above written.
ATTEST:
Print Name Date
Print Name Date
MARTIN LUTHER KING ECONOMIC
DEVELOPMENT CORPORATION,
a Florida not for profit corporation:
By:
Print Name:
Title:
Date:
ATTEST: CITY OF MIAMI, a municipal
corporation of the State of Florida:
Todd B. Hannon, City Clerk By:
Date: Arthur Noriega V, City Manager
Approved As To Form And
Correctness:
Victoria Mendez
City Attorney
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Approved by Risk
Management Department:
Ann -Marie Sharpe
Director
21
EXHIBIT "A"
AUTHORIZED PROPOSAL
Purchaser will effectuate a redevelopment of the site to include the following:
Demolition of all existing structures on site and construction of:
1. Performing arts center
• Fixed stage with moveable/stackable seating, no orchestra pit or
balcony/mezzanine level, will need A/V control room/area
• Adaptable for approx. 400-person seated events (e.g., banquet hall) —
targeting approximately 6,000 SF
• Storage for seating, tables and room dividers
• Kitchen facilities: catering kitchen to receive food and keep warm/cold
(i.e., no grease trap/ventilation for commercial kitchen)
• The Purchaser shall make best efforts to secure appropriate and adequate
financing to construct the performing arts center in substantial compliance
with the Authorized Proposal. If the Purchaser and Seller agree in writing
that appropriate and adequate financing is unavailable for the construction
of the performing arts center in substantial compliance with the
Authorized Proposal, then the Purchaser and Seller may agree in writing to
substitute the construction of the performing arts center with other CDBG
eligible project activities.
2. Housing
• 100% affordable housing (residents' income will average to 60% AMI,
but will range between 30-80% AMI)
• Minimum of 40one-bedroom units
• Beautiful amenities
• Purchaser agrees to make reasonable and best efforts to secure additional
financing to provide additional affordable housing units in addition to the
minimum forty (40) affordable rental units the Purchaser has agreed to
construct.
3. Other
• Ground floor commercial as required by code
• Parking per code (including reductions)
• Proposed design of the building will incorporate a reference to the current
facade of the Carver Theater
Attachment 1
Resolution No. 23-
Attachment 2
Performance Requirements and Restrictions*
The following Performance Requirements will apply:
Property Conveyance/Benchmarks
1. The construction of the Project must commence within twenty-five (25) months from the
Effective Date.
The Project must be completed (all Affordable Units constructed and a performing arts
center [i.e., the theater on the Property] constructed all in substantial compliance with the
Authorized Proposal, Certificates of Occupancy/Completion or Temporary Certificate of
Use issued) no later than forty-eight (48) months from the Closing Date subject to Force
Majeure as defined in Section 31(iii) of the Purchase and Sale Agreement. The Property
will automatically revert back to the Seller to the extent provided in the Deed.
2. Any developer mortgages or other encumbrances on the Property will be subject to
approval by the City of Miami, Department of Housing and Community Development as
and to the extent provided in the Deed.
3. The Closing will take place simultaneously with closing of any and all construction
financing.
4. As set forth above, evidence of the financial commitments from the lender(s) for full
project financing must be provided to the Seller prior to the Closing.
Project Restrictions:
1. In accordance with Section 29-B(A) of the Charter of the City of Miami, Florida, as
amended ("City Charter"), a minimum of forty (40) one -bedroom residential rental
Units must be constructed on the Property and maintained as affordable housing and
occupied by Eligible Residents, in accordance with the provisions of this Agreement,
for a period of no less than thirty (30) years from the date that all forty (40) one -
bedroom residential rental Units (and any additional Units provided in addition to the
minimum forty (40) Units) are fully leased to and occupied by Eligible Residents. The
Property will automatically revert to the City to the extent provided in the Deed.
2. Units on the Property must be rented to Eligible Residents as follows (the Property will
automatically revert back to the Seller to the extent provided in the Deed):
a. During the Affordability Period, the Affordable Units must be rented by Eligible
Residents whose annual income is equal to or less than eighty percent (80%) of
AMI as published annually by the HUD.
3. Deed will be restricted as an affordable rental property, as described herein, during the
Affordability Period with reverter provisions that will last throughout the Affordability
Period. The Affordability Period for each Unit shall commence on the date that all
Affordable Units are rented to Low Income Persons, and shall expire thirty (30) years
thereafter. A restrictive covenant will be placed on the land, insuring thirty (30) years of
affordability for the eighteen forty (40) Units (and any additional Units provided in
addition to the minimum forty (40) Units) described herein for Low Income Persons.
Attachment 3
INSURANCE REQUIREMENTS FOR A CERTIFICATE OF INSURANCE- PURCHASE AND SALE
AGREEMENT MARTIN LUTHER KING ECONOMIC DEVELOPMENT CORPORATION
L Commercial General Liability
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence $1,000,000
General Aggregate Limit $ 2,000,000
Products/Completed Operations $ 1,000,000
Personal and Advertising Injury $1,000,000
B. Endorsements Required
City of Miami listed as an additional insured
Contingent and Contractual Liability
Premises and Operations Liability
Explosion, Collapse and Underground Hazard
Primary Insurance Clause Endorsement
IL Business Automobile Liability
A. Limits of Liability
Bodily Injury and Property Damage Liability
Combined Single Limit
Any Auto
Including Hired, Borrowed or Non -Owned Autos
Any One Accident $ 1,000,000
B. Endorsements Required
City of Miami listed as an additional insured
III. Worker's Compensation
Limits of Liability
Statutory -State of Florida
Waiver of subrogation
Employer's Liability
A. Limits of Liability
$1,000,000 for bodily injury caused by an accident, each accident.
$1,000,000 for bodily injury caused by disease, each employee
$1,000,000 for bodily injury caused by disease, policy limit
The above policies shall provide the City of Miami with written notice of cancellation or material change
from the insurer not less than (30) days prior to any such cancellation or material change, or in accordance to
policy provisions.
Companies authorized to do business in the State of Florida, with the following qualifications, shall issue all
insurance policies required above:
The company must be rated no less than "A-" as to management, and no less than "Class V" as to
Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company,
Oldwick, New Jersey, or its equivalent. All policies and /or certificates of insurance are subject to review
and verification by Risk Management prior to insurance approval.
INSURANCE REQUIREMENTS FOR A CERTIFICATE OF INSURANCE -CONSTRUCTION
REQUIREMENTS MARTIN LUTHER KING ECONOMIC DEVELOPMENT CORPORATION
PURCHASE AND SALE AGREEMENT:
L Commercial General Liability
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence $1,000,000
General Aggregate Limit $ 2,000,000
Products/Completed Operations $ 1,000,000
Personal and Advertising Injury $1,000,000
B. Endorsements Required
City of Miami listed as an additional insured
Contingent and Contractual Liability
Premises and Operations Liability
Explosion, Collapse and Underground Hazard
Primary Insurance Clause Endorsement
IV. Business Automobile Liability
A. Limits of Liability
Bodily Injury and Property Damage Liability
Combined Single Limit
Any Auto
Including Hired, Borrowed or Non -Owned Autos
Any One Accident $ 1,000,000
B. Endorsements Required
City of Miami listed as an additional insured
V. Worker's Compensation
A. Limits of Liability
Statutory -State of Florida
Waiver of subrogation
Employer's Liability
B. Limits of Liability
$1,000,000 for bodily injury caused by an accident, each accident.
$1,000,000 for bodily injury caused by disease, each employee
$1,000,000 for bodily injury caused by disease, policy limit
IV. Umbrella Policy (Excess Follow Form)
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence $ 2,000,000
Aggregate $ 2,000,000
City of Miami listed as an additional insured. Coverage is excess follow form over the general
liability and auto policies.
V. Payment and Performance Bond
City of Miami listed as an Obligee
VI. Builders' Risk
$ TBD
Causes of Loss: All Risk -Specific Coverage Project Location
Valuation: Replacement Cost
Deductible: $10,000 All other Perils
5% maximum on Wind/Hail and Flood
City of Miami listed as loss payees
The above policies shall provide the City of Miami with written notice of cancellation or material change
from the insurer not less than (30) days prior to any such cancellation or material change, or in accordance to
policy provisions.
Companies authorized to do business in the State of Florida, with the following qualifications, shall issue all
insurance policies required above:
The company must be rated no less than "A-" as to management, and no less than "Class V" as to
Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company,
Oldwick, New Jersey, or its equivalent. All policies and /or certificates of insurance are subject to review
and verification by Risk Management prior to insurance approval.