HomeMy WebLinkAboutCRA-R-20-0018Southeast Overtown/Park West
Community Redevelopment Agency
Legislation
CRA Resolution: CRA-R-20-0018
819 NW 2"d Ave
3rd Floor
Miami, FL 33136
www.seopwcra.com
File Number: 8191 Final Action Date:11/16/2020
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST
OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, WITH
ATTACHMENT(S), RATIFYING THE EIGHTH AMENDMENT TO THE
DEVELOPMENT AGREEMENT BY AND BETWEEN THE SOUTHEAST
OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AND
DOWNTOWN RETAIL ASSOCIATES, LLC, ATTACHED AND INCORPORATED
HEREIN AS EXHIBIT "A" FOR THE DISPOSITION AND DEVELOPMENT OF
BLOCK 55; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ANY
AND ALL DOCUMENTS REQUIRED TO CONSUMMATE THE TRANSACTION.
WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") is
a community redevelopment agency created pursuant to Chapter 163, Florida Statutes, and is responsible
for carrying out community redevelopment activities and projects within its Redevelopment Area in
accordance with the 2009 Southeast Overtown/Park West Community Redevelopment Plan ("Plan"); and
WHEREAS, Florida Statutes, Section 163.370(2)(e)(4) of the Community
Redevelopment Act authorizes the disposal of real property; and
WHEREAS, Section 2, Goal 3 on page 11 of the Plan lists the "creat[ion of] infill
housing, diversity in housing types, and retaining affordable housing, as a stated redevelopment
goal; and
WHEREAS, Section 2, Goal 4 and 6 on page 11 of the Plan lists the "creat[ion of] jobs
within the community" and "improving quality of life for residents" as stated redevelopment
goals; and
WHEREAS, Section 2, Principle 4 on page 14 of the Plan provides that "[t]he
neighborhood...retain access to affordable housing..." as a stated redevelopment principle; and
WHEREAS, Section 2, Principle 4 on page 14 of the Plan provides that "employment
opportunities be made available to existing residents..." as a stated redevelopment principle; and
WHEREAS, Section 2, Principle 6 on page 15 of the Plan further provides that in order to
"address and improve the neighborhood economy and expand economic opportunities of present
and future residents and businesses [,] [it] is necessary to] support and enhance existing
businesses and... attract new businesses that provide needed services and economic
opportunities..." as a stated redevelopment principle; and
WHEREAS, on October 1, 2018 the Block 55 Development Agreement was executed,
which was amended by Amendment dated November 21, 2018, by Second Amendment dated
April 17, 2019, by the Third Amendment dated September 26, 2019, by the Fourth Amendment
City of Miami Page 1 of 3 File ID: 8191 (Revision:) Printed On: 9/5/2025
File ID: 8191 Enactment Number: CRA-R-20-0018
dated December 20, 2019, by the Fifth Amendment dated March 18, 2020, by the Sixth
Amendment dated March 31, 2020, and by the Seventh Amendment dated June 1, 2020
(collectively, the "Development Agreement"), all of which have been previously approved by the
CRA Board of Commissioners; and
WHEREAS, the Eighth Amendment to the Development Agreement attached hereto and
incorporated herein as Exhibit "A" was executed as of September 2, 2020, and contains, in part,
the following modifications:
• Affordable Housing Inventory Increase from 20% to 100%: Block 55 will consist of not less than
578 residential units, all of which will be affordable, with fifty percent (50%) of the units
designated for individuals or families earning up to fifty percent (50%) of the Miami -Dade
County Area Median Income ("AMP') and the balance of the remaining units designated for
individuals or families earning more than fifty percent (50%) of AMI but not exceeding eighty
percent (80%) of AMI.
• Assignment Prior to Closing: The Developer may form a new limited liability company to own
the Property ("Property Owner") and a new limited liability company to be the sole member and
owner of the Property Owner ("Member") and a new limited liability company to be the sole
member and owner of Member ("Holding") provided that Property Owner is one hundred percent
(100%) owned by Member and Member is one hundred percent (100%) owned by Holding. The
CRA agrees to assign the Development Agreement and convey the Property to the Property
Owner at closing provided that (a) the Holding is the sole member and owner of Member, (b)
Member is the sole member and owner of Property Owner and (c) Michael Swerdlow or an entity
he controls retains all decision making with respect to Holding, Member and Property Owner,
except for certain major decisions.
• Closing Payment and Deferred Purchase Price: The Purchase Price for Block 55 was Eighteen
Million Dollars ($18,000,000). In addition, the Developer agreed to pay the CRA Five Hundred
Thousand Dollars ($500,000) in extension fees not credited to the Purchase Price. Prior to
Closing the Developer paid to the CRA a total of One Million Four Hundred Fifty Thousand
Dollars ($1,450,000) leaving a total due to the CRA at closing Seventeen Million Fifty Thousand
Dollars ($17,050,000). The Developer paid the CRA Ten Million Fifty Thousand Dollars
($10,050,000) at closing (the "Closing Payment") and the CRA took back a Note for Seven
Million Dollars ($7,000,000) (the "Deferred Purchase Price Note") due on May 1, 2021. The
Deferred Purchase Price Note was personally guaranteed by Michael Swerdlow and Stephen
Garchik and secured by their interest in the Project. The Deferred Purchase Price Note shall be
forgiven, subject to Board approval, if the Construction Conditions Precedent are satisfied or
waived by the Executive Director of the CRA and Vertical Construction occurs on or before
September 2, 2021.
• Grant Agreement: The CRA agreed, subject to Board approval, to make a grant to the Developer
in the amount of Five Hundred Thousand Dollars ($500,000) upon the later to occur of (i) ten
(10) days after the Construction Conditions Precedent have been satisfied or waived by the
Executive Director and Vertical Construction occurs, or (ii) February 1, 2021;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE
SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are
adopted by reference and incorporated herein as if fully set forth in this Section.
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File ID: 8191 Enactment Number: CRA-R-20-0018
Section 2. The Board of Commissioners hereby ratifies the Eighth Amendment to the
Development Agreement between the Southeast Overtown/Park West Community
Redevelopment Agency and Downtown Retail Associations, LLC for the disposition and
development of Block 55, as attached hereto and incorporated herein as Exhibit "A", and ratifies
and reaffirms the terms of the Development Agreement.
Section 3. The Executive Director is authorized to execute any and all documents
required to consummate the transaction.
Section 4. This Resolution shall become effective immediately upon its adoption.
APPROVED AS TO FORM AND LEGAL SUFFICIENCY:
Chanel H. Jefferson, t ff Counsel 11/11/2020
,
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