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HomeMy WebLinkAboutSubstitution Memo from City AttorneyCITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: George K. Wysong III, City Attorney'/Gwyzzr DATE: February 26, 2025 RE: Substitution — PH.11 on the February 26, 2025, City Commission Meeting: Requesting authorization to allocate seven million two hundred thousand dollars ($7,200,000.00) in Miami For Everyone funds to Collaborative Development Corporation, a Florida Not For Profit Corporation, to acquire and construct a new affordable housing development to be known as 3710 Grove Landing Community Housing Development File No.: 16840 Item PH.11 on the February 27, 2025 City Commission Meeting Agenda, proposes to allocate funding as a loan in an amount not to exceed seven million two hundred thousand dollars ($7,200,000.00) from the District 2's share of Miami For Everyone funding to Collaborative Development Corporation, a Florida Not For Profit Corporation, for the developer to acquire a parcel on which the developer will cause to be constructed a new mixed -use affordable housing development to be known as 3710 Grove Landing Community Housing Development ("Project") that will contain no fewer than forty-eight (48) city assisted residential rental units for eligible residents whose annual income is equal to or less than ninety-five percent (95%) of area median income ("AMI"), all subject to the terms, conditions and restriction contained herein and in the HCLC approval and all federal, state, and local laws that regulate the use of such for said purpose. The Resolution is being substituted to modify the project from a residential rental project to a homeownership condo project, to increase the number of City Assisted Units from forty-eight (48) to sixty-three (63) units, as well as to include a minimum area median income percentage for eligible residents between 60% and 95% area median income that was not included at the time of publishing. cc. Arthur Noriega V, City Manager c=) Marie Gouin, Director, Office of Management & Budget `'" Miriam M. Santana, Agenda Coordinator r- i; IlaByo Subs-fyivi-.0 nYteMo �aM 5-iN)/Lekv-1 City of Miami Resolution Legislation City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 16840 Final Action Date: 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 (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE CITY MANAGER'S FINDING(S), ATTACHED AND INCORPORATED AS EXHIBIT "A," 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 AS A LOAN IN AN AMOUNT NOT TO EXCEED SEVEN MILLION TWO HUNDRED THOUSAND AND 00/100 DOLLARS ($7,200,000.00) FROM THE DISTRICT 2 COMMISSIONER'S SHARE OF THE CITY'S MIAMI FOR EVERYONE ("MFE") PROGRAM ("GRANT"), TO COLLABORATIVE DEVELOPMENT CORPORATION, A FLORIDA NOT FOR PROFIT CORPORATION ("DEVELOPER"), FOR THE DEVELOPER TO ACQUIRE ONE (1) OR MORE OF THE PARCELS DESCRIBED IN EXHIBIT "C," ATTACHED AND INCORPORATED, ON WHICH THE DEVELOPER WILL CAUSE TO BE CONSTRUCTED A NEW MIXED -USE AFFORDABLE HOUSING DEVELOPMENT TO BE KNOWN AS 3710 GROVE LANDING COMMUNITY HOUSING DEVELOPMENT ("PROJECT') THAT WILL CONTAIN NO FEWER THAN SIXTY THREE (63) CITY -'°-i r ASSISTED RESIDENTIAL HOMEOWNERSHIP CONDO UNITS FOR ELIGIBLE �'► RESIDENTS WHOSE ANNUAL INCOME IS BETWEEN SIXTY PERCENT (60%) AND r*-t NINETY-FIVE PERCENT (95%) OF AREA MEDIAN INCOME ("AMI") AS PUBLISHED E� ANNUALLY BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, 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, CONDITIOi a? "rl AND RESTRICTIONS CONTAINED HEREIN AND IN THE HCLC APPROVAL; FURTHER. AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY ANETALL`' 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 FUNDS, AND SUBJECT TO THE PROJECT RECEIVING HCLC APPROVAL AND THE DEVELOPER FULFILLING, IN A TIMELY MANNER, ANY AND ALL TERMS, REQUIREMENTS, AND CONDITIONS SET FORTH IN THIS RESOLUTION AND THE HCLC APPROVAL WHICH MAY BE IN ADDITION TO THE REQUIREMENTS CONTAINED IN THIS RESOLUTION, IN ORDER TO ALLOCATE THE CITY'S MFE FUNDING TO THE PROJECT IN THE FORM OF A 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 City of Miami Page of File ID: (Revision:) Printed On: File ID: Enactment Number: WHEREAS, Collaborative Development Corporation is a Florida Not For Profit Corporation whose mission is to plan, coordinate, and execute neighborhood revitalization projects, expand affordable housing availability, and increase culture, tourism, business and employment opportunities in impoverished and under -serviced communities ("Developer"); and WHEREAS, the Developer submitted a grant application, attached and incorporated as Exhibit "B," to the City of Miami ("City") for MFE Program funds in order to purchase land for the proposed mixed -use affordable housing development known as 3710 Grove Landing Community Housing Development ("Project"); and WHEREAS, the proposed Project will be located at approximately 3710 Grand Avenue, and 3735 Washington Avenue in Miami, Florida, which includes several properties the Developer is currently negotiating to purchase and which will provide no fewer than (63) City homeownership condo units ("City -Assisted Units") upon purchase and development, all as identified in Exhibit "C," attached and incorporated (collectively, "Property"); and WHEREAS, the Developer proposes to develop the mixed -use property inclusive of affordable housing (low to extremely low income housing), live-work/workforce housing, commercial/retail space, and community space for cultural opportunities; and WHEREAS, in exchange for the City providing an amount not to exceed Seven Million, Two Hundred Thousand and 00/100 Dollars ($7,200,000.00) from District 2's share of MFE funds ("Funds") in the form of a loan for the acquisition of the Property, or portions thereof, that the Developer will construct and cause the City -Assisted Units to be occupied by a mixed composition of eligible residents whose income is between sixty percent and ninety-five percent (95%) 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 less than thirty (30) years commencing on the date on which the Project has obtained all of the required Certificates of Occupancy (or Temporary Certificates of Occupancy, if applicable) and all City Assisted Units have been leased to Eligible Residents; and WHEREAS, the City's Housing and Commercial Loan Committee ("HCLC") has not yet reviewed a completed proposal for the Project in order for the Project to receive a loan of MFE 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, this loan is subject to City's MFE funds remaining in escrow or with the pity until the closing date of the acquisition of the Property and the City shall record or cause tQ be recorded a declaration of restrictive covenants that shall run with the land and shall§eli forttrthe affordability restrictions of the Project ("Covenant"), which Covenant shall have serilbrWJienc priority to any and all liens associated with the financing related to the Project; and t f:, -1 o WHEREAS, the Developer has requested and the City Manager has determined in his memorandum, attached and incorporated as Exhibit "A," that it is in the best interest of the City to waive competitive bidding and that it is in the best interest of the City to allocate, in the form of a loan, an amount not to exceed Seven Million, Two Hundred Thousand and 00/100 Dollars ($7,200,000.00) in MFE funds for the land acquisition of the Project being developed by the Developer provided that the Developer fulfills all of the terms and conditions set forth in this Resolution and the HCLC Approval; and City of Miami Page of File ID: (Revision:) Printed on: 2/26/2025 File ID: Enactment Number: WHEREAS, such loan shall be in compliance with all applicable Federal, State of Florida, local, and City laws, rules, and regulations for affordable housing projects, (collectively, "Laws"); 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 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 "A," that competitive negotiation methods and procedures are not practicable or advantageous for the City's provision of the Funds for the Program 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 District 2 Commissioner's share of the City's MFE Program funds to Developer for the Project, subject to the Project receiving 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 Project receiving HCLC Approval and the Developer fulfilling, in a timely manner, any and all terms, requirements, and conditions set forth in this Resolution and the HCLC Approval which may be in addition to the requirements contained in this Resolution. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 ) C) r- 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. 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 of File ID: (Revision:) Printed on: 2/26/2025