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HomeMy WebLinkAboutAgenda Item Cover PageAGENDA ITEM COVER PAGE File ID: #16518 Resolution Sponsored by: Commissioner Damian Pardo A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), PURSUANT TO SECTION 18-85(A) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE CITY MANAGER'S FINDING(S), ATTACHED AND INCORPORATED AS EXHIBIT "B," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS FOR THE CITY OF MIAMI ("CITY") AND WAIVING THE REQUIREMENTS FOR SAID PROCEDURES; ALLOCATING FUNDING IN FORM OF A FORGIVABLE LOAN IN AN AMOUNT NOT TO EXCEED FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000.00) FROM THE DISTRICT 2 SHARE OF THE CITY OF MIAMI'S MIAMI FOR EVERYONE ("MFE") PROGRAM, TO DFI MUNDY, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), TO DEVELOP TWO, FOURPLEXES ON THE PARCELS DESCRIBED IN EXHIBIT "C," ATTACHED AND INCORPORATED, ON WHICH THE DEVELOPER WILL CAUSE TO BE CONSTRUCTED A NEW AFFORDABLE HOUSING DEVELOPMENT TO BE KNOWN AS "DFI MUNDY AFFORDABLE HOUSING" ("PROJECT") THAT WILL CONTAIN NO FEWER THAN EIGHT (8) CITY -ASSISTED RESIDENTIAL RENTAL UNITS FOR ELIGIBLE RESIDENTS WITH ANNUAL INCOME EQUAL TO OR LESS THAN EIGHTY PERCENT (80%) OF AREA MEDIAN INCOME ("AMI") AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AS FURTHER DESCRIBED IN EXHIBIT "D," ATTACHED AND INCORPORATED, SUBJECT TO THE RECEIPT BY THE CITY MANAGER OF THE APPROVAL OF THE PROJECT BY THE CITY'S HOUSING AND COMMERCIAL LOAN COMMITTEE ("HCLC APPROVAL") AND SUBJECT TO THE TERMS, CONDITIONS, AND RESTRICTIONS CONTAINED HEREIN AND IN THE HCLC APPROVAL; 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, SUBJECT TO COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE OF FLORIDA, LOCAL, AND CITY LAWS, RULES, AND REGULATIONS FOR AFFORDABLE HOUSING PROJECTS AND MFE PROGRAM FUNDS AND SUBJECT TO THE DEVELOPER FULFILLING ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE HCLC APPROVAL, IN ORDER TO ALLOCATE THE CITY'S MFE FUNDING TO THE PROJECT IN THE FORM OF A FORGIVABLE LOAN; PROVIDING FOR AN EFFECTIVE DATE. City of Miami Legislation Resolution Enactment Number: R-24-0346 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 16518 Final Action Date:9/12/2024 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), PURSUANT TO SECTION 18-85(A) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE CITY MANAGER'S FINDING(S), ATTACHED AND INCORPORATED AS EXHIBIT "B," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS FOR THE CITY OF MIAMI ("CITY") AND WAIVING THE REQUIREMENTS FOR SAID PROCEDURES; ALLOCATING FUNDING IN FORM OF A FORGIVABLE LOAN IN AN AMOUNT NOT TO EXCEED FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000.00) FROM THE DISTRICT 2 SHARE OF THE CITY OF MIAMI'S MIAMI FOR EVERYONE ("MFE") PROGRAM, TO DFI MUNDY, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), TO DEVELOP TWO, FOURPLEXES ON THE PARCELS DESCRIBED IN EXHIBIT "C," ATTACHED AND INCORPORATED, ON WHICH THE DEVELOPER WILL CAUSE TO BE CONSTRUCTED A NEW AFFORDABLE HOUSING DEVELOPMENT TO BE KNOWN AS "DFI MUNDY AFFORDABLE HOUSING" ("PROJECT") THAT WILL CONTAIN NO FEWER THAN EIGHT (8) CITY -ASSISTED RESIDENTIAL RENTAL UNITS FOR ELIGIBLE RESIDENTS WITH ANNUAL INCOME EQUAL TO OR LESS THAN EIGHTY PERCENT (80%) OF AREA MEDIAN INCOME ("AMI") AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AS FURTHER DESCRIBED IN EXHIBIT "D," ATTACHED AND INCORPORATED, SUBJECT TO THE RECEIPT BY THE CITY MANAGER OF THE APPROVAL OF THE PROJECT BY THE CITY'S HOUSING AND COMMERCIAL LOAN COMMITTEE ("HCLC APPROVAL") AND SUBJECT TO THE TERMS, CONDITIONS, AND RESTRICTIONS CONTAINED HEREIN AND IN THE HCLC APPROVAL; 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, SUBJECT TO COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE OF FLORIDA, LOCAL, AND CITY LAWS, RULES, AND REGULATIONS FOR AFFORDABLE HOUSING PROJECTS AND MFE PROGRAM FUNDS AND SUBJECT TO THE DEVELOPER FULFILLING ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE HCLC APPROVAL, IN ORDER TO ALLOCATE THE CITY'S MFE FUNDING TO THE PROJECT IN THE FORM OF A FORGIVABLE LOAN; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 13, 2023, pursuant to Resolution No. R-23-0178, the City of Miami ("City") created the Miami For Everyone ("MFE") Program to assist communities facing the long- term complications resulting from declared emergencies and to address the specific needs of the most vulnerable residents and businesses, through a strategy of focusing the provision of support towards priority areas of need that will further stabilize economic conditions within City Districts; and WHEREAS, on September 23, 2021, pursuant to Resolution No. R-21-0387, the City of Miami ("City") Commission approved an allocation of Four Hundred Forty Thousand, Eight Hundred Forty Six and 00/100 Dollars ($440,846.00) in the form of a forgivable loan in Community Development Block Grant ("CDBG") funds to Casa Valentina, Inc., a Florida Not For Profit Corporation ("Casa Valentina") in order to purchase land located at 3121 Mundy Street and 3173 Mundy Street and other parcels (collectively, "Parcels") to develop no fewer than fifty (50) City -Assisted Units to be occupied by eligible residents whose annual income is equal to or less than eighty percent (80%) of area median income ("AMI") as published annually by the United States Department of Housing and Urban Development ("HUD") ("Eligible Residents") for a period of no fewer than thirty (30) years ("Initial Project"); and WHEREAS, on October 14, 2021, pursuant to Resolution No. R-21-0427, the City of Miami ("City") Commission approved an allocation of Two Million Dollars ($2,000,000.00) in the form of a forgivable loan in American Rescue Plan Act of 2021 ("ARPA") funds to Casa Valentina in order to complete the purchase of the Parcels and to develop and construct the City -Assisted Units to be occupied by eligible residents; and WHEREAS, in early March 2023, Casa Valentina notified the City that the Initial Project contemplated under the ARPA was not possible due to zoning restrictions; and WHEREAS, in September 2023, Casa Valentina notified the City that it will no longer be able to complete the Initial Project; and WHEREAS, Dragonfly Real Estate Investment ("Dragonfly"), a for -profit organization, formed in 2014, currently has over four hundred (400) affordable housing units in various stages of development; and WHEREAS, Dragonfly submitted a grant application, attached and incorporated as Exhibit "A", to the City for MFE Program funds in order to supplement the assumption of the ARPA loan, and to further develop, and take over the stalled Initial Project and re -develop it as a new project, consisting of two fourplexes on the Parcels ("Updated Project"), as further described in Exhibit "C," attached and incorporated; and WHEREAS, Dragonfly Real Estate Investment created DFI Mundy, LLC., a Florida Limited Liability Company ("Developer"), for the sole purpose of assuming the original ARPA and CDBG loans from Casa Valentina and serving as the borrowing vehicle to accept any potential MFE Program funds; and WHEREAS, upon completion of the Updated Project, the development will house a minimum of eight (8) households whose income is equal to or less than eighty percent (80%) of area median income, as published annually by the United States Department of Housing and Urban Development ("AMI"); and WHEREAS, on September 26, 2024, a proposed Resolution shall request authorization for Developer to assume the ARPA Loan, in order to complete the Updated Project; and WHEREAS, the City's Housing and Commercial Loan Committee ("HCLC") has not yet reviewed a completed proposal for the Updated Project in order for the Updated Project to receive a forgivable loan of MFE Program Funds and, therefore, any City Commission approval is subject to the approval of the Project by HCLC ("HCLC Approval") and the Developer fulfilling, in a timely manner, any and all terms, requirements, and conditions set forth in the HCLC Approval; and WHEREAS, the City's District 2 Commissioner ("Commissioner") wishes to provide grant funds from the Commissioner's share of the City's MFE Program funds in an amount not to exceed Four Hundred Fifty Thousand and 00/100 Dollars ($450,000.00) ("Funds") for the Project; and WHEREAS, pursuant to Section 18-85(a) of the Code of the City of Miami, Florida, as amended ("City Code"), the City Manager has made a written finding, attached and incorporated as Exhibit "B," that competitive negotiation methods and procedures are not practicable or advantageous for the City's provision of the Funds for the Updated Project; and WHEREAS, the City Manager is requesting authority from the City Commission to negotiate and execute any and all documents necessary, all in forms acceptable to the City Attorney, for the allocation of the Funds for the Updated 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 of this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. Pursuant to Section 18-85(a) of the City Code, by a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, the City Manager's written finding, attached and incorporated as Exhibit "B", that competitive negotiation methods and procedures are not practicable or advantageous for the City's provision of the Funds for the Updated Project and waiving the requirements for said procedures, are hereby ratified, approved, and confirmed. Section 3. The City Manager is authorized' to allocate the Funds from the Commissioner's share of the City's MFE Program funds for the Updated Project, subject to the receipt by the City Manager of the HCLC Approval. Section 4. The City Manager is further authorized' to negotiate and execute any and all documents necessary, modifications, and amendments, all in forms acceptable to the City Attorney, for said purpose, subject to the receipt by the City Manager of the HCLC Approval. Section 5. Subject to the receipt by the City Manager of the HCLC Approval and the requirements contained herein, the City Commission hereby authorizes' and directs the City Manager to allocate funding in the form of a forgivable loan in an amount not to exceed Four Hundred Fifty Thousand and 00/100 Dollars ($450,000.00) in MFE funds for the Updated Project being developed by Developer, provided that Developer fulfills any and all terms and conditions set forth in the HCLC Approval and subject to compliance with all applicable laws. Section 6. Subject to the receipt by the City Manager of the HCLC Approval, 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, subject to compliance with all applicable laws and subject to the Developer fulfilling all of the terms and conditions of the HCLC Approval, in the form of a forgivable loan to the Developer. 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 7. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ge Wy ng III, C y ttor -y 9/3/2024 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.