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HomeMy WebLinkAboutAgenda Item Cover PageAGENDA ITEM COVER PAGE File ID: #17577 Resolution Sponsored by: Commissioner Joe Carollo A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ALLOCATING ADDITIONAL FUNDING ON A REIMBURSEMENT BASIS IN AN AMOUNT NOT TO EXCEED SEVEN MILLION AND 00/100 DOLLARS ($7,000,000.00) FROM LEGALLY AVAILABLE FUNDING SOURCES AS FURTHER DESCRIBED HEREIN, FORATOTALALLOCATION NOT TO EXCEED TWELVE MILLION AND 00/100 DOLLARS ($12,000,000.00) TO 8TH STREET PROPERTIES, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), FOR THE AFFORDABLE HOUSING COMPONENTS OF AN 8-STORY, HIGH RISE MIXED USE COMMERCIAL AND RESIDENTIAL COMPLEX PROJECT TO BE LOCATED AT 829 SOUTHWEST 8TH STREET, 845 SOUTHWEST 8TH STREET, AND 847 SOUTHWEST 8TH STREET TO BE KNOWN AS "ESSENCE MIAMI" ("PROJECT"), SUBJECT TO COMPLIANCE WITH THE CITY'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT GUIDELINES, THE RECEIPT BY THE CITY MANAGER OF THE WRITTEN APPROVAL OF THE ADDITIONAL ALLOCATION BY THE CITY'S HOUSING AND COMMERCIAL LOAN COMMITTEE ("HCLC") AND SUBJECT TO THE TERMS, CONDITIONS, AND RESTRICTIONS CONTAINED IN THE HCLC APPROVAL (COLLECTIVELY, "HCLC APPROVAL"), AND ALL FEDERAL, STATE, AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS FOR SAID PURPOSE; SUCH ALLOCATION TO BE IN COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE OF FLORIDA, LOCAL, AND CITY LAWS, RULES, AND REGULATIONS FOR AFFORDABLE HOUSING PROJECTS, INCLUDING BUT NOT LIMITED TO THE CITY'S SEVEN (7) AFFORDABLE HOUSING BONDS PROJECTS STRATEGIES, AND THE MIAMI FOREVER AFFORDABLE HOUSING LIMITED AD VALOREM BONDS (COLLECTIVELY, "LAWS"); SUBJECT TO THE RECEIPT BY THE CITY MANAGER OF THE HCLC APPROVALS; 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 LAWS AND SUBJECT TO THE DEVELOPER FULFILLING ALL OF THE TERMS AND CONDITIONS TO BE SET FORTH IN THE HCLC APPROVALS, IN ORDER TO ALLOCATE THE CITY'S FUNDING TO THE PROJECT; RATIFYING, APPROVING, AND CONFIRMING CERTAIN NECESSARY ACTIONS BY THE CITY MANAGER AND DESIGNATED CITY DEPARTMENTS IN ORDER TO UPDATE THE CAPITAL PLAN, RELEVANT FINANCIAL CONTROLS AND COMPUTER SYSTEMS IN CONNECTION THEREWITH, FOR PROJECT CLOSE-OUTS, AND FOR GRANTS AND OTHER FUNDING SOURCES IN PROGRESS IN CONNECTION HEREWITH; FURTHER APPROVING, AUTHORIZING, AND DIRECTING THE CITY MANAGER TO UNDERTAKE THIS AMENDMENT IN ORDER TO ADD TO AND TO REVISE CAPITAL PROJECTS IN THE CITY'S FISCAL YEAR 2024-2025 MULTI -YEAR CAPITAL PLAN ADOPTED ON SEPTEMBER 7, 2024 PURSUANT TO RESOLUTION NO. R-24-0328 ("ADOPTED CAPITAL PLAN"), AS SUBSEQUENTLY AMENDED, APPROPRIATING FUNDS AS SET FORTH HEREIN, AS APPLICABLE; PROVIDING FOR AN EFFECTIVE DATE. City of Miami Legislation Resolution Enactment Number: R-25-0174 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 17577 Final Action Date:5/8/2025 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ALLOCATING ADDITIONAL FUNDING ON A REIMBURSEMENT BASIS IN AN AMOUNT NOT TO EXCEED SEVEN MILLION AND 00/100 DOLLARS ($7,000,000.00) FROM LEGALLY AVAILABLE FUNDING SOURCES AS FURTHER DESCRIBED HEREIN, FOR A TOTAL ALLOCATION NOT TO EXCEED TWELVE MILLION AND 00/100 DOLLARS ($12,000,000.00) TO 8TH STREET PROPERTIES, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), FOR THE AFFORDABLE HOUSING COMPONENTS OF AN 8-STORY, HIGH RISE MIXED USE COMMERCIAL AND RESIDENTIAL COMPLEX PROJECT TO BE LOCATED AT 829 SOUTHWEST 8TH STREET, 845 SOUTHWEST 8TH STREET, AND 847 SOUTHWEST 8TH STREET TO BE KNOWN AS "ESSENCE MIAMI" ("PROJECT"), SUBJECT TO COMPLIANCE WITH THE CITY'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT GUIDELINES, THE RECEIPT BY THE CITY MANAGER OF THE WRITTEN APPROVAL OF THE ADDITIONAL ALLOCATION BY THE CITY'S HOUSING AND COMMERCIAL LOAN COMMITTEE ("HCLC") AND SUBJECT TO THE TERMS, CONDITIONS, AND RESTRICTIONS CONTAINED IN THE HCLC APPROVAL (COLLECTIVELY, "HCLC APPROVAL"), AND ALL FEDERAL, STATE, AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS FOR SAID PURPOSE; SUCH ALLOCATION TO BE IN COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE OF FLORIDA, LOCAL, AND CITY LAWS, RULES, AND REGULATIONS FOR AFFORDABLE HOUSING PROJECTS, INCLUDING BUT NOT LIMITED TO THE CITY'S SEVEN (7) AFFORDABLE HOUSING BONDS PROJECTS STRATEGIES, AND THE MIAMI FOREVER AFFORDABLE HOUSING LIMITED AD VALOREM BONDS (COLLECTIVELY, "LAWS"); SUBJECT TO THE RECEIPT BY THE CITY MANAGER OF THE HCLC APPROVALS; 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 LAWS AND SUBJECT TO THE DEVELOPER FULFILLING ALL OF THE TERMS AND CONDITIONS TO BE SET FORTH IN THE HCLC APPROVALS, IN ORDER TO ALLOCATE THE CITY'S FUNDING TO THE PROJECT; RATIFYING, APPROVING, AND CONFIRMING CERTAIN NECESSARY ACTIONS BY THE CITY MANAGER AND DESIGNATED CITY DEPARTMENTS IN ORDER TO UPDATE THE CAPITAL PLAN, RELEVANT FINANCIAL CONTROLS AND COMPUTER SYSTEMS IN CONNECTION THEREWITH, FOR PROJECT CLOSE-OUTS, AND FOR GRANTS AND OTHER FUNDING SOURCES IN PROGRESS IN CONNECTION HEREWITH; FURTHER APPROVING, AUTHORIZING, AND DIRECTING THE CITY MANAGER TO UNDERTAKE THIS AMENDMENT IN ORDER TO ADD TO AND TO REVISE CAPITAL PROJECTS IN THE CITY'S FISCAL YEAR 2024-2025 MULTI -YEAR CAPITAL PLAN ADOPTED ON SEPTEMBER 7, 2024 PURSUANT TO RESOLUTION NO. R-24-0328 ("ADOPTED CAPITAL PLAN"), AS SUBSEQUENTLY AMENDED, APPROPRIATING FUNDS AS SET FORTH HEREIN, AS APPLICABLE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, 8th Street Properties, LLC, a Florida Limited Liability Company ("Developer), is developing the proposed mixed -use development known as Essence Miami which will be located at 829 Southwest 8th Street, 845 Southwest 8th Street, and 847 Southwest 8th Street and will provide no fewer than eighty-eight (88) affordable and/or workforce rental units in District 3 ("Project"); and WHEREAS, on June 10, 2021, pursuant to Resolution No. R-21-0222, the City Commission allocated an amount not to exceed Five Million and 00/100 Dollars in Miami Forever Affordable Housing Limited Ad Valorem Bonds ($5,000,000.00) to the development of the affordable housing components of the Project, subject to any and all terms, requirements, and conditions to be set forth by the City of Miami ("City") Housing and Commercial Loan Committee ("HCLC") in its memoranda; and WHEREAS, on July 30, 2021, HCLC approved the Project and established the Project's terms, requirements, conditions, and affordability requirements; and WHEREAS, on September 23, 2021, pursuant to Resolution No. R-21-0391, the City Commission approved the terms, conditions, and affordability requirements for the Project as set forth by HCLC; and WHEREAS, on April 27, 2022, the Developer executed loan documents with the City for the Five Million and 00/100 Dollars ($5,000,000.00) of Miami Forever Affordable Housing Limited Ad Valorem Bonds; and WHEREAS, on September 19, 2024, the Developer submitted a letter to the City's Department of Housing and Community Development requesting an extension of all of the Project's benchmarks and for an update to the Project budget ("Extension Request"); and WHEREAS, on November 15, 2024, HCLC approved the Developer's Extension Request; and WHEREAS, pursuant to the approved Project terms, conditions, and affordability requirements, the Project's total eighty-eight (88) affordable and/or workforce rental units will consist of fifty-seven (57) one -bedroom, one -bath units, and thirty-one (31) two - bedroom, one -bathroom units; and WHEREAS, pursuant to the approved Project terms, conditions, and affordability requirements, eighteen (18) of the Project's total eighty-eight (88) rental units will be restricted for households with incomes at or below sixty percent (60%) of median income as determined by Florida Housing Finance Corporation ("FHFC"), with adjustments and certain exceptions as provided by FHFC ("AMI"), and seventy (70) of the Project's total eighty-eight (88) rental units will be restricted for households with incomes at or below one hundred percent (100%) AMI; and WHEREAS, due to inflation and significant increases in construction materials, the Developer has requested Seven Million and 00/100 Dollars ($7,000,000.00) in additional funding to be able to complete the Project ("Additional Funding"), attached and incorporated as Exhibit "A;" and WHEREAS, the City Manager recommends and the City Commission finds that it is in the City's best interest to allocate additional funding to the Developer for the Project in an amount not to exceed Seven Million and 00/100 Dollars ($7,000,000.00) in additional funding for a total allocation to the Developer for the Project in an amount not to exceed Twelve Million and 00/100 Dollars ($12,000,000.00); and WHEREAS, the City has identified that the Additional Funding for the affordable housing component of the Project will consist of the following funding sources: Five Million, Three Hundred Ninety Thousand and 00/100 Dollars $5,390,000 from the District 3 Share of Miami Forever Affordable Housing Limited Ad Valorem Bonds, and One Million, Six Hundred Ten Thousand and 00/100 Dollars ($1,610,000.00) from the District 3 Share of Public Benefit Trust Funding; and WHEREAS, at the time of the Meeting, the Additional Funding request for the Project had not yet been considered by HCLC, the City Commission's approval is subject to the approval of the Additional Funding request by HCLC and the Developer fulfilling, in a timely manner, any and all terms, requirements, and conditions to be set forth by HCLC in its memoranda and fulfilling all requirements in order to be in compliance with the Bond Strategies ("HCLC Approvals"); and WHEREAS, the City Commission expects to issue taxable and tax-exempt limited ad valorem bonds payable from ad valorem taxes provided that the capital projects debt millage does not exceed the rate of 0.5935 mills in accordance with the November 7, 2017, bond referendum approved by the voters, in order to, among other things, reimburse the City of Miami ("City") for funds advanced by the City for certain expenses incurred with respect to capital projects to be undertaken by the City to improve affordable housing within the City's limits, all as indicated in a separate Resolution, the related City Manager's Memorandum, and the seven (7) Affordable Housing Bonds Projects Strategies ("Bonds Strategies"), inclusive of the affordable housing components of the Project; and WHEREAS, such allocations shall be in compliance with all applicable Federal, State of Florida, local, and City laws, rules, regulations, and procedures, including, but not limited to, the Bonds Strategies, the Miami Forever Bond Validation Order, the Charter of the City of Miami, Florida, as amended ("City Charter"), and the Code of the City of Miami, Florida, as amended ("City Code") (collectively, "Laws"); NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. Subject to the receipt by the City Manager of the HCLC Approvals, which shall be consistent with the City Commission approval, the City Commission hereby authorizes' and directs the City Manager to allocate additional funding, on a reimbursement basis, in an amount not to exceed Seven Million Dollars ($7,000,000.00) from the legally available funding sources identified in this Resolution for the affordable housing components of the Project being developed by the Developer provided that the Developer fulfills any and all terms and conditions to be set forth in the HCLC Approvals, which shall be consistent with the City Commission approval, and subject to compliance with all Laws, for a total allocation of Twelve Million and 00/100 Dollars ($12,000,000.00) to the Developer for the affordable housing components of the Project. Section 3. Subject to the receipt by the City Manager of the HCLC Approvals, 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 Laws and subject to the Developer fulfilling all of 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. the terms and conditions to be set forth in the HCLC Approvals, in order to allocate the City's Miami Forever Bond funding to the Project. Section 4. The City Commission hereby ratifies, approves, and confirms certain necessary actions by the City Manager and designated City departments in order to update the capital plan, relevant financial controls and computer systems in connection therewith, for project close-outs, and for grants and other funding sources in progress in connection herewith. Section 5. The City Manager is further authorized and directed to undertake a capital plan amendment in order to add to and to revise capital projects in the City's Adopted Capital Plan, as amended appropriating funds as set forth herein, as applicable. Section 6. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: g Wy j ng III, C y ttor -y 4/29/2025 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.