HomeMy WebLinkAboutExhibit ACommissioner Carollo:
3500 Pan American Dr.
Miami, Fi. 33133
JcarolloPmiamigov.com
WortizCulmiamigov.conn
You are familiar with our project, Essence Mia. We are "permitted" BD21019029001
to construct an affordable project together with the City of Miami located at 845-
849 SW 8th Street, where we will construct 88 affordable and workforce units. The
breakdown consists of 20% of the units at 600/0 AMI and the remaining 80% at
1000/0 AMI, making the project 1000/0 affordable, with an average AMI of 90%. This
project will provide housing to essential personnel from the City of Miami, including
firefighters, police officers, nurses, and teachers.
We are approved for a $5 million grant in August 2021 which was recently renewed.
Based an our Miami Forever Bond of $5,000,000, the contribution per unit was
calculated at $56,818.18. However, our latest estimate, considering inflation and the
significant increase in material costs, now stands at $27,920,000—an increase of
118%. This substantial gap is a financial burden that we cannot absorb alone, and
we respectfully request your assistance in bridging this shortfall.
Recent developments in construction pricing further underscore the need for
additional funding. A recent analysis by the Associated Builders and Contractors,
based on U.S. Bureau of Labor Statistics' Producer Price Index data, shows that
construction input prices increased by 0.6% in February alone. Certain key
materials have experienced even steeper increases: iron and steel rose by 3.9%,
softwood lumber by 2.8%, and steel mill products by 2.7%. These increases are
largely attributed to newly imposed tariffs, which have provided domestic
producers with increased pricing power, Tariffs on steel and aluminum imports,
currently set at 25%, have further escalated costs, significantly impacting
construction projects across the country.
This rising cost trend is widely recognized by both federal and local agencies. The
County has a program to offset inflation, interest rate increases and higher
construction costs for its affordable housing projects. The City has recently realized
the cost increases with the most recent PHI 1 grant (dated 2/27/25) for the Miami
for Everyone Program allocated $7,200,000 to support 48 affordable units at 3710
Grand Ave. and 3735 Washington Ave., equating to a cost of approximately
$150,000 per unit. Another similar allocation for 3710 Grand Ave. in 7/27/23
provided $3,500,000 for 23 units, bringing the per -unit funding to $152,000, These
figures reflect the increasing costs of construction and the adjustments being made
in grant funding to account for them.
Given these precedents and the undeniable rise in construction costs due to tariffs,
supply chain disruptions, and market inflation, we request an increase in our
funding to bring our per -unit allocation closer to the $150,000 benchmark that
other affordable housing projects are receiving. Additionally, we are now fully
prepared to begin construction, as our building permit has been issued, and we are
set to break ground. We are requesting an additional $7,000,000 in funding, which,
combined with the existing $5,000,000, results in an average per -unit funding of
$136,370.00. This increase is crucial to ensuring the financial feasibility of our
project while maintaining affordability for Miami's essential workforce.
Attached, you will find images of the project as well as a detailed breakdown of our
updated cost estimates. We appreciate your consideration and look forward to your
support in making this critical project a reality.
Cost at Start
January
2025
Difference
Difference
1.General Conditions
$829,574
$2,566,249
4736,675
209%
2.Sitework
$486,070
$820,019
3333,949
69%
3.Concrete
$4,272,269
$7,981,742
$3,709,473
87%
4.Masonry
$0
$0
$0
5,Metals
$321,551
$525,316
$203,765
63%
6.Carpentry
$332,420
$599,537
6267,117
80%
7.Molsture)Waterproofing
$354,869
$844,041
$289,172
81%
8.Windows & Doors
$609,231
$1,831,140
$1,021,909
168%
9.Finishes
$2,226,300
$4,383,225
52,156,925
97%
10.Specialties
$269,050
$421,416
$152,369
57%
11.Equipment
$250,000
$387,757
$137,757
55%
12.Furnishing
$32,100
$90,800
$68,600
182%
13.Special Construction
$0
$0
$0
14.Conveying systems
$353,350
$790,000
$438,650
124%
15.Mechanicai
$1,232,750
$3,676,377
$2,443,627
198%
16,Electrical
$1,224,000
$3,402,581
$2,176,561
178%
Total
$12,793,534
$27,920,000
$15,126,466
118%
Sincerely,
Nuri Dorra
8th Street Properties LLC
Applicant:
BUILDING 0EPARTMENT
DORRA,NUR1
BUILDING PERMIT
Permit Number: BD21019029001B001
Contractor: Ceiba! Construction LLC/ Sob Address:
LOSA, JOSE ANTONIO JR
Certificate Required; CO
Additional Property Info:
84S SW 8 ST
Folio Number: 141380032361
Date Issued: March/31/2025
Governing code: FBC 7th Edition (2020)
Job Category: NEW CONSTRUCTION
Job Description;
MULTI -FAMILY (RENTAL)
STRUCTURAL SUPPORT
FOR EQUIPMENT
PARKING GARAGE -
MULTIPLE FLOORS
E$timated Cost: $29,148,476.00
Total Pernlit Processing Time: $99 days 24 hrs
Time with Jurisdiction:
Time with Applicant;
NOTICE: In addition to the requirements of this
permit, there may be additional restrictions
applicable to this property that may be found
in the public records of this county, and there
may be additional permits required from other
governmental entities such as water
management districts, state agencies, or
federal agencies.
NOTICE: This card MUST BE DISPLAYED
PROMINENTLY at the front entrance of the
premises (or other location acceptable to the
building official) for the duration of the work in
progress under this permit.
WARNING TO OWNER:
YOUR FAILURE TO RECORD A NOTICE OF
COMMENCEMENT MAY RESULT IN
YOUR PAYING TWICE FOR THE
IMPROVEMENTS TO YOUR PROPERTY. A
NOTICE OF COMMENCEMENT MUST BE
RECORDED AND POSTED ON THE 5013
SITE BEFORE THE FIRST INSPECTION. IF
YOU INTEND TO OBTAIN FINANCING,
YOU SHOULD CONSULT WITH YOUR
LENDER OR AN ATTORNEY BEFORE
RECORDING YOUR NOTICE OF
COMMENCEMENT.