HomeMy WebLinkAbout6706 Back-UpWe at 1767 NW 3rd Avenue Apartments dba "0 Town Apts" would like to thank the entire CRA
community for giving us the opportunity to partner on this visionary project of the
Transformation and Beautification of Overtown. The grant from the CRA was given as an
incentive to purchase and refurbish the subject property to building standards for affordable
housing.
We embarked on the project with enthusiasm which unfortunately was riddled with several
challenges beyond our control.
On our very first day of business after closing a condemn order was attached to the subject
property. This was totally unforeseen on our part. We had all 18 apartments filled with 40
vagrants and were unable to inspect the building properly. We therefore relied on the
credibility of our seller. Unfortunately the removal of all 40 hostile squatters was time
consuming, costly and a huge undertaking.
We now had a building that literally had to be rebuilt in its entirety, inside and out, other than
the shell of the building. Code requirements for a condemned building are basically a rebuild.
The entire building needed to be gutted. Over 80 large containers of debris needed to be taken
out. This cost close to $70,000 for demolition only. Alf 2x4's trusses, columns & straps needed
to be removed and replaced. All walls and ceilings needed R-19 & R-5.1 insulation to be
installed throughout the building. These unforeseen costs were expenses that were not
factored in our budget. The entire electrical system was obsolete and had to be totally replaced
as it was necessary to bring the electric to code. The cost to bring the electric up to code was
$319,202, 7.5 times the cost of what the allowance was appropriated by the CRA. The bill we
had submitted for $180,000 just for framings had not been factored in as well as the new
construction and the costs involved to bring the building to code. We are currently at a cost of
(3) times our budget. Additionally we needed to dig 10 feet underground to construct a
drainage system to ensure proper drainage of water as the area gets totally flooded. We have
experienced as much as 24 inches of rainfall sitting in our parking area. This drainage system
was at a cost of over $35,000 that was not factored in the original CRA Budget, this was costly
but necessary. (see photos)
However, this did not deter "0 Town Apts" from investing and financing the project. Honoring
our commitment as it is our desire to build an 18 unit apartment building for affordable housing
that its occupants are proud to make their home while working with the CRA and the
community of Overtown in the best way possible to restore the beauty of Overtown. It is now
obvious to us that the CRA like ourselves were not able to do the due diligence necessary for an
inspection of the property and therefore was unable to properly asses the magnitude of the
rebuild. We are asking the CRA assistance in light of the numerous unforeseen complications
with this project. This has equated into a great loss of time and money. We have spent
approximately three times what we had anticipated and approximately a year overrun.
Enclosed are before and after pictures substantiating our predicament.
We were unable to work on the building for an additional (7) seven months due to the washing
facility for the tenants required by the City of Miami Building Dept that requested an `extension
to the building' that would serve three washers and three dryers for the entire building (one set
per floor). The zoning department for the City of Miami denied our submitted plan, claiming
that once an `extension to the building' has been submitted you had to go by the 2012 code.
Which meant there would be additional parking spaces and handicapped required. As it is, we
have 18 spaces for 18 units, and by building the extension for the washer and dryers, we would
lose three spaces, leaving us with only 15 spaces. The parking area would now be short
approximately five parking spaces according to code and zoning would not approve the plan.
The plan was on standby for about seven months in the city of Miami with no movement. 1 had
requested on five different occasions a meeting with the City of Miami, building and zoning
which they declined. I spoke to Brian Zeltsman at the CRA and informed him of my problem and
my dilemma. If our company did not decide to put a washer and dryer (approximately $75,000)
in every apartment this project would not have gotten off the ground.
We also had to put smoke and fire alarms in the development which was not included in the
budget. This was an additional cost of over $40,000. Included on the next page (exhibit b) is a
list of actual costs. This shows the expenses we incurred cost close to three times the original
estimate so far. We are incurring additional costs every day as we complete the project.
We expect to complete the project on or before October 25th 2019. The CRA can appreciate
that despite the numerous setbacks, we have honored our commitment to the cause of
transforming Overtown as we believe in your vision. We are here for the CRA and the
community.
We have offered the CRA to place nine families in "0 Town Apts" complex for affordable
housing at an attractive rate of $1000 per 2 bedroom unit, which is a $450 savings per month
below the going rate. This is a savings to the CRA of $97,200 over a 24 month period.
The favorable feedback from the community motivates us and strengthens our commitment to
the neighborhood.
We would appreciate your help on the current project under these circumstances and look
forward to a mutually beneficial business relationship with the CRA on this and future projects.
Martin Floman
CEO
Exhibit A
Upgrades that were done are as follows:
1. Central air conditioning to all 18 units
2. Washer/Dryer to all 18 units (we were unable to build washing facility due to
condemned order)
3. Porcelain tile throughout the homes
4. Fiberglass hurricane windows with 30-year warranty
5. Parking spot for each unit
6. Stainless steel appliances
7. Therapeutic shower head
8. Gated community
9. Electric gates
10. Basic cable with all cable wiring included
Exhibit B
Category
Cost/Value
Actual Cost
Demolition
$ 40,000
$ 70,632
Metals/Railings
$ 23,000
$ 18,015
Carpentry
$ 45,000
$ 151,040
Bathroom Remodel
$ 36,000
$ 32,273
Stucco/Plaster
$ 15,000
$ 19,947
Doors/Windows
$ 70,000
$ 108,452
Framing/Drywall
$ 42,000
$ 183,965
Roof
$ 10,000
$ 9,362
Painting
$ 25,000
$ 59,037
Flooring
$ 30,000
$ 61,918
HVAC
$ 38,500
$ 42,666
Plumbing
$ 22,500
$ 93,099
Electrical
$ 43,000
$ 319,202
Perimeter Fence
$ 10,000
$ 17,105
Concrete Parking/Re-Striping
$ 15,000
$ 30,358
Landscape
$ 8,000
$ 7,102
Appliances
$ 27,000
$ 53,787
Contractor Fee
$ 20,000
$ 21,957
Kitchen
$ -
$ 29,383
Supplies
$ -
$ 59,223
Labor
$ -
$ 230,794
Soft Costs
$ 65,000
$ 125,197
Total
$ 585,000
$ 1,744,513