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HomeMy WebLinkAboutExhibit BCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Arthur Noriega V DATE: February 11, 2025 City Manager SUBJECT: District 4 GOB Allocation of $5,700,000 to 5350 Flagler Street, LLC FROM: Victor Turner Director a4.4 MIAMI FOREVER GENERAL OBLIGATION BOND PROGRAM On November 7th, 2017, the registered voters of the City approved, by referendum ballot, for the City to issue General Obligation Bonds in an aggregate principal amount not to exceed $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") to fund capital projects to reduce flooding risks, improve storm water infrastructure, enhance public safety, improve affordable housing, economic development, parks, cultural facilities, streets, and infrastructure. On February 14, 2019, the City Commission validated Resolution R-19-0062 for the aggregate issuance of the bond. BACKGROUND The City Commission passed Resolution R-23-0519 on November 16th, 2023, funding the acquisition of the property located on 5350 West Flagler Street for use as development site of the "Flagler Villas Phase 2" project. On February 15, 2024, the City acquired the Parcel. On the February 27, 2025 City Commission agenda, the City proposes to fund a total of Five Million Seven Hundred Thousand Dollars ($5,700,000) to fund the development. Related Urban has therefore requested GOB funds in the amount of $5,700,000 in the form of a loan. The funds will be utilized for both pre -development and hard construction costs. The development will house a minimum of 98 households whose income is equal to or less than thirty percent (30%) of area median income ("AMI"). 5350 FLAGLER STREET, LLC AND RELATED URBAN 5350 Flagler Street, LLC is a Florida limited liability company that was created for the development of affordable housing. Related Urban (RUDG, LLC) is the parent company. Related Urban, led by Mr. Albert Milo, is a vertically integrated organization with extensive experience in the development of affordable housing. Mr. Milo has developed, rehabilitated, and managed multiple affordable housing developments using tax-exempt bonds and low-income housing tax credits. Through Mr. Milo's leadership and more than 35 years of experience, Related Urban has rehabilitated and built over 1,200 housing units throughout Florida. The Flagler Villas Phase 2 project will be the new construction of a 8-story mid -rise multifamily building consisting of a total of 98 units located at 5350 W. Flagler Street in the Flagami neighborhood. Approximately (90) units will be one-bedroom/one-bathroom and (8) units will be two-bedroom/one-bathroom targeting elderly households at or below 30% of the area median income. RECOMMENDATION The City's District 4 Commissioner ("Commissioner") has reviewed the Flagler Villas Phase 2 project and wishes to provide GOB funds from the Commissioner's share in an amount not to exceed Five Million Seven Hundred Thousand Dollars ($5,700,000) in the form of a loan to 5350 Flagler Street, LLC. The exact terms of the loan will be dictated by the final, HCLC Approval expected to be received on March 25, 2025. In light of the above, approval of a waiver of the formal requirements of competitive sealed bidding methods as not being practicable or advantageous to the City as set forth in the City Code of Ordinances, as amended, specifically Section 18-85 (A), and the affirmation of these written findings and the forwarding of the same to the City Commission for ratification by a fourth -fifths vote is respectfully requested. LDS at} 4PPROVED / DISAPPROVED DocuSigned by: tivfLui Naviur, 850CF6C372DD42A... Arthur Noriega V City Manager February 13, 2025 1 11:27:05 EST