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HomeMy WebLinkAboutSubstitution Memo from Department of Real Estate and Asset ManagementCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Arthur Noriega V, City Manager Andrew Frey, Director,_'�, Department of Real Estate and Asset Management DATE: SUBJECT: REFERENCES: ENCLOSURES February 12, 2025 Substitution for Item RE.12 — File No. 17211 February 13, 2025 File Number 15271 Substitution item RE.12 (File 17211) This is to request at the City Commission meeting on February 13, 2025, the substitution for item RE.12 amending Resolution no. R-25-0021 to revise the funding sources for the settlement and purchase agreement to provide that funding for the settlement and acquisition of the alternative property in an amount not to exceed eleven million seven hundred forty thousand dollars ($11,740,000.00) shall be allocated from the District 3 Miami Forever Bond Affordable Housing Fund, District 3 Real Estate Acquisition and Accessible Housing GF Capital Project No. 40- B183416, District 3 parks, streets, affordable housing, and lighting improvements reserve GF Capital Project No. 40- B40713A, District 3 Affordable Housing Trust Fund allocation, and District 3 Public Benefit Trust Fund. Declaring the official intent of the City of Miami to issue taxable Miami Forever affordable housing bonds, in one or more series, to the extent permissible under applicable laws, rules, and regulations regarding the Miami Forever affordable housing bonds, and use a portion of the Miami Forever affordable housing bonds in the total amount of six million, one hundred sixty-three thousand, sixteen dollars ($6,163,016.00) to reimburse the City for funds advanced by it for expenditures incurred and to be incurred for the purposes stated in this substitution item. DocuSigned by: Approved: 14 ea�flt L . February 12, 2025 I 10:15:29 EST fieee+a+... Arthur Noriega V, City Manager Page 1 of 1 n dAos i-\i,37) (nolo -rror► oe4fAs_/411QA s-kockji1,01 City of Miami Resolution Legislation City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 17211 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION, BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, WITH ATTACHMENT(S), RATIFYING, APPROVING, AND CONFIRMING THE EXECUTED SETTLEMENT AGREEMENT FOR EMINENT DOMAIN CASE NO. 21-027229-CA-01 ("SETTLEMENT") AND THE INCORPORATED PURCHASE AND SALE AGREEMENT ("PURCHASE AGREEMENT"), ATTACHED AND INCORPORATED AS EXHIBIT "A," AUTHORIZED PURSUANT TO RESOLUTION R-25-0021, ADOPTED ON JANUARY 23, 2025; AUTHORIZING AND APPROVING THE CONDITION PRECEDENT TO THE EFFECTIVENESS OF THE PURCHASE AGREEMENT CONTAINED IN SECTIONS 2 AND 5 OF THE PURCHASE AGREEMENT TO AUTHORIZE AN INCREASE IN COST BY EIGHT HUNDRED AND FORTY-SEVEN THOUSAND DOLLARS ($847,000.00) FOR A REVISED PURCHASE PRICE EQUAL TO NINE MILLION, EIGHT HUNDRED FORTY-SEVEN THOUSAND DOLLARS ($9,847,000.00) ("PURCHASE PRICE") FOR THE ACQUISITION OF REAL PROPERTY IDENTIFIED BY FOLIO NUMBERS 01-4102-006-6450, 01-4102-006-6460, 01- 4102-006-6470, 01-4102-006-6480 AND 01-4102-006-6490 LOCATED IN MIAMI, FLORIDA (COLLECTIVELY, "ALTERNATIVE PROPERTY"), FOR A 54 TOTAL AMOUNT NOT TO EXCEED ELEVEN MILLION, SEVEN HUNDRED -11 FORTY THOUSAND DOLLARS ($11,740,000.00) FOR THE SETTLEMENT ffi AND ACQUISITION OF THE ALTERNATIVE PROPERTY FOR AFFORDA HOUSING, TO COVER THE COST OF SAID SETTLEMENT AND ACQUISITION, INCLUDING BUT NOT LIMITED TO THE PURCHASE PRICE1 BENEFITS -BASED ATTORNEY'S FEES, EXPERT FEES, LITIGATION COST, SURVEYS, ENVIRONMENTAL REPORTS, TITLE INSURANCE, DEMOLI a` SECURING THE PROPERTY, PROJECT SIGNAGE AND ALL RELATED - CLOSING COSTS ASSOCIATED WITH SAID ACQUISITION, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE SETTLEMENT AGREEMENT AND PURCHASE AGREEMENT; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS AND MODIFICATIONS TO SAID AGREEMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY TO EFFECTUATE THE EXECUTED SETTLEMENT AGREEMENT AND PURCHASE AGREEMENT FOR THE PURPOSES SPECIFIED HEREIN; AMENDING RESOLUTION NO. R-25-0021 TO REVISE THE FUNDING SOURCES FOR THE SETTLEMENT AND PURCHASE AGREEMENT TO PROVIDE THAT FUNDING FOR THE SETTLEMENT AND ACQUISITION OF THE ALTERNATIVE PROPERTY IN AN AMOUNT NOT TO EXCEED ELEVEN MILLION SEVEN HUNDRED FORTY THOUSAND DOLLARS ($11,740,000.00) SHALL BE ALLOCATED FROM THE DISTRICT 3 MIAMI FOREVER BOND AFFORDABLE HOUSING FUND, DISTRICT 3 REAL ESTATE ACQUISITION AND ACCESSIBLE HOUSING GF CAPITAL PROJECT NO. 40-B183416, DISTRICT 3 PARKS, STREETS, AFFORDABLE HOUSING, AND LIGHTING IMPROVEMENTS RESERVE GF CAPITAL PROJECT NO. 40- City of Miami Page 1 of 5 File ID: 17211 (Revision:) Printed On: 2/7/2025 File ICI: 17211 Enactment Number: B40713A, DISTRICT 3 AFFORDABLE HOUSING TRUST FUND ALLOCATION, AND DISTRICT 3 PUBLIC BENEFIT TRUST FUND,SUBJECT TO ALLOCATIONS, APPROPRIATIONS AND BUDGETARY APPROVAL HAVING BEEN PREVIOUSLY MADE OR AS MAY BE SEPARATELY REQUIRED PRIOR TO EXPENDITURE, AND SUBJECT TO COMPLIANCE WITH ALL FEDERAL, STATE, AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS FOR SAID PURPOSES; DECLARING THE OFFICIAL INTENT OF THE CITY OF MIAMI TO ISSUE TAXABLE MIAMI FOREVER AFFORDABLE HOUSING BONDS, IN ONE OR MORE SERIES, TO THE EXTENT PERMISSIBLE UNDER APPLICABLE LAWS, RULES, AND REGULATIONS REGARDING THE MIAMI FOREVER AFFORDABLE HOUSING BONDS, AND USE A PORTION OF THE MIAMI FOREVER AFFORDABLE HOUSING BONDS IN THE TOTAL AMOUNT OF SIX MILLION, ONE HUNDRED SIXTY-THREE THOUSAND, SIXTEEN DOLLARS ($6,163,016.00) TO REIMBURSE THE CITY FOR FUNDS ADVANCED BY IT FOR EXPENDITURES INCURRED AND TO BE INCURRED FOR THE PURPOSES STATED HEREIN. WHEREAS, pursuant to Resolution No. R-21-0177, adopted on April 22, 2021, the City of Miami ("City") authorized the City Manager to acquire certain real properties, including certain riverfront properties located at 5 Southwest South River Drive and 27 Southwest South River Drive, Miami, Florida (collectively, the "Riverfront Property") by negotiated acquisition or by virtue of an eminent domain action for the express public purpose of establishing public parks within the City; and WHEREAS, the City filed a Petition in eminent domain against South River Warehouse, LLC, a Florida Limited Liability Company ("Respondent") in the Circuit Court of the Eleventh Judicial Circuit in and for Miami -Dade County, Florida, Case No. 21-027229-CA-01 for the condemnation of the Riverfront Property ("Case"); and WHEREAS, the Circuit Court issued a final judgment in favor of the City determining that the taking of the Riverfront Property is reasonably necessary to serve the public purposg forNa which it is being acquired ("Final Judgment"); and ci WHEREAS, pursuant to Section 73.091 and 73.092, Florida Statutes, the CitreVioulre further subject to the payment of attorneys' fees, experts' fees, and litigation costs capMed taxable under the amount of the verdict rendered by the jury; and ' zlz n � WHEREAS, the City identified an assemblage of properties located within G r: Commission District 3 and identified by Folio numbers 01-4102-006-6470, 01-4102-U06-6 0, 01-4102-006-6450, 01-4102-006-6480 and 01-4102-006-6490, in Miami, Florida (col(otivei, the "Alternative Property"), the acquisition of which would be in the public's best interest; and WHEREAS, the City plans to construct an affordable housing project on the Alternative Property given the City's emergency need of affordable housing that is in the best interest of the City and the community; and WHEREAS, the Alternative Property is owned by Garafia, LLC, a Florida Limited Liability Company ("Seller"), which is affiliated with Respondent by common ownership; and WHEREAS, pursuant to Resolution No. R-25-0021, adopted on January 23, 2025, the City Manager negotiated and executed a settlement agreement with the Respondent 0 City of Miami Page 2 of 5 File ID: 17211 (Revision:) Printed on: 2/7/2025 File ID: 17211 Enactment Number: ("Settlement Agreement"), agreeing to abandon condemnation of the Riverfront Property, and in lieu thereof, enter into the incorporated purchase and sale agreement with Seller ("Purchase Agreement") for the acquisition of the Alternative Property, with such executed Settlement Agreement and Purchase Agreement attached and incorporated as Exhibit "A,"; and WHEREAS, sections 2 and 5 of the Purchase Agreement include, as a condition precedent to the effectiveness of such Purchase Agreement, that the Miami City Commission approve, at its sole and absolute discretion by a four -fifths affirmative vote, an increase to the purchase price by an additional cost of Eight Hundred Forty -Seven Thousand Dollars ($847,000.00) for a revised purchase price equal to Nine Million, Eight Hundred Forty -Seven Thousand Dollars ($9,847,000.00) ("Purchase Price"); and WHEREAS, pursuant to Section 166.045(b), Florida Statutes, titled "Proposed Purchase of Real Property by Municipality; Confidentiality of Records; Procedure," for each purchase in an amount in excess of Five Hundred Thousand Dollars ($500,000.00), the governing body shall obtain at least two (2) appraisals by appraisers approved pursuant to Section 253.025, Florida Statutes; and WHEREAS, the City obtained two (2) appraisal reports from licensed State of Florida certified appraisers; and WHEREAS, Section 166.045(b), Florida Statutes, further states that if the agreed purchase price exceeds the average price of the two (2) appraisals, the governing body is required to approve the purchase by an extraordinary vote (i.e. a four -fifths (4/5ths) vote of the City Commission); and WHEREAS, the total cost for the Settlement Agreement and Purchase Agreement for the acquisition of the Alternative Property shall not exceed Eleven Million, Seven Hundred Forty Thousand Dollars ($11,740,000.00), which cost is inclusive of the Purchase Price, benefits - based attorney's fees, expert fees, litigation costs, surveys, environmental reports, title insurance, demolition, securing the property, project signage and all related closing costs associated with said acquisition, in accordance with the terms and conditions of the Settlement Agreement and Purchase Agreement; and WHEREAS, the funding sources initially approved for the Settlement Agreemennd Purchase Agreement, as authorized by Resolution No. R-25-0021, must be revised te• rpvic4 that funding for the total amount not to exceed Eleven Million, Seven Hundred Forty mdusaii+ Dollars ($11,740,000.00) shall be allocated as follows: Six Million, One Hundred Sixt1Three�, Thousand, Sixteen Dollars ($6,163,016.00) from the District 3 Miami Forever Bond A ikJable Housing fund; One Miliion, One Hundred Sixty -Eight Thousand, Nine Hundred Eightp ur Dollars ($1,168,984.00) from the District 3 Real Estate Acquisition and Accessible 1-16AngeF, Capital Project No. 40-B183416; Two Hundred and Eight Thousand Dollars ($208,00) fm the District 3 Parks, Streets, Affordable Housing, and Lighting Improvements Reserve 4F, co Capital Project No. 40-B40713A; Two Million Dollars ($2,000,000.00) from the District"3 Affordable Housing Trust Fund allocation; and Two Million, Two Hundred Thousand Dollars ($2,200,000.00) from the District 3 Public Benefit Trust fund (collectively, the "Funding Sources"); and WHEREAS, on March 14, 2019, pursuant to Resolution Nos. R-19-0062 and R-19-0111, the City Commission authorized the initiation of validation proceedings for the November 7, 2017 Bond Referendum ("Voter Referendum") and the issuance of the City's taxable and tax- exempt bonds in the aggregate principal amount not exceeding Four Hundred Million Dollars City of Miami Page 3 of 5 File ID: 17211 (Revision:) Printed on: 2/7/2025 File ID: 17211 Enactment Number: ($400,000,000.00) in one or more separate series of City Tax -Exempt and Taxable Limited Ad Valorem Tax Bonds (collectively, "Miami Forever Bonds"), including tax-exempt and taxable bonds in one or more separate series not exceeding One Hundred Million Dollars ($100,000,000.00) for affordable housing and economic development capital projects ("Affordable Housing and Economic Development Bonds"); and WHEREAS, for all series of the Affordable Housing and Economic Development Bonds, Resolution Nos. R-19-0111, R-19-0325, and R-20-0337 set forth the aforementioned seven (7) Affordable Housing Miami Forever Bonds Projects Strategies as follows: i) Affordable Workforce New Rental Strategy, ii) Homeownership Preservation Strategy, iii) City Acquisition of Land, iv) Affordable Homeownership Strategy, v) Affordable Rental Housing Preservation Strategy, vi) Affordable New Construction Rental Strategy, and vii) Long Term Lease/Build/Manage Strategy; and WHEREAS, the City Acquisition of Land Strategy ("Acquisition Strategy") permits the City to acquire buildable vacant parcels of land suitable for the development of mixed use/mixed income affordable rental or homeownership developments/units to be built by the City or by organizations that have been procured through a competitive process; and WHEREAS, the City Commission has set forth certain requirements, terms, and conditions that are set forth in the City Acquisition of Land Program Summary, for certain costs/activities that are eligible for City funding under the Acquisition Strategy; and WHEREAS, funding from the District 3 Miami Forever Bond Affordable Housing fund shall be strictly limited to funding a portion of the Purchase Price, and shall not be utilized in connection with the settlement of attorney's fees, experts' fees, or litigation costs; and WHEREAS, the City Commission has determined that it is in the best interests of the City in accordance with the Voter Referendum and the Miami Forever Limited Ad Valorem Bonds Final Validation Order of December 16, 2019 ("Bonds Validation Order"), to authorize the allocation of Six Million, One Hundred Sixty -Three Thousand, Sixteen Dollars ($6,163,016.00) in Miami Forever Bond Funds for the development of the Alternative Property for certain costs/activities that are eligible for City funding under the Affordable Housing Long Term Lease/Build Manage Strategy; and WHEREAS, such allocations shall be in compliance with all applicable Federal, §tate of Florida, local, and City laws, rules, regulations, and procedures, including, but not limite to, khe Bonds Strategies, the Miami Forever Bond Validation Order, the Charter of the City of Ijam Florida, as amended ("City Charter"), and the Code of the City of Miami, Florida, as E Iide ' ("City Code") (collectively, "Laws"); NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE R OIN MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resoliaionie hereby adopted by reference thereto and incorporated herein as if fully set forth in ( is .`tion. Section 2. The City Commission hereby ratifies, approves, and confirms the executed Settlement Agreement and incorporated Purchase Agreement, attached and incorporated as Exhibit "A." Section 3. The City Commission hereby approves the condition precedent to the City of Miami Page 4 of 5 File ID: 17211 (Revision:) Printed on: 2/7/2025 File ID: 17211 Enactment Number: effectiveness of the Purchase Agreement contained in sections 2 and 5 of the Purchase Agreement to authorize the increase to the Purchase Price. Section 4. The City Manager is further authorized' to negotiate and execute all necessary documents, including amendments and modifications to said agreements, in a form acceptable to the City Attorney, as may be necessary to effectuate the executed Settlement Agreement and Purchase Agreement for the purposes specified herein. Section 5. Resolution No. R-25-0021 is hereby amended to provide that the funding for the Settlement and acquisition of the Alternative Property in an amount not to exceed Eleven Million, Seven Hundred Forty Thousand Dollars ($11,740,000.00) shall be allocated from the Funding Sources, subject to allocations, appropriations and budgetary approval having been previously made or as may be separately required prior to expenditure, and subject to compliance with all Federal, State, and local laws that regulate the use of such funds for said purposes. Section 6. The City Commission hereby declares the City's official intent to issue taxable Miami Forever Affordable Housing Bonds, in one or more series, to the extent permissible under applicable laws, rules, and regulations regarding the Miami Forever Affordable Housing Bonds, and use a portion of the Miami Forever Affordable Housing Bonds in the total amount of Six Million, One Hundred Sixty -Three Thousand, Sixteen Dollars ($6,163,016.00) to reimburse the City for funds advanced by it for expenditures incurred and to be incurred for the purposes stated herein. Section 7. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 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. City of Miami Page 5 of 5 File ID: 17211 (Revision:) Printed on: 2/7/2025