Loading...
HomeMy WebLinkAboutOMNI CRA 2021-09-13 Agenda PacketCity of Miami 3500 Pan American Drive Miami, FL 33133 www.miamigov.com 4110 Omni C R A Meeting Agenda Monday, September 13, 2021 9:30 AM (OR THEREAFTER) City Hall 3500 Pan American Drive Miami, FL 33133 OMNI Community Redevelopment Agency Ken Russell, Chair, District Two Joe Carollo, Vice Chair, District Three Alex Diaz de la Portilla, Board Member, District, One Manolo Reyes, Board Member, District Four Jeffrey Watson, Board Member, District Five OMNI CRA OFFICE ADDRESS: 1401 N. Miami Avenue, 2nd Floor, Miami 33136 Phone: (305) 679-6868 www.miamicra.com OMNI Community Redevelopment Agency Meeting Agenda September 13, 2021 CALL TO ORDER OMNI CRA RESOLUTION(S) 1. OMNI CRA RESOLUTION 10629 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), APPROVING AND ADOPTING THE CRA'S PROPOSED GENERAL OPERATING BUDGET AND TAX INCREMENT FUND BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT A COPY OF THE BUDGET TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. 2. OMNI CRA RESOLUTION 10648 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("OMNI CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY AGREEMENTS PURSUANT TO SECTION 112.24, FLORIDA STATUTES, WITH THE WEST GROVE COMMUNITY REDEVELOPMENT AGENCY ("WEST GROVE CRA"), ALL IN FORMS ACCEPTABLE TO THE GENERAL COUNSEL, WITH RESPECT TO SERVICES PREVIOUSLY PROVIDED BY THE OMNI CRA'S STAFF ON BEHALF OF THE WEST GROVE CRA AND TO AUTHORIZE THE OMNI CRA'S STAFF TO PROVIDE ONGOING ADMINISTRATIVE SERVICES, SUPPORT, AND FUNDING TO THE WEST GROVE CRA; FURTHER AUTHORIZING ANY AMENDMENTS, EXTENSIONS, RENEWALS, AND MODIFICATIONS TO SAID AGREEMTNS, ALL IN FORMS ACCEPTABLE TO THE GENERAL COUNSEL, FOR SAID PURPOSE. 3. OMNI CRA RESOLUTION 10649 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE, RATIFYING, CONFIRMING, AND APPROVING THE EXECUTIVE DIRECTOR'S WRITTEN FINDING OF AN EMERGENCY, ATTACHED AND INCORPORATED, PURSUANT TO SECTION 18-90 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AND WAIVING COMPETITIVE SEALED BIDDING PROCEDURES FOR THE SHORING OF THE CITIZENS BANK BUILDING LOCATED AT 1367 NORTH MIAMI AVENUE, MIAMI, FLORIDA AS AN EMERGENCY PROCUREMENT AS RECOMMENDED BY THE ENGINEERING REPORT ATTACHED AND INCORPORATED AS EXHIBIT "A"; RETROACTIVELY AUTHORIZING THE EXPENDITURE IN THE AMOUNT OF $5,800,000.00 AND THE SELECTION OF MASS CONSTRUCTION CORPORATION FOR SAID EMERGENCY. OMNI Community Redevelopment Agency Page 2 Printed on 9/7/2021 OMNI Community Redevelopment Agency Meeting Agenda September 13, 2021 4. OMNI CRA RESOLUTION 8994 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE, RATIFYING, CONFIRMING, AND APPROVING THE OMNI CRA WRITTEN FINDING OF AN EMERGENCY, ATTACHED AND INCORPORATED, PURSUANT TO SECTION (18-90) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), RATIFYING AND APPROVING THE EXPENDITURES FOR RELOCATION EXPENSES FOR THE RESIDENTS OF 1440 NW 1ST AVENUE, MIAMI, FLORIDA 33136 AS AN EMERGENCY PROCUREMENT. 5. OMNI CRA RESOLUTION 10631 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE EXECUTIVE DIRECTOR'S RECOMMENDATION AND FINDING THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS PURSUANT TO SECTIONS 18-85 AND 18-86 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AS ADOPTED BY THE CRA; WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CRA; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN AGREEMENT WITH SUPPORTING DOCUMENTS ALLOCATING GRANT FUNDS OF $15,000,000.00 FOR A MIXED -USE DEVELOPMENT PROJECT OF PROPERTIES LOCATED 1441, 1445, AND 1455 N. MIAMI AVENUE, 25 AND 31 N.E. 14TH STREET, AND 1412, 1418, 1428, AND 1432 N.E. MIAMI COURT, MIAMI, FLORIDA WITHIN THE REDEVELOPMENT AREA, IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, SUBJECT TO THE CRA BEING ABLE TO SUCCESSFULLY SECURE FINANCING AND SUBJECT TO THE AVAILABILITY OF FUNDS. OMNI Community Redevelopment Agency Page 3 Printed on 9/7/2021 OMNI Community Redevelopment Agency Meeting Agenda September 13, 2021 6. OMNI CRA RESOLUTION 10633 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CRA TO REBATE TO 14TH STREET DEVELOPMENT LLC, A FLORIDA LIMITED LIABILITY CORPORATION ("GRANTEE"), THE TAX INCREMENT FINANCE ("TIF") REVENUES GENERATED ONLY FROM THE DEVELOPMENT BY THE GRANTEE OF THE 14TH STREET APARTMENT PROJECT ("PROJECT") IN AN AMOUNT NOT TO EXCEED 95% OF THE AVAILABLE DEVELOPMENT TIF COLLECTED FROM THE PROJECT ANNUALLY OR $816,731 ANNUALLY, WHICHEVER IS LESS, PER YEAR UNTIL 2047 IF THE LIFE OF THE CRA IS EXTENDED TO 2047, FOR A TOTAL AMOUNT NOT TO EXCEED $13,600,000.00 WITH PAYMENT TO BEGIN UPON SUBSTANTIAL COMPLETION AND THE PROJECT RECEIVING A CERTIFICATE OF OCCUPANCY, SUBJECT TO THE RENTS BEING RESTRICTED UNTIL 2047 IF THE LIFE OF THE CRA IS EXTENDED TO 2047; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, ALL IN A FORMS ACCEPTABLE TO GENERAL COUNSEL. ADJOURNMENT OMNI Community Redevelopment Agency Page 4 Printed on 9/7/2021 OMNI Board of Commissioners Meeting September 13, 2021 2.1 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Ken Russell and Members of the CRA Board From: Jason Walker Executive Director Date: September 2, 2021 File: 10629 Subject: Approving Omni CRA's General Operating Budget & Tax Increment Fund Budget for FY '21-'22 Enclosures: 10629 Exhibit A BACKGROUND: It is recommended that the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency ("CRA") approve and adopt the attached resolution, with attachment(s), adopting the proposed Omni CRA's General Operating Budget and Tax Increment Fund Budget, for the fiscal year commencing October 1, 2021, and ending September 30, 2022, and further directing the Executive Director to transmit a copy of each budget to the City of Miami and Miami Dade County. JUSTIFICATION: The Interlocal Agreement requires the OMNI CRA to annually prepare a proposed budget and transmit same to City of Miami and Miami Dade County. This Resolution fulfills this requirement. Packet Pg. 5 2.1 Omni CRA City of Miami Legislation OMNI CRA Resolution OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 10629 Final Action Date: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), APPROVING AND ADOPTING THE CRA'S PROPOSED GENERAL OPERATING BUDGET AND TAX INCREMENT FUND BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT A COPY OF THE BUDGET TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. WHEREAS, the Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area; and WHEREAS, as a prerequisite to carrying out Fiscal Year 2021-2022 redevelopment activities, the Board of Commissioners must approve the CRA's proposed General Operating Budget and Tax Increment Fund Budget ("Budget") for the Fiscal Year commencing October 1, 2021 and ending September 30, 2022 ("Fiscal Year"); and WHEREAS, as part of the approval of the Fiscal Year Budget, the CRA hereby deobligates the unused portion of the funds allocated for the purchase of the real property located at 4028 NW 1st Avenue, Miami, Florida as previously authorized by CRA Resolution No. CRA-R-19-0001 as the funds are no longer needed for the acquisition of the property; and WHEREAS, as part of the approval of the Fiscal Year Budget, the CRA hereby deobligates the unused portion of the funds allocated to the Sundari Foundation d/b/a Lotus House for a portion of the costs associated with the Lotus House Program as previously authorized by CRA Resolution No. CRA-R-19-0045 as the funds are no longer needed for the Lotus House Program; and WHEREAS, the CRA's Budget is in the total amount of $66,531,544.00 for the Fiscal Year; and WHEREAS, as part of the Budget, the Executive Director of the CRA shall receive an annual salary of One Hundred Eighty Thousand Dollars and a cost -of -living adjustment increase no greater than two to five percent (2% - 5%) each year thereafter; and WHEREAS, a copy of the Budget is required to be transmitted to the City of Miami ("City") and Miami -Dade County ("County"); NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT 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. City of Miami Page 2 of 3 File ID: 10629 (Revision:) Printed On: 9/4/2021 Packet Pg. 6 Section 2. The Executive Director's salary is adjusted to reflect an annual amount of One Hundred Eighty Thousand Dollars plus annual cost of living increases as stated herein. 2.1 Section 3. The Budget for the Fiscal Year, attached and incorporated as Exhibit "A", is approved and adopted. Section 4. The Executive Director is directed to transmit a copy of the budget to the City and the County. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: VICTORIA MENDEZ, GENERAL COUNSEL City of Miami Page 3 of 3 File ID: 10629 (Revision:) Printed On: 9/4/2021 Packet Pg. 7 2.1.a OMNI TAX INCREMENT FUND BUDGET FY 2022 PROPOSED: BUDGET FY 2021 ADOPTED BUDGET BUDGET VARIANCE REVENUES CITY OF MIAMI - TAX INCREMENT $18,191,428 $18,726,124 ($534,696) MIAMI DADE COUNTY - TAX INCREMENT (ORI3lNAL BOUNDARIES) $11,070,284 $11,401,481 ($331,197) CITY OF MIAMI- TAX INCREMENT (2009 ADDITION EXPANDED BOUNDARIES) $823,665 $650,015 $223,850 MIAMI DADE COUNTY -TAX INCREMENT (2009 ADDITION EXPANDED BOUNDARIES) $502,155 $385,021 $162,134 Total TIF Revenues S30,747,532 2020 FUND BALANCE LOAN SERIES 2018 A and 2018 B (Funds held by Bank United) $11,288,880 $11,767,372 $18,518 TRANSFER FROM MIDTOWN CRA (Administration) $114,223 $88,462 $16,252 RENT INCOME $100,000 $80,000 $20,000 2022 CHILDREN TRUST CONTRIBUTION $1,150,560 $1,246,906 ($96,346) 2021 ESTIMATED FUND BALANCE (It includes the $4,552,500 - Reimbursement from Loan $22,631,839 $18,481,810 $4,140,229 Series 2018A) TOTALIREVENUE. - - .: $66,531,544 ; $62,856,9961 $3,674,549 REDEVELOPMENTEXPENDIT.URES. ACCOUNTINGANDAUDIT $15,000 $15,000 $0 PROFESSIONAL SERVICES -OTHER $425,820 $325,920 $100,000 OTHER CONTRACTUAL SERVICES $300,000 $300,000 $0 INTERFUND TRANSFER (Debt Service) $2,815,196 $2,814,140 $1,056 INTERFUND TRANSFER (Grant) $812,500 $812,500 $0 OTHER CURRENT CHARGE $0 $1,500,000 ($1,500,000) OTHER GRANTS AND AIDS $38,322,860 $35,801,708 $2,421,252 ADMINLSTRATIVE.EXPENDITURES - REGULAR SALARIES $1,058,540 $813,640 $144,900 FICA TAXES $77,857 $68,883 $7,964 LIFE AND HEALTH INSURANCE $130,000 $120,000 $10,000 RETIREMENT CONTRIBUTION $50,000 $50,000 $0 FRINGE BENEFITS $54,500 $54,500 $0 OTHER CONTRACTUAL SERVICE $140,000 $130,000 $10,000 TRAVEL AND PER DIEM $30,000 $30,000 $0 UTILITY SERVICE $20,300 $20,300 $0 INSURANCE $115,000 $115,000 $0 OTHER CURRENT CHARGE $236,617 $216,867 $18,250 SUPPLIES $10,000 $10,000 $0 OPERATING -SUPPLIES ---- $10,000 $10,000 --$0 SUBSCRIPTION MEMBERSHIP $17,000 $17,000 $0 MACHINERY AND EQUIPMENT $6,000 $6,000 $0 ADVERTISING $30,000 $30,000 $0 RENTAL AND LEASES $3,600 $3,600 $0 POSTAGE $2,000 $2,000 $0 REPAIR/MAINTENANCE - OUTSIDE $2,000 $2,000 $0 INTERFUND TRANSFER $18,000 $18,000 $0 Total Adminlnralroe Cmpendl lures $2,011,416 RESERVE FOR 2007 GLOBAI AGREEMENT (TIJNN EL) $4,084,633 $4,231,000 ($146,362) RESERVE FOR 2007 GLOBAL AGREEMENT (35 % PAC) $10,761,636 $10,810,424 ($148,788) RESERVE FOR INTERLOCAL CHILDREN'STRUST $1,150,560 $1,246,906 ($86,346) PAYMENT TO CITY OF MIAMI FOR MAURICE FERRE PARK $3,000,000 $0 $3,000,000 Total Reserve for 04119allolls Wlth Other Governing $38,996,629 RESERVE FOR M€DTOWN ADM EXPENDITURES $114,223 $88,462 $16,256 RESERVE FOR SECURITY DEPOSIT- MEC $125,000 $125,000 $0 RESERVE FOR SECURITY DE POST - 1401 GROUP LLC $40,000 $40000 $0 RESERVE FOR CAPITAL EXPENDITURES $1,354,348 $1,311,442 $42,802 RESERVE FOR PAYMENTOF PROPERTY TAXES- MEC $228,612 $208,862 $18,250 RESERVE FOR LOAN PROCEEDS SERIES 2019 A & B $0 $47,500 ($47,500) Total Resorvo for Othor $1,663,689 $0 2019 BUDGET RESERVE $28,883 $28,893 $0 2020 BUDGET RESERVE $406,621 $249,298 $157,373 2021 BUDGET RESERVE $532,421 $820,131 ($332,660) Tolal Unrestrkrred Reserve $968,035 ITOTAL FUND -BALANCE - $66,531,544 :S62,1356,996 . $3,674,548 A) B) C} 2022TIF Revenue 2022 TIF Rev for Affordable Housing % 2022 Budget for Affordable Housin g $30,242,532 $3,024,253 10% 2022 TIF Revenue $30,242,532 2022 Administrative Expenditures $2,011,414 % Administrative Exp / 2022 TIF Revenue 7% Budget Reserve (2019, 2020 and 2021) $868,035 Total 2022 Budget $66,531,544 % 2022 Budget Reserve / Total 2022 Budget 1.46% So $o Attachment: 10629 Exhibit A (10629 : Approving Omni CRA's General Operating Budget & Tax Increment Fund Budget for FY '21 '22) t Packet Pg. 8 OMNI Board of Commissioners Meeting September 13, 2021 2.2 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Ken Russell and Members of the CRA Board Jason Walker Executive Director Date: September 4, 2021 File: 10648 Subject: West Grove CRA Administrative Services Enclosures: 10648 Backup RECOMMENDATION: It is recommended that the Board of Commissioners of the Omni Community Redevelopment Agency ("Omni CRA"), approve the attached resolution authorizing the Omni CRA's Chairman to negotiate and execute any and all necessary agreements, pursuant to Florida to Statues § 112.24, with the West Grove Community Redevelopment District Community Redevelopment Agency ("West Grove CRA") to provide administrative services and support to the West Grove CRA; further authorizing the Chairman of the Omni CRA to negotiate and execute any amendments, extensions, renewals, and modifications to said agreements. It is also recommended that the Omni CRA is authorized to give financial support to the West Grove CRA which shall be reimbursed when the West Grove CRA is self-sufficient. JUSTIFICATION: The City of Miami on January 11, 2018, through Resolution R-18-0010 previously approved and adopted the Finding of Necessity Study pursuant to Florida Statute Section 163.335. The West Grove area as outlined in the study was declared to be slum and blighted. On March 25, 2021, the City of Miami through Resolution R-21-0119 created the West Grove Community Redevelopment Agency in accordance with Florida Statutes Chapter 163.356 titled, "Creation of a Community Redevelopment Agency." The West Grove CRA is currently in need of staff to carry out the daily administrative tasks and duties of the agency. Section 122.24 Florida State Statutes allows for the temporary assignment of employees among agencies and government. In order to make the most efficient use of expertise, staff and resources, the Board of Commissioners of the West Grove CRA and the Omni CRA intend to use the same staff to manage the administrative tasks and duties of both agencies. Financial support to the Packet Pg. 9 2.2 West Grove CRA shall also be provided by the Omni CRA subject to the availability of funds and shall be reimbursed to the Omni CRA within a reasonable time as soon as the West Grove CRA is self-sufficient." This Resolution approves the authorization of the Omni CRA's Chairman to negotiate and execute any and all necessary agreements between the Omni CRA and West Grove CRA, and any amendments, extensions, renewals, and modifications. The Resolution also authorizes the Omni CRA to provide financial support to the West Grove CRA which shall be reimbursed when the West Grove CRA is self-sufficient. FUNDING: Amount to be determined upon creation and finalization of the West Grove CRA's budget. City of Miami Page 2 of 4 File ID: 10648 (Revision:) Printed On: 9/4/2021 Packet Pg. 10 Of i -we ilk Omni CRA City of Miami Legislation OMNI CRA Resolution OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 10648 Final Action Date: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("OMNI CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY AGREEMENTS PURSUANT TO SECTION 112.24, FLORIDA STATUTES, WITH THE WEST GROVE COMMUNITY REDEVELOPMENT AGENCY ("WEST GROVE CRA"), ALL IN FORMS ACCEPTABLE TO THE GENERAL COUNSEL, WITH RESPECT TO SERVICES PREVIOUSLY PROVIDED BY THE OMNI CRA'S STAFF ON BEHALF OF THE WEST GROVE CRA AND TO AUTHORIZE THE OMNI CRA'S STAFF TO PROVIDE ONGOING ADMINISTRATIVE SERVICES, SUPPORT, AND FUNDING TO THE WEST GROVE CRA; FURTHER AUTHORIZING ANY AMENDMENTS, EXTENSIONS, RENEWALS, AND MODIFICATIONS TO SAID AGREEMTNS, ALL IN FORMS ACCEPTABLE TO THE GENERAL COUNSEL, FOR SAID PURPOSE. WHEREAS, the Omni Redevelopment District Community Redevelopment Agency ("Omni CRA") is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area; and WHEREAS, the West Grove Community Redevelopment Agency ("West Grove CRA") is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area; and WHEREAS, both the Omni CRA and the West Grove CRA are public agencies authorized to enter into agreements with other public agencies pursuant to Section 163.01, Florida Statutes, known as the "Florida Interlocal Cooperation Act of 1969" to make the most efficient use of their powers by enabling them to cooperate with each other on the basis of mutual advantage and thereby provide services and facilities that will harmonize geographic, economic, population, and other factors influencing the needs and development of local communities; and WHEREAS, Section 112.24, Florida Statues, further allows for the temporary assignment of employees among agencies of government; and WHEREAS, the provision of administrative services and related duties by the Omni CRA on behalf of the West Grove CRA is within the agencies' respective authorities through the approval and execution of an Interlocal Agreement; and WHEREAS, the West Grove CRA previously adopted Resolution No. WG-CRA-R-21- 0003 on August 10, 2021 authorizing the West Grove CRA's Chairman to negotiate and execute any and all necessary agreements pursuant to Section 112.24, Florida Statutes, with the Omni CRA for the provision of administrative services and support for the West Grove CRA; and WHEREAS, the Omni CRA is positioned to provide such administrative services and related duties on behalf of the West Grove CRA; and City of Miami Page 3 of 4 File ID: 10648 (Revision:) Printed On: 9/4/2021 2.2 Packet Pg. 11 2.2 WHEREAS, the Omni CRA may also provide financial support to the West Grove CRA, subject to the availability of funds which shall be reimbursed by the West Grove CRA as soon as the West Grove CRA is self-sufficient; and WHEREAS, in order to make the most efficient use of expertise, staff, and resources, the Board of Commissioners of the Omni CRA wishes to permit the Omni CRA's staff to provide the administrative services and related duties to the West Grove CRA pursuant to a negotiated Interlocal Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT 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. Section 2. The Executive Director is authorized to negotiate and execute any and all necessary agreements consistent with applicable Florida law with the West Grove CRA, in forms acceptable to the General Counsel, in order to authorize the Omni CRA's staff to provide administrative services and related duties on behalf of the West Grove CRA, including any and all services previously provided to the West Grove CRA. Section 3. The Omni CRA is authorized to provide financial support to the West Grove CRA pursuant to a negotiated agreement, in a form acceptable to the General Counsel and subject to the condition that the West Grove CRA reimburse the Omni CRA for any and all funds and services provided within a reasonable time once the West Grove CRA becomes self- sufficient, including any and all funds previously provided to the West Grove CRA. Section 4. The Executive Director is further authorized to negotiate and execute any and all necessary amendments, extensions, renewals, and modifications to said agreements, all in forms acceptable to the General Counsel, for said purposes. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: VICTORIA MENDEZ, GENERAL COUNSEL City of Miami Page 4 of 4 File ID: 10648 (Revision:) Printed On: 9/4/2021 Packet Pg. 12 West Grove Board of Commissioners Meeting August 10, 2021 2.2.a WEST GROVE COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Ken Russell Date: August 4, 2021 File: 9483 Subject: West Grove CRA Administrative Services and Support Enclosures: RECOMMENDATION: It is recommended that the Board of Commissioners of the West Grove Community Redevelopment Agency ("West Grove CRA"), approve the attached resolution authorizing the West Grove CRA's Chairman to negotiate and execute any and all necessary agreements, pursuant to Florida to Statues § 112.24, with the Omni Redevelopment District Community Redevelopment Agency ("Omni CRA") to provide administrative services and support to the West Grove CRA; further authorizing the Chairman of the West Grove CRA to negotiate and execute any amendments, extensions, renewals, and modifications to said agreements. It is also recommended that the West Grove CRA is authorized to accept financial support from the Omni CRA which shall be reimbursed when the West Grove CRA is self-sufficient. JUSTIFICATION: The City of Miami on January 11, 2018, through Resolution R-18-0010 previously approved and adopted the Finding of Necessity Study pursuant to Florida Statute Section 163.335. The West Grove area as outlined in the study was declared to be slum and blighted. On March 25, 2021, the City of Miami through Resolution R-21-0119 created the West Grove Community Redevelopment Agency in accordance with Florida Statutes Chapter 163.356 titled, "Creation of a Community Redevelopment Agency." The West Grove CRA is currently in need of staff to carry out the daily administrative tasks and duties of the agency. Section 122.24 Florida State Statutes allows for the temporary assignment of employees among agencies and government. In order to make the most efficient use of expertise, staff and resources, the Board of Commissioners of the West Grove CRA and the Omni CRA intend to use the same staff to manage the administrative tasks and duties of both agencies. Financial support to the West Grove CRA shall also be provided by the Omni CRA subject to the availability of funds and shall be reimbursed to the Omni CRA as soon as the West Grove CRA is self-sufficient. Packet Pg. 13 2.2.a This Resolution approves the authorization of the West Grove CRA's Chairman to negotiate and execute any and all necessary agreements between the Omni CRA and West Grove CRA, and any amendments, extensions, renewals, and modifications. The Resolution also authorizes the West Grove CRA to accept financial support from the Omni CRA which shall be reimbursed when the West Grove CRA is self-sufficient. FUNDING: Amount to be determined upon creation and finalization of the West Grove CRA's budget. City of Miami Page 2 of 4 File ID: 9483 (Revision:) Printed On: 8/4/2021 Packet Pg. 14 2.2.a City of Miami Legislation West Grove CRA Resolution File Number: 9483 Final Action Date: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE WEST GROVE COMMUNITY REDEVELOPMENT AGENCY (" WEST GROVE CRA") AUTHORIZING THE WEST GROVE CRA'S CHAIRMAN TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY AGREEMENTS PURSUANT TO SECTION 112.24, FLORIDA STATUTES, WITH THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("OMNI CRA") FOR THE OMNI CRA'S STAFF TO PROVIDE ADMINISTRATIVE SERVICES AND SUPPORT TO THE WEST GROVE CRA; FURTHER AUTHORIZING ANY AMENDMENTS, EXTENSIONS, RENEWALS, AND MODIFICATIONS TO SAID AGREEMENTS, ALL IN FORMS ACCEPTABLE TO THE COUNSEL FOR THE WEST GROVE CRA, FOR SAID PURPOSE. WHEREAS, pursuant to Resolution No. R-709-20 adopted on July 21, 2020, the Board of Commissioners of Miami -Dade County ("County") delegated the power to create a community redevelopment agency in the West Grove Area to the City of Miami ("City") with the initial sole power of preparing and adopting a redevelopment plan; and WHEREAS, pursuant to Resolution No. R-21-0119 adopted on March 25, 2021, the City created the West Grove Community Redevelopment Agency ("West Grove CRA"); and WHEREAS, the West Grove CRA is in need of staff to carry out the daily administrative tasks and duties of the agency; and WHEREAS, Section 122.24, Florida Statutes, allows for the temporary assignment of employees among agencies of government; and WHEREAS, financial support to the West Grove CRA shall also be provided by the Omni Redevelopment District Community Redevelopment Agency ("Omni CRA") subject to the availability of funds and shall be reimbursed to the Omni CRA as soon as the West Grove CRA is self-sufficient; and WHEREAS, in order to make the most efficient use of expertise, staff, and resources, the Board of Commissioners of the West Grove CRA and the Omni CRA intend to use the same staff to manage the administrative tasks and duties of both agencies; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE WEST GROVE 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 as if fully set forth in this Section. Section 2. The Chairman of the West Grove CRA is authorized to negotiate and execute any and any and all necessary agreements pursuant Florida Statutes with the Omni CRA for the Omni CRA's staff to provide administrative services to the West Grove CRA. City of Miami Page 3 of 4 File ID: 9483 (Revision:) Printed On: 8/4/2021 Packet Pg. 15 Section 3. The West Grove CRA is authorized to accept financial support from the Omni CRA which shall be reimbursed when the West Grove CRA is self-sufficient. 2.2.a Section 4. The Chairman of the West Grove CRA is further authorized to negotiate and execute any necessary amendments, extensions, renewals, and modifications to said agreements, all in forms acceptable to the Counsel for the West Grove CRA, for said purposes. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: VICTORIA MENDEZ, GENERAL COUNSEL City of Miami Page 4 of 4 File ID: 9483 (Revision:) Printed On: 8/4/2021 Packet Pg. 16 OMNI Board of Commissioners Meeting September 13, 2021 2.3 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Ken Russell and Members of the CRA Board Jason Walker Executive Director Date: September 3, 2021 File: 10649 Subject: 4/5ths Emergency Procurement — Citizens Bank Building Enclosures: 10649 Exhibit A 10649 Exhibit B 10649 Notice to the Public 10649 City of Miami Emergency Code Sec. 18-90 10649 Citizens Phase I Budget 10649 Citizens Phase 11 Budget BACKGROUND: The Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the 2019 CRA Redevelopment Plan ("Plan"). On September 13, 2016, the CRA approved and adopted Resolution No. CRA-R-16- 0042, adopting the City of Miami's procurement code as the process in which any and all services and goods are procured by the CRA. The Historic Citizens Bank Building was purchased by the CRA in 2017. The property is located at the corner of North Miami Avenue and 13th Street located within the Redevelopment District. The location is a prime location and presents numerous opportunities for growth, development, restoration and rehabilitation consistent with the CRA's Redevelopment Plan. The CRA has been awarded a Special Category Grant from the Florida Department of State in the amount of $500,000 for the restoration of the Citizens Bank. The 2019 Redevelopment Plan of the CRA highlights this property and the goal of the CRA in its historic preservation in Page 4-45. JUSTIFICATION: In light of the above -mentioned background information, rehabilitation of the building and the safety of the community it is respectfully recommended that the Board of Directors of the CRA adopt the attached resolution by a four -fifths (4/5ths) affirmative vote, ratifying, confirming and approving the Executive Director's finding that it was most advantageous for the CRA to retain the services of Mass Construction for the shoring of the Bank Building. FUNDING: Packet Pg. 17 $5,800,000.00 plus a contingency of up to 10% allocated from Omni Tax Increment Fund 2020-2021 Budget Line Items 11, 11-1, and 31. 2.3 City of Miami Page 2 of 4 File ID: 10649 (Revision:) Printed On: 9/4/2021 Packet Pg. 18 2.3 Omni CRA City of Miami Legislation OMNI CRA Resolution OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 10649 Final Action Date: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, RATIFYING, CONFIRMING, AND APPROVING THE EXECUTIVE DIRECTOR'S WRITTEN FINDING OF AN EMERGENCY, ATTACHED AND INCORPORATED, PURSUANT TO SECTION 18-90 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AND WAIVING COMPETITIVE SEALED BIDDING PROCEDURES FOR THE SHORING OF THE CITIZENS BANK BUILDING LOCATED AT 1367 NORTH MIAMI AVENUE, MIAMI, FLORIDA AS AN EMERGENCY PROCUREMENT AS RECOMMENDED BY THE ENGINEERING REPORT ATTACHED AND INCORPORATED AS EXHIBIT "A"; RETROACTIVELY AUTHORIZING THE EXPENDITURE IN THE AMOUNT OF $5,800,000.00 AND THE SELECTION OF MASS CONSTRUCTION CORPORATION FOR SAID EMERGENCY. WHEREAS, the Omni Redevelopment District Community Redevelop Agency ("CRA") currently owns the Citizens Bank Building located at 1367 North Miami Avenue, Miami, Florida ("Bank Building") and is responsible for the renovation and rehabilitation of the historic property; and WHEREAS, the Bank Building was purchased by the CRA in 2017; and WHEREAS, the CRA has retained the services of R.J. Heisenbottle ("Architect") for architectural services of the Bank Building; and WHEREAS, the CRA has been awarded a Special Category Grant from the Florida Department of State in the amount of $500,000.00 for the restoration of the Bank Building; and; WHEREAS, the Architect notified the CRA that the facade and interior structure of the Bank Building is deteriorating rapidly due to water intrusion and spalling (collectively, "Damage"); and WHEREAS, the Bank Building is both historically designated and fronting on a public sidewalk; and WHEREAS, due to the significance of the Damage, the Architect and his subcontracted Engineer recommended that the CRA immediately support and brace the Bank Building in order to preserve the historical facade while protecting the public from any danger of collapse as outlined in Exhibit "A," attached and incorporated; and WHEREAS, it is a matter of public health and safety that the Bank Building is properly secured; and WHEREAS, the emergency nature of the rapid mobilization may result in necessitating subsequent changes in the budget for the renovation and rehabilitation of the Bank Building; and City of Miami Page 3 of 4 File ID: 10649 (Revision:) Printed On: 9/4/2021 Packet Pg. 19 2.3 WHEREAS, the Executive Director, pursuant to Section 18-90 of the Code of the City of Miami, Florida, as amended ("City Code"), approved an emergency bid waiver to procure the services of a Mass Construction Corporation ("Mass"), a licensed general contractor meeting all insurance requirements to complete the emergency repair services as recommended by the Architect; and WHEREAS, the use of the emergency bid waiver pursuant to the City Code is justified as the Executive Director found that it was not practicable or advantageous to undergo the formal bidding for a licensed general contractor because the time duration involved in formal bidding would mean the Bank Building would present serious structural issues that pose a safety hazard to the general public and significant further deterioration of the Bank Building, all as detailed in Exhibit "B", attached and incorporated; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. By a four -fifths (4/5ths) affirmative vote, pursuant to Section 18-90 of the City Code, the Executive Director's emergency finding, attached and incorporated as Exhibit "B", is approved and confirmed, the requirements for competitive sealed bidding procedures are waived, and the emergency procurement of the services of Mass is approved as an emergency procurement in the amount of $5,800,000.00, plus a contingency of ten percent (10%) of the contract amount. Section 3. The Executive Director is authorized to negotiate and retroactively execute any and all agreements necessary, all in forms acceptable to the General Counsel, for the purposes stated herein. Section 4. The Executive Director is further authorized to negotiate any and all other necessary documents, all in forms acceptable to the General Counsel, for the purposes stated herein Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: VICTORIA MENDEZ, GENERAL COUNSEL City of Miami Page 4 of 4 File ID: 10649 (Revision:) Printed On: 9/4/2021 Packet Pg. 20 EXHIBIT "A 2.3.a From: Douglas Wood <dwood@douglaswood.biz> Sent: Friday, April 2, 2021 4:10:27 PM To: Unsafestructures<unsafestructures@miamigov.com>; Internet Building <Building@miamigov.com> Cc: Richard Heisenbottle <richard@rjha.net>; Balzebre, Anthony <ABalzebre@miamigov.com> Subject: Unsafe Structure - Immediate Attention - Citizens Bank - 1367 North Miami Avenue CAUTION: This is an email from an external source. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Building Official, We are the structural engineers for the above -referenced historical, restoration project for the Omni/Midtown CRA. The original design set of drawings was completed in 2019. We understand that there have been permitting delays, but that the CRA wishes to proceed with the project. Therefore, I visited the building this afternoon with one of my associates. Unfortunately, we found that in the past approximately two years, the deterioration of the structural systems has progressed considerably. Greater areas of the roof have collapsed, the northern area of the second floor wall on the east side of the building has rotated inward a few to several inches (and therefore, has disconnected from the front (north) wall, leaving it more unstable), a spalling lintel has loose pieces of concrete that will fall to the sidewalk (and some pieces already have fallen), and at least one (likely two) interior concrete column has collapsed (leaving the reinforcing bars buckled, the second -floor beams lowered, and the column tilted). Please see attached representative photographs. In our opinion, the current condition is unsafe and unstable. Therefore, we recommend that an appropriate area around the building be immediately blocked off and secured from entry by all people and traffic. Feel free to call me to discuss the situation. Sincerely, DOUGLAS WOOD ASSOCIATES, INC. Douglas Wood, P.E., SECB President 5040 N.W. 7th Street Suite 820 Miami, Florida 33126 Phone: (305) 461 - 3450 Ext. 300 https://www.douglaswood.biz/ Packet Pg. 21 2.3.b Ken Russell Board Chair Omni CRA Jason Walker Executive Director To: Board Chair Ken Russell and Members of the CRA Board From: Jason Walker, Executive Director Date: September 13th, 2021 Subject: 4/5ths Bid Waiver to Waive Competitive Negotiation Procedures per City Code, authorizing the CRA to retain the services of Mass Construction for the shoring of the Citizens Bank Building References: Enclosures: Cover Memo, Resolution, Public Hearing Notice BACKGROUND: The Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the 2019 CRA Redevelopment Plan ("Plan"). On September 13, 2016, the CRA approved and adopted Resolution No. CRA-R-16- 0042, adopting the City of Miami's procurement code as the process in which any and all services and goods are procured by the CRA. The Historic Citizens Bank Building was purchased by the CRA in 2017. The property is located at the corner of North Miami Avenue and 13th Street located within the Redevelopment District. The location is a prime location and presents numerous opportunities for growth, development, restoration, and rehabilitation consistent with the CRA's Redevelopment Plan. The CRA has been awarded a Special Category Grant from the Florida Department of State in the amount of $500,000 for the restoration of the Citizens Bank. The 2019 Redevelopment Plan of the CRA highlights this property and the goal of the CRA in its historic preservation in Page 4-45. The CRA became aware through the architect that the facade and interior structure of the Citizens Bank Building is deteriorating rapidly due to water intrusion and spalling. Since the building is both historically designated and is fronting on a public sidewalk, the architect recommended that the CRA immediately support and brace the Citizens Bank Building in order to preserve the historical facade while protecting the public from any danger of collapse as outlined in the attached documents. OMNI COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI1401 N. Miami Ave 2nd Floor 1 Miami, FL 33136 (305) 679 6868 1 http://www.omnicra.com/ Packet Pg. 22 2.3.b It is a matter of public health and safety that the Building is properly secured. The emergency nature of the rapid mobilization are necessitated by the health and safety of the public as well as the preservation of the historic facade of the building. The Executive Director found that it was not practicable or advantageous to undergo the formal bidding for a licensed general contractor because the time duration involved in formal bidding would mean the Bank Building would present serious structural issues that pose a safety hazard to the general public and significant further deterioration. The Executive Director approved an emergency bid waiver to procure the services of Mass Construction Corporation ("Mass"), a licensed general contractor meeting all insurance requirements, which was familiar with the design of the Bank, to complete the services as recommended by the architect. RECOMMENDATION: In light of the above -mentioned background information, it is recommended that, in accordance with the CRA's identified objectives in the CRA's plan to reduce slum and blight and to preserve historic buildings, and in consideration of the CRA's Plan and current efforts to rehabilitate and activate this location, a bid waiver should be authorized for the Executive Director to negotiate and retroactively execute and ratify any and all agreements necessary for the purposes stated herein. OMNI COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI1401 N. Miami Ave 2'd Floor 1 Miami, FL 33136 (305) 679 6868 1 http://www.omnicra.com/ Packet Pg. 23 2.3.c ifik• Omni C R A OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY NOTICE OF PUBLIC HEARING The Board of Commissioners ("Board") of the Omni Redevelopment District Community Redevelopment Agency ("CRA") will hold a Public Hearing on Monday, September 13th, 2021, at 9:30 a.m. or anytime thereafter in the City Commission chambers located at Miami City Hall, 3500 Pan American Drive, Miami, FL 33133. The Board will consider the award funds to MASS CONSTRUCTION CORP., a legal entity authorized to transact business/render services in the State of Florida, to underwrite a portion of the costs associated with the renovation and rehabilitation of the historic property. In accordance with the Board's 2019 Redevelopment Plan ("Plan") and Florida Statutes 163, the Board will consider the funding, in an amount not to exceed $5,800,000.00 to underwrite the expenditures and costs associated with the shoring of The Citizens Bank Building located at 1367 North Miami Avenue, Miami, Florida as an Emergency Procurement. his funding is critical in the development of the Project, as it is a matter of public health and safety that the Bank Building is properly secured. All comments and questions with respect to the meeting and remote public participation should be addressed to Jason Walker, Executive Director, at 1401 N. Miami Ave., 2nd Floor, Miami Florida 33136 (305) 679-6868. Should any person desire to appeal any decision of the Board with respect to any matter considered at this meeting, that person shall ensure that a verbatim record of the proceedings is made, including all testimony and evidence upon which any appeal may be based (F.S. 286.0105). In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodations to participate in this proceeding may contact the Office of the City Clerk at (305) 250-5361 (Voice), not later than two (2) business days prior to the proceeding. TTY users may call 711 (Florida Relay Service), not later than two (2) business days prior to the proceeding. Ad No.36444 Todd B. Hannon Clerk of the Board Attachment: 10649 Notice to the Public (10649 : 4/5ths Emergency Procurement — Citizens Bank Building) Packet Pg. 24 2.3.d Sec. 18-90. Emergency procurements. In case of emergency, it is not advantageous or practicable for the city to use competitive bidding methods. Therefore, the city may purchase directly those goods or services whose immediate procurement is essential to the life, health, welfare, safety or convenience of the city. Such emergency procurements shall nevertheless be made with such competition as may be practicable under the circumstances. (1) In seeking a waiver of competitive bidding methods for emergency procurements that do not exceed $25,000.00, the head of the using department or office shall submit to the chief procurement officer in writing a full explanation of the circumstances of the emergency and the reasons for selection of a particular firm, along with a list of others which may have been solicited, with an approved requisition by the director of the requesting department. (2) In seeking the waiver of competitive sealed bidding methods for emergency procurements exceeding $25,000.00, the head of the using department or office shall submit to the chief procurement officer and the city manager in writing a full explanation of the circumstances of the emergency and the reasons for selection of a particular firm, along with a list of others which may have been solicited, and certification of fund availability from the director of the department of management and budget. The city manager may then waive competitive sealed bidding requirements after making a written finding, supported by reasons, that an emergency exists. Such finding must be ratified by an affirmative four - fifths vote of the city commission or an unanimous vote of the quorum that exists because of either abstentions or vacancies resulting from resignation, death, suspension, or physical incapacitation at the next available city commission meeting. Notwithstanding anything to the contrary contained in this Code, the city manager may direct the chief procurement officer to purchase directly those goods and/or services required by the urban search and rescue task force when activated to perform its obligations under the existing provisions of the memorandum of understanding with the state and/or the Federal Emergency Management Agency (FEMA). Such emergency procurements shall nevertheless be made with such competition as may be practicable under the circumstances. If necessary, the city manager may waive competitive sealed bidding methods for such emergency procurements, after making a written finding, supported by documentation that the urban search and rescue task force has been officially activated. Such finding and waiver must be ratified by an affirmative four -fifths vote of the city commission or an unanimous vote of the quorum that exists because of either abstentions or vacancies resulting from resignation, death, suspension, or physical incapacitation at the next regularly available city commission meeting for contracts exceeding $25,000.00. (3) All emergency awards shall be filed and maintained by the purchasing department as a permanent and public record of the purchase. (Ord. No. 12271, § 2, 8-22-02; Ord. No. 13170, § 2, 5-13-10) (Supp. No. 9, Update 1) Created: 2021-03-29 16:17:53 [EST] Attachment: 10649 City of Miami Emergency Code Sec. 18-90 (10649 : 4/5ths Emergency Procurement — Citizens Bank Building) Page 1 of 1 Packet Pg. 25 2.3.e MASS 1200 Brickell Avenue Suite 800 Miami, FL 33131 MA 00 BUDGET August 5, 2021 CITIZENS BANK - PHASE I 1361 N MIAMI AVE MIAMI, FL 33136 BLDG: 12,000 SF SITE: 0.00 ACRES CAPTAIN: ZM PHASE WORK PACKAGE LABOR MAT'L SUB TOTAL $ / SF % 01-300 PROJECTSTAFF 74,300 - - 74,300 $ 6.19 2.52%, 01-400 GENERAL REQUIREMENTS 7,714 25,136 2,000 34,850 $ 2.90 1.18% 02-10- 0 DEMOLITION - - 276,600 276,600 $ 23.05 9.38% 02-200 SITE PREPARATION 360,884 360,884 $ 30.07 12.23% 02-300 EARTHWORK 10,500 10,500 $ 0.88 0.36% 02-500 UNDERGROUND UTILITIES 84,629 84,629 $ 7.05 2.87%- 02-700 PAVING, CURBS & WALKS 74,200 74,200 $ 6.18 2.52% 03-100 CONCRETE SHELL - 955,488 955,488 $ 79.62 32.39% 05-12- 0 STRUCTURALSTEEL 389,000 $ 32.42 13.19% 05-500 MISCELLANEOUS METALS - - - - $ - 0.00%, 06-100 ROUGH CARPENTRY - - 18,000 18,000 $ 1.50 0.61% 06-200 FINISH CARPENTRY - - - - - 0.00% 07-100 CAULKING & WATERPROOFING - - - - $ - 0.00% 07-500 ROOFING - - 235,000 235,000 $ 19.58 7.97% 08-101 DOORS, FRAMES & HARDWARE - $ - 0.00% 08-300 SPECIALTY DOORS - $ - 0.00% 08-80- 0 ALUMINUM, GLASS & 09-220 STUCCO - $ - 0.00% 09-250 DRYWALL - $ - 0.00% 09-300 FLOORING - - - - $ - 0.00% 09-310 EPDXY FLOORING - - - - $ - 0.00% 09-510 CEILINGS - - - - $ - 0.00% 09-900 PAINTING - - - - $ - 0.00% 10-001 BUILDING SPECIALTIES - - - - - 0.00% 10-536 OPERABLE PARTITIONS - - 0.00% 10-800 TOILET PARTITIONS & ACCESSORIES - $ - 0.00% 11-001 EQUIPMENT - $ - 0.00% 12-001 FURNISHINGS - $ - 0.00% 13-001 SPECIAL CONSTRUCTION - $ - 0.00% 14-200 ELEVATORS/ESCALATORS - $ - 0.00% 15-300 Fl RE PROTECTION - - - $ - 0.00% 15-400 PLUMBING - 9,000 9,000 $ 0.75 0.31% 15-700 HVAC - $ - 0.00% 16-001 ELECTRICAL - 6,038 6,038 $ 0.50 0.20% 18-116 PERMIT ALLOWANCE - 10,000 10,000 $ 0.83 0.34% SUB TOTALS #1 82,014 25,136 2,431,339 $ 2,538,489 $211.54 86.06% 19-100 19-200 OVERHEAD PROFIT 7.00% 5.00% 177,694 $ 14.81 126,924 $ 10.58 6.02% 4.30% SUB TOTALS #2 $ 2,843,108 $236.93 96.39% 18-250 OWNER CONTINGENCY 18-251 MCC CONTINGENCY 18-253 CONCURRENCY & IMPACT FEES 18-300 PERMITTING & C.O. FEE ALLOWANCE 18-302 THRESHOLD & SPECIAL INSPECTIONS 18-303 MCC PERFORMANCE & PAYMENT BOND 18-305 BUILDERS RISK PREMIUMS & DEDUCTIBLES 18-306 GENERAL LIABILITY INSURANCE 0.00% 0.00% 2.50% 1.25% BY OWNER BY OWNER BY OWNER 71,078 BY OWNER 35,539 $ 2.96 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.20% TOTAL ESTIMATED CONSTRUCTION COST $ 2,949,724 $245.81 100.00% Attachment: 10649 Citizens Phase I Budget (10649 : 4/5ths Emergency Procurement — Citizens Bank Building) NOTES: Permit fees to be paid by owner Packet Pg. 26 2.3.f MASS 1200 BrickeII Avenue Suite 800 Miami, FL 33131 00 CONCEPTUAL ESTIMATE August 5, 2021 CITIZENS BANK - PHASE II 1361 N MIAMI AVE MIAMI, FL 33136 BLDG: 12,000 SF SITE: 0.00 ACRES CAPTAIN: ZM PHASE WORK PACKAGE LABOR MAT'L SUB TOTAL $ / SF % 01-300 PROJECTSTAFF 50,220 - - 50,220 $ 4.19 1.77% 01-400 GENERAL REQUIREMENTS 5,143 22,157 2,000 29,300 2.44 1.03% 02-100 DEMOLITION - $ - 0.00% 02-200 SITE PREPARATION 0.00% 02-300 EARTHWORK 0.00% 02-500 UNDERGROUND UTILITIES 0.00% 02-700 PAVING, CURBS & WALKS 41,700 41,700 $ 3.48 1.47% 02-790 SITE AMENITIES - $ - 0.00% 02-900 LANDSCAPING & IRRIGATION 13,000 13,000 $ 1.08 0.46% -03-100 CONCRETE SHELL $ 0.00% � 03 400 PRECAST CONCRETE $ 0.00% $ �05120 STRUCTURAL STEEL - $ 05-500 MISCELLANEOUS METALS - - 342,500 342,500 $ 28.54 12.09% mm06-100 ROUGH CARPENTRY 4,500 4,500 $ 0.38 0.16% �06 200 FINISH CARPENTRY 67 000 67,000 5.58 2.37% 07-100 CAULKING & WATERPROOFING - - 25,000 25,000 $ 2.08 0.88% mm07-500 ROOFING 27,000 27,000 $ 2.25 0.95% -08-101 DOORS, FRAMES & HARDWARE - 48 420 48,420 $ 4.04 1.71% 08-300 SPECIALTY DOORS 0.00% 08-800 ALUMINUM, GLASS& GLAZING - - 419,227 419,227 $ 34.94 14.80% �09-220 STUCCO _ 553 827 553 827 - 46.15 19.55% 09-250 DRYWALL 85,000 85,000 $ 7.08 3.00% 09-300 FLOORING �09-310 EPDXYFLOORING mm09-900 PAINTING ��������� - 45,000 45,000 $ 3.75 1.59% $ 0.00% $ - 0.00% 70,000 70,000 $ 5.83 2.47% 10-001 BUILDING SPECIALTIES _10-536 OPERABLE PARTITIONS - 3,000 3,000 $ 0.25 0.11% 70,000 70,000 $ 5.83 2.47% 10-800 TOILET PARTITIONS & ACCESSORIES - $ - 0.00% 11-001 EQUIPMENT 0.00% 12-001 FURNISHINGS 0.00% 13-001 SPECIAL CONSTRUCTION - $ - 0.00% 14-200 ELEVATORS/ESCALATORS - - 149,000 149,000 $ 12.42 5.26% 15-300 FIRE PROTECTION 13,300 13,300 $ 1.11 0.47% 99,750 99,750 $ 8.31 3.52% 15-400 PLUMBING 15-700 HVAC - - 165,737 165,737 $ 13.81 5.85% - 16-001 ELECTRICAL - - 105,000 105,000 $ 8.75 3.71% - 18-116 LOW VOLTAGE 10,000 10,000 0.83 0.35% SUB TOTALS #1 55,363 22,157 2,359,961 $ 2,437,481 $203.12 86.06% 19-100 19-200 OVERHEAD PROFIT 7.00% 5.00% 170,624 $ 14.22 121,874 $ 10.16 6.02% 4.30% SUB TOTALS #2 $ 2,729,979 $227.50 96.39% 18-250 OWNER CONTINGENCY 18-251 MCC CONTINGENCY 18-253 CONCURRENCY& IMPACT FEES 18-300 PERMITTING & C.O. FEE ALLOWANCE 18-302 THRESHOLD & SPECIAL INSPECTIONS 18-303 MCC PERFORMANCE & PAYMENT BOND 18-305 BUILDERS RISK PREMIUMS & DEDUCTIBLES 18-306 GENERAL LIABILITY INSURANCE 0.00% 0.00% 2.50% 1.25% BY OWNER BY OWNER BY OWNER 68,249 BY OWNER 34,125 $ 2.84 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.20% TOTAL ESTIMATED CONSTRUCTION COST $ 2,832,353 $236.03 100.00% Attachment: 10649 Citizens Phase II Budget (10649 : 4/5ths Emergency Procurement — Citizens Bank Building) NOTES: Permit fees to be paid by owner Packet Pg. 27 OMNI Board of Commissioners Meeting September 13, 2021 2.4 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Ken Russell and Members of the CRA Board Date: September 3, 2021 File: 8994 Subject: 4/5ths Emergency Procurement - �--��_ 1440 NW 1st Avenue, Miami, Florida From: Jason Walker Executive Director Enclosures: 8994 Signed Emergency Memo 8994 Notice to the Public 8994 1440 NW 1st Ave_Reimbursement Log 8994 City of Miami Emergency Code Sec. 18-90 8994 Property Damage Photos BACKGROUND: The Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the 2019 CRA Redevelopment Plan ("Plan"). On September 13, 2016, the CRA approved and adopted Resolution No. CRA-R-16- 0042, adopting the City of Miami's procurement code as the process in which all services and goods are procured by the CRA. Section 18-90 of the City of Miami's Code outlines the procedures for an emergency procurement. During the month of December, 2020, the CRA was made aware that there was damage caused by a fallen tree to a neighboring residential property adjacent to one of the CRA's owned property. The family in residence needs relocation assistance in the interim and repair to the entire dwelling structure. We are currently working with all parties at the City and our insurance company to find the most appropriate solution for the family. This item is a request for the use of funds to provide temporary assistance to the family while we structure a plan of action for the residential dwelling unit. RECOMMENDATION: In light of the above -mentioned background information, it is respectfully recommended that the Board of Directors of the CRA adopt the attached resolution by a four -fifths (4/5ths) affirmative vote, ratifying, confirming and approving the Executive Directors finding that an emergency exists and authorize funding in the amount of $39,784.34 for the temporary relocation costs for the family affected. FUNDING: $39,784.34 allocated from Omni Tax Increment Fund 2020-2021 Budget Line Item 24. Packet Pg. 28 Of i -we ilk Omni CRA City of Miami Legislation OMNI CRA Resolution OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 8994 Final Action Date: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, RATIFYING, CONFIRMING, AND APPROVING THE OMNI CRA WRITTEN FINDING OF AN EMERGENCY, ATTACHED AND INCORPORATED, PURSUANT TO SECTION (18-90) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), RATIFYING AND APPROVING THE EXPENDITURES FOR RELOCATION EXPENSES FOR THE RESIDENTS OF 1440 NW 1ST AVENUE, MIAMI, FLORIDA 33136 AS AN EMERGENCY PROCUREMENT. WHEREAS, the Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area in accordance with the 2019 Omni CRA Redevelopment Plan ("Plan"); and WHEREAS, Section 4.4, C., D-1, at page 41 of the Plan, Section 4.4, D., A-2, at page 42 of the Plan and Section 4.4, E., D-7, at page 42 of the Plan, respectively list maximizing conditions for residents to live in the area, the elimination of conditions which contribute to blight, and minimizing condemnation and relocation as stated redevelopment objectives; and WHEREAS, the single family dwelling unit located at 1440 NW 1st Ave, Miami, Florida, was damaged during a storm by a fallen tree from neighboring CRA Property; and WHEREAS, Florida Statute Section 163.370 specifically authorizes CRA's to allocate funds to help in the displacement of residents; and WHEREAS, the Executive Director is requesting authority from the Board of Commissioners pursuant to Section 18-90 of the Code of the City of Miami, Florida, as amended ("City Code") to approve emergency expenditures by a 4/5ths affirmative vote as it relates to the temporary relocation of the family and to disburse funds directly to residents or to vendors who assist the resident in relocating and to further negotiate and execute any and all documents necessary to aid in the emergency, in a form acceptable to the General Counsel; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY: Section 1. The recitals and findings contained in the Preamble of this Resolution are adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. By a four -fifths (4/5ths), affirmative vote, pursuant to Section 18-90 of the City Code, the Executive Director's emergency finding and expenditures, attached and incorporated, is ratified, retroactively approved, and confirmed and is approved as an emergency procurement. City of Miami Page 2 of 3 File ID: 8994 (Revision: A) Printed On: 9/4/2021 2.4 Packet Pg. 29 2.4 Section 3. The Executive Director is authorized to allocate funds and disburse funds at his discretion, directly to residents or vendors or entities that may assist the residents to of the property located at 1440 NW 1st Avenue, Miami Florida. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: VICTORIA MENDEZ, GENERAL COUNSEL City of Miami Page 3 of 3 File ID: 8994 (Revision: A) Printed On: 9/4/2021 Packet Pg. 30 2.4.a Jason Walker Executive Director Anthony Balzebre Assistant Director Isiaa Jones Esq., OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Date. January 19, 2021 Subjec Emergency Expenditures and Relocation Assistance References: Enclosures: The Omni Redevelopment District Community Redevelopment Agency ("CRA") respectfully requests your approval of the following emergency purchase(s) and expenditures. The expenditures, goods and/or services required herein are as a result of one or both of the following circumstance(s): 1) A public emergency (threats to health, life, welfare or safety); and 2) Relocation expenses as authorized by FS 163.370. The expenditures as a result of this emergency are in direct compliance with Chapter 163. 370 of Florida Statutes and the emergency procurement procedures as define in Section 18-90 of the City Code, authorization to waive the competitive bid process, albeit it is a retroactive authorization, is also requested for the aforementioned emergency purchase if greater than $25,000. This purchase is necessary for the following reason: During the month of December 2020 the CRA was made aware that a tree on its property had fell on the neighboring property causing significant damage to a single family dwelling unit. As a result of this damage, the unit is no longer habitable and the family has been displaced. Based on the nature of this emergency and COVID-19 emergency, it has proven extremely difficult to get as many quotes from various vendors that may be able to assist. Reimbursements and expenditures below relates to the relocation expenses for the family residing at 1440 NW 1st Avenue Miami, Florida that has been displaced because of a falling tree from Omni CRA's property located at 1428 NW 1st Avenue, Miami, Florida. As a result the CRA has offered assistance to the family including but not limited to the following: 1. Temporary relocation assistance 2. Rental assistance 3. Reimbursement of relocation expenses, food and personal items lost as a direct result of the damage Page 1 of 2 Attachment: 8994 Signed Emergency Memo (8994 : 4/5ths Emergency Procurement — 1440 NW 1st Avenue, Miami, Florida) Packet Pg. 31 2.4.a Please see the attached list of expenditures to date. The list and costs have not yet been included as some of the costs have not been fully outlined as of today's date. For example the cost to rebuild the structure, and additional relocation expenses. Upon your approval, and pursuant to Section 18-90 of the City Code, the CRA will prepare an item for ratification of this emergency for the next available Commission meeting. EXECUTIVE DIRECTOR: ASSISTANT DIRECTOR: bony Balzebre APPROVED ❑ DISAPPROVED Date: /%21t APPROVED ❑ DISAPPROVED Date: /4 VI,/ Additional certification reauired for emergency purchases greater than $25.000: EXECUTIVE DIRECTOR, OMNI CRA: I certify the funds to cover this emergency purchase are available Date: Page 2 of 2 Attachment: 8994 Signed Emergency Memo (8994 : 4/5ths Emergency Procurement — 1440 NW 1st Avenue, Miami, Florida) Packet Pg. 32 2.4.b ifik• Omni C R A OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY NOTICE OF PUBLIC HEARING The Board of Commissioners ("Board") of the Omni Redevelopment District Community Redevelopment Agency ("CRA") will hold a Public Hearing on Monday, September 13th, 2021, at 9:30 a.m. or anytime thereafter in the City Commission chambers located at Miami City Hall, 3500 Pan American Drive, Miami, FL 33133. The Board will consider the Emergency Expenditures and Purchases, in compliance with Chapter 163. 370 of Florida Statutes, for the single-family dwelling unit located at 1440 NW 1st Ave, Miami, Florida, that was damaged during a storm by a fallen tree from neighboring CRA Property. In accordance with the Board's 2019 Redevelopment Plan ("Plan") and Florida Statutes 163, the Board will consider the funding, in an amount not to exceed $39,784.34.00 to underwrite the expenditures and costs associated with the temporary relocation of the family and to disburse funds directly to residents or to vendors who assist the resident in relocating and to further negotiate and execute any and all documents necessary to aid in the emergency. All comments and questions with respect to the meeting and remote public participation should be addressed to Jason Walker, Executive Director, at 1401 N. Miami Ave., 2nd Floor, Miami Florida 33136 (305) 679-6868. Should any person desire to appeal any decision of the Board with respect to any matter considered at this meeting, that person shall ensure that a verbatim record of the proceedings is made, including all testimony and evidence upon which any appeal may be based (F.S. 286.0105). In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodations to participate in this proceeding may contact the Office of the City Clerk at (305) 250-5361 (Voice), not later than two (2) business days prior to the proceeding. TTY users may call 711 (Florida Relay Service), not later than two (2) business days prior to the proceeding. Ad No.36445 Todd B. Hannon Clerk of the Board Attachment: 8994 Notice to the Public (8994 : 4/5ths Emergency Procurement — 1440 NW 1st Avenue, Miami, Florida) Packet Pg. 33 2.4.c tr� Omni C R A 1440 NW 1st Ave. Miami, FL 33136 Reimbursement Date Info Total Meal Reimbursement Furniture Replacement/ Moving cost $ 1,000.00 $ 5,000.00 12/11/2020 12/27/2020 1/27/2021 Relocation cost The Copper Door Bed & Breakfast Extended Stay America Extended Stay America 6,000.00 $ 1,400.14 $ 1,509.97 $ 2,874.23 $ 5,784.34 Demolition of Property TBD New Construction TBD RENT 2/1/2021 Deposit $ 4,000.00 2/1/2021 Feb 2021 Rent $ 2,000.00 3/1/2021 Mar 2021 Rent $ 2,000.00 4/1/2021 Apr 2021 Rent $ 2,000.00 5/1/2021 May 2021 Rent $ 2,000.00 6/1/2021 Jun 2021 Rent $ 2,000.00 7/1/2021 Jul 2021 Rent $ 2,000.00 8/1/2021 Aug 2021 Rent $ 2,000.00 9/1/2021 Sep 2021 Rent $ 2,000.00 10/1/2021 Oct 2021 Rent $ 2,000.00 11/1/2021 Nov 2021 Rent $ 2,000.00 12/1/2021 Dec 2021 Rent $ 2,000.00 1/1/2022 Jan 2022 Rent $ 2,000.00 $ 28,000.00 Jason Jal Executive Director Omni Community Redevelopment Agency Ken Russell, Chairman - Jason Walker, Executive Director 1401 N. Miami Ave Miami, FL 33136 • www.omnicra.com • 305.679.6868. 305.679.6870 PAI D PAI D PAID PAID PAI D PAI D PAID Packet Pg. 34 2.4.d Sec. 18-90. Emergency procurements. In case of emergency, it is not advantageous or practicable for the city to use competitive bidding methods. Therefore, the city may purchase directly those goods or services whose immediate procurement is essential to the life, health, welfare, safety or convenience of the city. Such emergency procurements shall nevertheless be made with such competition as may be practicable under the circumstances. (1) In seeking a waiver of competitive bidding methods for emergency procurements that do not exceed $25,000.00, the head of the using department or office shall submit to the chief procurement officer in writing a full explanation of the circumstances of the emergency and the reasons for selection of a particular firm, along with a list of others which may have been solicited, with an approved requisition by the director of the requesting department. (2) In seeking the waiver of competitive sealed bidding methods for emergency procurements exceeding $25,000.00, the head of the using department or office shall submit to the chief procurement officer and the city manager in writing a full explanation of the circumstances of the emergency and the reasons for selection of a particular firm, along with a list of others which may have been solicited, and certification of fund availability from the director of the department of management and budget. The city manager may then waive competitive sealed bidding requirements after making a written finding, supported by reasons, that an emergency exists. Such finding must be ratified by an affirmative four - fifths vote of the city commission or an unanimous vote of the quorum that exists because of either abstentions or vacancies resulting from resignation, death, suspension, or physical incapacitation at the next available city commission meeting. Notwithstanding anything to the contrary contained in this Code, the city manager may direct the chief procurement officer to purchase directly those goods and/or services required by the urban search and rescue task force when activated to perform its obligations under the existing provisions of the memorandum of understanding with the state and/or the Federal Emergency Management Agency (FEMA). Such emergency procurements shall nevertheless be made with such competition as may be practicable under the circumstances. If necessary, the city manager may waive competitive sealed bidding methods for such emergency procurements, after making a written finding, supported by documentation that the urban search and rescue task force has been officially activated. Such finding and waiver must be ratified by an affirmative four -fifths vote of the city commission or an unanimous vote of the quorum that exists because of either abstentions or vacancies resulting from resignation, death, suspension, or physical incapacitation at the next regularly available city commission meeting for contracts exceeding $25,000.00. (3) All emergency awards shall be filed and maintained by the purchasing department as a permanent and public record of the purchase. (Ord. No. 12271, § 2, 8-22-02; Ord. No. 13170, § 2, 5-13-10) (Supp. No. 9, Update 1) Created: 2021-03-29 16:17:53 [EST] Page 1 of 1 Packet Pg. 35 1440 NW 1st Ct. - Emergency Procurement Photos 2.4.e 1440 NW 1st Ct. - Emergency Procurement Photos 2.4. e 1440 NW 1st Ct. - Emergency Procurement Photos 2.4. e OMNI Board of Commissioners Meeting September 13, 2021 2.5 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Ken Russell and Members of the CRA Board From: Jason Walker Executive Director Date: September 3, 2021 File: 10631 Subject: 14th Street LLC Grant Agreement Enclosures: 10631 NR 14th Street Proposal 10631 Notice to the Public 10631 Bid Waiver Memo BACKGROUND: The Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the 2019 CRA Redevelopment Plan ("Plan"). On September 13, 2016, the CRA approved and adopted Resolution No. CRA-R-16-0042, adopting the City of Miami's procurement ordinance as the process in which any and all services and goods are procured by the CRA. 14th Street Developments LLC, a subsidiary of NR Investments, Inc., ("NR Investments"), submitted a grant proposal request to the CRA requesting the amount of $15,000,000.00 to underwrite a portion of the costs to develop a mixed -use project within the Omni CRA. NR Investments, a for profit entity, possesses a unique approach to this mixed -use development project consisting of ground floor retail and approximately 398 units of income -restricted housing. The principals of NR Investments have a history of successful development housing units in Miami -Dade County. This is a new way in which local government entities can collaborate and have a truly successful project that meets the needs of the community. JUSTIFICATION: Chapter 4 of the 2019 Amendment to the Omni CRA Redevelopment Plan reaffirms the importance of the development of affordable housing to the economic vitality of the CRA. With regard to projects assisted by the CRA (from which it accepts projects it seeks to support to provide workforce, low, or very -low income housing), it identifies among its community benefits priorities the "inclusion of an appropriate amount of below -market rate units," specifically workforce housing units (at less than 140% AMI) and units for low-income residents (less than 80% AMI). This project is consistent with Florida Statute 163, and also the goals and objectives Packet Pg. 39 2.5 of the 2019 Omni CRA Redevelopment Plan. The rates will remain in place until the anticipated extension of life of the Omni CRA to 2047. On page 4-32 of the amended Redevelopment Plan, the CRA has noted that housing affordability is one of the key programs for the CRA to undertake. A thriving community is one where residents in all phases of life with varying types of employment can live in one area. To that end, the CRA outlined the following programmatic methods it can employ to increase the supply of affordable housing: To Assist For -Profit Housing Providers in the CRA could: 2) Pay some portion of development costs such as impact or permit fees 3) Provide a direct cash subsidy in the form of a rebate equal to a percentage of the increases in taxes paid over a defined period of time after completion if affordable units are provided In addition to the above programmatic methods to expand the supply of affordable housing, the CRA has identified the following goal on page 5-56 of the Redevelopment Plan: 6) Housing Affordability - The CRA should fund established and creative new ways to increase the stock of workforce and lower income affordable housing within the district. GOALS: a) Create project -specific developer incentives to ensure that new or significantly redeveloped residential projects in the CRA contain a sufficient number of units that are affordable to the target populations. The 14th Street Development LLC proposal submitted will develop the group of properties with the following addresses at 1441, 1445 & 1455 N. Miami Avenue, 25 & 31 N.E. 14th Street, and 1412, 1418, 1428 & 1432 N.E. Miami Court, Miami, Florida within the Omni CRA and now requests grant and TIF funding to underwrite a portion of the costs. RECOMMENDATION: It is recommended that the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency ("Omni CRA") approve and adopt the attached Resolution, authorizing the execution of a Grant agreement for an amount not to exceed $15,000,000.00 with 14th Street Development LLC, a subsidiary of NR Investments, Inc., ("Developer") for the development of this mixed -use development project consisting of ground floor retail and approximately 398 units of income -restricted housing. FUNDING: Subject to the availability of funds and subject to the Omni CRA being able to successfully secure funding for the project. City of Miami Page 2 of 4 File ID: 10631 (Revision:) Printed On: 9/4/2021 Packet Pg. 40 2.5 Omni CRA City of Miami Legislation OMNI CRA Resolution OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 10631 Final Action Date: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE EXECUTIVE DIRECTOR'S RECOMMENDATION AND FINDING THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS PURSUANT TO SECTIONS 18-85 AND 18-86 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AS ADOPTED BY THE CRA; WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CRA; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN AGREEMENT WITH SUPPORTING DOCUMENTS ALLOCATING GRANT FUNDS OF $15,000,000.00 FOR A MIXED -USE DEVELOPMENT PROJECT OF PROPERTIES LOCATED 1441, 1445, AND 1455 N. MIAMI AVENUE, 25 AND 31 N.E. 14TH STREET, AND 1412, 1418, 1428, AND 1432 N.E. MIAMI COURT, MIAMI, FLORIDA WITHIN THE REDEVELOPMENT AREA, IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, SUBJECT TO THE CRA BEING ABLE TO SUCCESSFULLY SECURE FINANCING AND SUBJECT TO THE AVAILABILITY OF FUNDS. WHEREAS, the Omni Redevelopment District Community Redevelopment Agency ("CRA") is tasked with reducing slum and blight within its boundaries; and WHEREAS, on September 13, 2016, the CRA approved and adopted Resolution No. CRA-R-16-0042, adopting the City of Miami's procurement code as the process in which any and all services and goods are procured by the CRA; and WHEREAS, 14th Street Development LLC, a subsidiary of NR Investments, Inc., a for profit entity ("Grantee"), submitted a request for grant funding to develop a mixed -use project consisting of ground floor retail, office space, and approximately 398 income -restricted housing units within the CRA's boundaries; and WHEREAS, page 4-23 of the 2019 Amendment to the CRA's Redevelopment Plan ("Plan") reaffirms the importance of the development of affordable housing to the economic vitality of the CRA and identifies among its community benefits priority for the "inclusion of an appropriate amount of below -market rate units," specifically workforce housing units (at less than 140% AMI) and units for low-income residents (less than 80% AMI); and WHEREAS, page 4-33 of the Plan states "To assist for -profit housing providers in the CRA could:... 3) Provide a direct cash subsidy in the form of a rebate equal to a percentage of the increases in taxes paid over a defined period of time after completion if affordable units are provided.... [and] 5) Grant funds to assist in rehabilitation of an existing housing project":; and WHEREAS, the Grantee's proposal is to complete a mixed -use development of properties at 1441, 1445, and 1455 N. Miami Avenue, 25 and 31 N.E. 14th Street, and 1412, City of Miami Page 3 of 4 File ID: 10631 (Revision:) Printed On: 9/4/2021 Packet Pg. 41 1418, 1428, and 1432 N.E. Miami Court, Miami, Florida within the CRA's boundaries ("Project"), and 2.5 WHEREAS, the Grantee now requests grant funding for the development of the Project in the amount of $15,000,000.00; and WHEREAS, the success of the Project will result in accomplishing the stated objectives of the Redevelopment Plan; and WHEREAS, based on the recommendation and findings of the Executive Director, it is in the CRA's best interest to authorize, by an affirmative four -fifths (4/5ths) vote, a waiver of competitive sealed bidding procedures pursuant to Sections 18-85 and 18-86 of the Code of the City of Miami, Florida, as amended ("City Code"), as adopted by the CRA, to authorize the Executive Director to negotiate and execute any and all agreements, all in forms acceptable to the General Counsel, with the Grantee for the provision of grant funds for the Project in the amount of $15,000,000.00; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble of the Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. By a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, the Executive Director's recommendation and written findings pursuant to Sections 18-85 and 18-86 of the City Code, as adopted by the CRA, are ratified, approved, and confirmed and the requirements for competitive sealed bidding methods as not being practicable or advantageous to the CRA are waived. Section 3. The Executive Director is authorized to negotiate and execute any and all documents necessary, all in forms acceptable to the General Counsel, with the Grantee to provide a portion of the costs associated with the Project in the amount of $15,000,000.00 in the form of a forgivable loan, subject to a covenant being recorded on the property restricting the rents until 2047, the CRA being able to secure financing, and the availability of funds. Section 4. Funding for this project is subject to the CRA being able to successfully secure financing to underwrite the costs as requested. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: VICTORIA MENDEZ, GENERAL COUNSEL City of Miami Page 4 of 4 File ID: 10631 (Revision:) Printed On: 9/4/2021 Packet Pg. 42 2.5.a c„ M R RATIONALE FOR CRA SUPPORT 14th Street Apartments Project Housing Affordability Miami's Downtown and Greater Downtown skylines are pictures of construction, as new condos and apartments are built throughout our burgeoning City. But the expansion experienced in the last and current real estate cycles is misleading as the City faces one of the nation's most severe crisis of housing unaffordability stemming from the dual problem of high housing costs and comparably low wages. Today, Greater Miami's housing stock suffers from a significant supply mismatch. The local market has a glut of expensive housing and not nearly enough affordable housing. While we have seen the construction of expensive condos to the point of over -supply, not nearly enough affordable and workforce housing has been built to meet market's demand. While thousands of new housing units have been developed within the City, including thousands within the CRA alone, most of the units built are market -rate or high -end luxury units. The COVID-19 pandemic as well as the expected economic recovery that will follow successful vaccination campaigns, combined with current trends towards increased remote work, threatens to exacerbate the City's housing unaffordability issues, as growing numbers of high -income workers and wealthy out-of-state residents relocate to Miami in search of its unique urban amenities and "destination city" status. The prospect of companies moving to Miami or opening offices in the City, in an effort to lure skilled workers and/or take advantage of state and local tax and regulatory advantages, while a very welcoming development, could certainly compound existing problems around scarcity and unaffordability in housing. Today, the Miami -Fort Lauderdale metro is already one of the least affordable large metro areas in the country, measured in terms of median -wage work hours needed to pay average monthly rent: at 87.1 hours, it ranks higher than San Francisco -Oakland (73.4 hours), Austin -Round Rock (70.4), New York - Newark (69.4 hours) and Boston -Cambridge (67.0 hours), among others. The combination of relatively high average rents with relatively low median wages is, in a nutshell, the central dynamic of the City's unaffordability crisis. According to the Affordable Housing Blueprint: Needs Assessment crafted by the Jorge M. Perez Metropolitan Center at Florida International University (FIU), "the most serious problem in Miami -Dade County is the estimated 251,732 renter households who are cost -burdened and the 140,062 renter households who are `severely' cost -burdened. The significant growth of severely cost -burdened renters is the most pressing problem due to three market conditions: 1) the increasing demand for renter housing throughout the County resulting in low vacancy rates and spiraling increases in rent prices, 2) the lack of affordable rental housing production, and 3) rent prices are increasing much faster than wages." Furthermore, "[...] the vast preponderance of County workers earn wages in service sector occupations, including retail trade, leisure and hospitality, and educational and health services. The household incomes of these service sector workers limit housing choices to affordable rental housing opportunities, where available." The problem is compounded, moreover, by the fact that, historically, the City's economy "[...] has shown it can shed higher wage jobs very quickly but has shown resistance to adding new high -skill, higher -paying jobs." Currently, already six in 10 employed adult residents of Greater Miami are housing cost -burdened, meaning they spend more than 30 percent of their incomes on housing — the highest rate of any large metropolitan area in the nation. Racial and ethnic minorities, as well as our community's low-income service workers, shoulder a disproportionate share of the burden of today's housing crisis. The following facts provide chilling insight into the scope and impact of the current crisis: 1 Packet Pg. 43 2.5.a N R 14th Street Apartments Project • About 49% of Miami -Dade County's households are renters. Between 2012 and 2017, the County has seen its proportion of renter households grow by 11.4%, or nearly 2% annually. Miami, in particular, has become a city of renters: the City's homeownership rate, at 30%, is the lowest among large cities in the U.S. • Miami's renter population is disproportionately African American and Hispanic with 55% of black households and 48% of Hispanic households renting, compared with just over 25% of white households. • Greater Miami's median rents are increasingly unaffordable. As of October 2018, the median rent for Greater Miami was $2,095 — the eighth highest in the nation behind communities like Denver, Portland, Dallas and Austin. Said median rent requires an annual household income of not less than $83,800 for such rent to be "affordable" or for the household not to be "cost -burdened." • Miami's low-income service class — workers in low -skill jobs like retail, hospitality, food service and home care which make-up more than 50 percent of the region's workforce — is severely cost -burdened. Miami's service class faces the greatest rental cost burdens among all classes with just under $11,000 in annual income left -over after paying rent — the 5th worst rate among large metropolitan areas in the nation. • At the same time, an estimated 45% of the jobs created in the City from now through 2024 will be in occupations with a median annual income less than $35,000 per year: meanwhile, more than 9 out of 10 (90.9%) of renters in Greater Miami earning less $35,000 annually are cost -burdened. • Miami, in particular, has the highest proportion of cost -burdened renters in the nation by a significant margin. More than half of renters (62.4%) spend 35 percent or more of their household income on rent. Moreover, 32% of all renter households are "severely" cost -burdened — paying an excess of 50 percent of their incomes on housing costs. Greater Miami's renters have the least amount of money left over after paying for housing of any large metro: Miami's renters have, on average, less than $16,000 left over after paying their rent, far less than the $30,000 or so in take-home income that renters in Washington, D.C. and Boston have left over after paying for their housing. Crucially, though, despite the bleak picture, Miami has a lot of gains to reap by increasing the stock of affordable housing, gains that are broader than strictly dealing with housing scarcity and unaffordability. As stated in FIU's Miami Affordable Housing Master Plan, "affordable housing has broad -based economic growth impacts. As families keep more of their income, they drive greater local spending which in turn stimulates high -wage job creation, increased tax revenue, and lower public costs for health, human services and policing." Conversely, "keeping housing costs as a reasonable percentage of family income promotes higher educational attainment and improves family health outcomes, as families have more money to spend on education and health costs." It is clear that "improved affordability promotes inclusive economic growth". "Housing affordability can be a potent tool for improving economic performance, driving employment growth, productivity, wages, business development, and retaining and attracting high -skilled, educated workers to the region." "The cumulative economic impacts of greater, more widespread housing affordability would be a major boost to developing a more diversified, higher income City economy." "Affordable housing is [...J critical to Miami -Dade County's economic resilience [...J" NRINVESTMENTS.COM 2 Packet Pg. 44 2.5.a Ha 14th Street Apartments Project CONSISTENCY WITH CRA REDEVELOPMENT PLAN Chapter 4 of the CRA proposed amendment to the Redevelopment Plan (2019) reaffirms the importance of the development of affordable housing to the economic vitality of the CRA. With regard to projects assisted by the CRA (from which it accepts projects it seeks to support to provide workforce, low, or very -low income housing), it identifies among its community benefits priorities the "inclusion of an appropriate amount of below -market rate units," specifically workforce housing units (at less than 140% AMI) and units for low-income residents (less than 80% AMI). Among the policy reasons articulated for such community benefits requirement are: (i) preservation of the affordability of the neighborhood; (ii) prevention of existing resident displacement; and (iii) provide area workers an opportunity to live near work. On page 4-32 of the amended Redevelopment Plan, the CRA has noted that housing affordability is one of the key programs for the CRA to undertake. A thriving community is one where residents in all phases of life with varying types of employment can live in one area. To that end, the CRA outlined the following programmatic methods it can employ to increase the supply of affordable housing: To Assist For -Profit Housing Providers in the CRA could: 2) Pay some portion of development costs such as impact or permit fees 3) Provide a direct cash subsidy in the form of a rebate equal to a percentage of the increases in taxes paid over a defined period of time after completion if affordable units are provided. In addition to the above programmatic methods to expand the supply of affordable housing, the CRA has identified the following goal on page 5-56 of the Redevelopment Plan: 6) Housing Affordability — The CRA should fund established and creative new ways to increase the stock of workforce and lower income affordable housing within the district. GOALS: a) Create project -specific developer incentives to ensure that new or significantly redeveloped residential projects in the CRA contain a sufficient number of units that are affordable to the target populations. The Project and accompanying request seek financial support from the CRA to underwrite the development of residential units, specifically for low-income and workforce households, and asks the CRA to provide the Applicant with a project -specific incentive. NRINVESTMENTS.COM 3 Packet Pg. 45 2.5.a N R 14th Street Apartments Project PROJECT DESCRIPTION The Developer proposes to enter into a public -private partnership with the CRA to advance the CRA's goal of developing much needed affordable and workforce housing units within the redevelopment area. Applicant proposes to construct a 35-story tower on land it purchased over the course of the last four years which will consist of a mixed -use project comprised of the following elements: (i) 398 multi -family residential units; and (ii) approximately 9,000 sq. ft. of ground floor commercial use (the "Project"). Applicant proposes to assist the CRA in advancing its Redevelopment Plan goal by restricting rents for ALL of the 398 residential units within the Project through the life of the CRA as outlined herein below. The rent restrictions proposed will ensure that the Developer make residential units available to low-income households and households who can afford "workforce" rents, more specifically teachers, police officers, firefighters, nurses, first responders, and recent college graduates, among other professions. The Project represents the Developer's latest investment in the Omni "Arts + Entertainment District" — a dynamic urban residential neighborhood connecting the CRA & Downtown Miami with the Wynwood Arts District and the Design District. With the surrounding expansion, the Arts + Entertainment District has seen growth in its residential, culinary, entertainment and nightlife offerings, but substantial land remains undeveloped and a number of buildings remain dilapidated within the district evidencing the continued "slum & blight conditions" within the CRA. Applicant's CANVAS project, an art -inspired condominium offering a "bohemian luxe" lifestyle immersed in the local art, culinary & cultural scene, has served to anchor the district's ascendant trajectory. Beyond its project investments within the redevelopment area, NR Investments, Inc., has invested approximately $2 million in efforts to beautify the Arts & Entertainment District, attract new businesses and retailers to the area, and deliver high -quality arts, music and community programming, including "The Miami Flea," a pop- up market, and a "Moonlight Grooves," a music series held on CANVAS's backyard, among others. Given the Project's location just north of Downtown Miami, it is conveniently accessible via multiple modes of transit, including: (i) the MetroMover via the "School Board Station" on N.E. 15th Street; (ii) the City's free trolley system; and (iii) Virgin Trains' service at Grand Central Station. The inclusion of the proposed affordable and workforce dwelling units in the Project will provide residents convenient access to employment opportunities via mass transit servicing greater Downtown Miami area and portions of the South Florida region via inter -city passenger rail service. Illustrative Project rendering enclosed as Exhibit "A". NRINVESTMENTS.COM 4 Packet Pg. 46 2.5.a REQUESTED PROJECT SUPPORT 14th Street Apartments Project Applicant's request assumes the approval of an extension of the term of the CRA through 2047 and obligations of the Applicant and CRA pursuant to an Incentive Agreement would be conditioned upon the passage of such an extension. With the clarification, Applicant proposes the following development restrictions and makes the following request of the CRA to assist the Project: • Proposed Residential Restrictions: Applicant proposes to rent -restrict 398 residential dwelling units — 27 studio dwelling units, 300 one -bedroom dwelling units and 71 two -bedroom dwelling units — as set forth in the "Project Information Sheet" attached hereto as Exhibit "B." Said rent -restrictions will be remain in place from the date the Residential portion of the Project is placed in-service (as evidenced by the issuance of a temporary certificate of occupancy or certificate of occupancy for a residential dwelling unit) through the date of the CRA's expiration (2047). The Applicant will be permitted to adjust the maximum rent per unit for each unit type consistent with the rate schedule adopted by the Corporation for "Multifamily Rental Programs" for Miami -Dade County. The Developer will impose a Covenant setting forth the rent restrictions and the minimum number of rent -restricted units by type. The Covenant shall grant the enforcement rights to the CRA through the term of its existence. • Requested Financial Support: Applicant requests partial loss reimbursement of $15.0 million, along with a rebate of 95% of the TIF collected by the Omni CRA from the Project. Developer anticipates that the rebated tax increment generated by the Project will amount to approximately $13.6 million in gross receipts, or approximately $8.7 million in present value. The partial loss reimbursement and TIF receipts will be used to offset the estimated $38.0 million in gross economic loss (in the 2047 scenario). Moreover, the project foresees around $4_3 million in estimated permit fees, water & sewer connection charges, and impact fees to be assessed at the initiation of the Project. See Exhibit "C" attached hereto. Construction costs have increased significantly in the last year, reflecting higher costs of materials and labor alike. The sharp post COVID-19 economic rebound, coupled with unprecedented public sector relief and stimulus outlays, are expected to create supply-side and labor bottlenecks, which threaten to exacerbate and prolong upward price pressures. The requested fmancial support will significantly help to offset these factors. ii The value of the requested financial support —partial loss reimbursement of $15.0 million and TIF rebate in the amount of $8_7 million in present value— is still substantially lower than the value of the losses generated by the rent and use restrictions detailed above: $38.0 million. This is without including the project's approximately $4.3 million in estimated permit and impact fees. The calculation of rent and use losses assumes that market rent prices will grow at a conservative rate of 3.00% per year. That being said, the specific area where the project is located is undergoing —and has, in fact, been experiencing for years— rapid growth and redevelopment, in the larger context of a City which expects to continue expanding its population and urban core. Therefore, it is not at all unreasonable to anticipate that market rates will increase at a much higher pace, which would, in turn, cause an even greater loss in rents due to the restrictions in place. In other words, the project's financial projections may very well be underestimating the losses generated by the rent restrictions. iv. The future resale/refinance value of the building, which is calculated on a cash flow basis, is also substantially diminished by the rent restrictions, by as much as $46,314,638, based on a standard market cap of 5.00%. NRINVESTMENTS.COM 5 Packet Pg. 47 2.5.a 14th Street Apartments Project In sum, applicant deems that the project's present value losses and increased construction costs easily exceed the support sought, with even conservative estimates of market rents growth during the period. NRINVESTMENTS.COM 6 Packet Pg. 48 2.5.a iZ 14th Street Apartments Project APPLICANT EXPERIENCE & QUALIFICATIONS 14th Street Development LLC, is a subsidiary of NR Investments, Inc. ("NR"), a privately held real estate investment company. Each of the company's principals and senior executives has extensive experience in real estate capital markets, acquisition, asset management, development, construction and risk management. NR believes in fostering cultural movements and communities in undiscovered areas, and in making their buildings the beacons of their renaissance. E NR specializes in acquiring developing, repositioning, and managing real estate assets in major markets Q throughout the world. The company has acquired more than 10 million square feet of office and residential space 4▪ , across the globe. Over the past 18 years, NR has purchased, developed, repositioned and sold over $700 million of multifamily and commercial real estate assets. U Recent Development Experience • Filling Station Lofts: In January 2013, NR stepped into Miami's Omni / Arts & Entertainment District with the acquisition and subsequent completion of Filling Station Lofts, an 81-unit loft -style apartment building. v • CANVAS Condominiums: In November 2013, NRI closed on the 1.07-acre CANVAS condominium site. NR constructed a 37-story, 513-unit residential condominium tower that received its fmal certificate of co occupancy (C.O.) at the end of 2018, and was delivered in 2019. is Qualifications of Principals c L • Nir Shoshani — Principal. Prior to forming NR in 2001, Mr. Shoshani held the title of President at TiS a r. America, Inc., a subsidiary of Top Image Systems Ltd. (NASDAQ: TiSA), a publicly traded, high-tech i firm headquartered in Israel with operations around the globe. Mr. Shoshani is a graduate of the Belgrano School of Business in Buenos Aires. .c • Ron Gottesmann — Principal. Prior to forming NR in 2001, Mr. Gottesmann worked as a mortgage broker overseeing the operation of GFI Mortgage Bankers Inc. of New York. With Mr. Shoshani, Mr. Gottesmann Z leads NR which today is a fully integrated development firm which owns and manages a wide variety of co real estate, including large scale office buildings, commercial shopping centers, and multi -family housing. Under Mr. Gottesmann's leadership, the firm has maintained a consistent focus on property repositioning via the acquisition of underperforming buildings in high visibility locations rehabilitating them to their full a) potential through extensive renovation and management restructuring. E • Terry Wellons — C.O.O. Mr. Wellons serves as the Chief Operating Officer at NR. He leads the United States team directing a group of highly experienced attorneys, accountants and portfolio and property managers. He has a background in finance and as a real estate attorney, serves as lender's counsel and representing buyers and sellers of real estate, aids NR in each aspect of NR's business, effectively negotiating and gauging the legal and financial risks involved with each transaction. Mr. Wellons holds a degree in fmance from Florida International University and a law degree from Nova Southeastern University, NRINVESTMENTS.COM 7 Packet Pg. 49 2.5.a M R 14th Street Apartments Project ExxrmIT "A" PROJECT RENDERING NRINVESTMENTS.COM 8 Packet Pg. 50 2.5.a NA Developer/Applicant: Contact Person: Telephone: E-mail: Project Address: 14th Street Apartments Project EXHIBIT "B" Omni CRA Tax Increment Recapture Agreement Project Information Sheet 14th Street Development LLC Terry Wellons, C.O.O. (305) 625-0949 terry@minvestments.com nrinvestments.com 1441, 1445 & 1455 N. Miami Avenue, 25 & 31 N.E. 14th Street, and 1412, 1418, 1428 & 1432 N.E. Miami Court, Miami, Florida Property Information Prior Year Taxable Values Folio Numbers Existing Building Size Lot Size 2019 2018 2017 01-3136-005-1110 0 sq. ft. 7,600 sq. ft. $1,333,420 $1,212,200 $1,102,000 01-3136-005-1070 0 sq. ft. 11,400 sq. ft. $1,875,630 $1,705,119 $1,550,109 01-3136-005-1060 929 sq. ft. 5,700 sq. ft. $874,463 $794,967 $722,698 01-3136-005-1180 0 sq. ft. 3,355 sq. ft. $551,489 $501,354 $486,475 01-3136-005-1151 _ 0 sq. ft. 5,000 sq. ft. $821,892 $750,000 $679,250 01-3136-005-1150 0 sq. ft. 2,200 sq. ft. $361,632 $328,757 $298,870 01-3136-005-1140 0 sq. ft. 4,200 sq. ft. $690,389 $627,627 $570,570 01-3136-005-1130 0 sq. ft. 4,200 sq. ft. $690,389 $627,627 $570,570 01-3136-005-1090 0 sq. ft. 6,300 sq. ft. $1,035,584 $941,440 $855,855 Total: 929 sq. ft. , 49,955 sq. ft. $8,234,888 $7,489,091 $6,836,397 Type of Project: Construction Commencement: Project Construction Completion Date: Project Construction Cost: Estimated Adj. Taxable Value (TIF Basis): Residential Square Footage: Retail Square Footage: Property Acquisition Date: Total Acquisition Cost: Projected Residential Rent (Per Unit Type): Mixed Use (Retail, Multi -Family Residential) June 1st, 2022 October 1st, 2024 $141,414,310 $65,088,738 297,625 sq. ft. +/- 8,706 sq. ft.+/- May 2014 and February 2015 $7,842,000 Studio - $1,747 / 1BD - $2,224/ 2BD- $2,750 NRINVESTMENTS.COM 9 Packet Pg. 51 2.5.a A 14th Street Apartments Project Proposed Affordability Restrictions: 2047 Unit Type Total Units Maximum Rent Studio- 60% AMI 2 $960 Studio- 80% AMI 3 $1,280 Studio- 100% AMI 4 $1,600 Studio- 120% AMI 5 $1,920 Studio- 140% AMI 13 $2,240 1BD- 60% AMI 15 $1,029 1BD- 80% AMI 30 $1,372 1BD- 100% AMI 45 $1,715 1BD- 120% AMI 60 $2,058 1BD- 140% AMI 150 $2,469 2BD- 60% AMI 3 $1,234 2BD- 80% AMI 7 $1,646 2BD- 100% AMI 11 $2,058 2BD- 120% AMI 14 $2,469 2BD- 140% AMI 36 $2,880 Total: 398 - NRINVESTMENTS.COM M to O ra 0 0 a 0 L a Nr LL Z M to O a- d E f4 a - a 10 Packet Pg. 52 2.5.a 14th Street Apartments Project RESIDENTIAL ECONOMIC LOSS ExAiBIT "C" FINANCIAL ANALYSIS 4 5 7 10 11 Tax Years 2026 2027 2028 2029 2030 2031 2032 2033 Annual Rent loss: (51244,820) (51,282,165) (51320,630) (51,360,248) 161,401.056) (51.443388) ($1.486,380) (51,530,972) V718804n lass (524,895,403) 1625,643,292) (526,412.5911 (627,204,968) (228.0211181 (528,861,251) 029,727,604) (530,619,432) Total 12 13 14 15 16 17 18 19 Tax Years 2034 2035 2036 2037 2038 2039 2040 2041 Total Annual Rent lass: ($1,576,901) ($1,624,208) (516T1934) )$1223,122) ($1TT4,816) ($1B26P60) ($1.882,902) (51939,389) ($14A22,331) Valuation lass (531,538,015) 1632.484.155) 633,458,680) (634,462,440) (535,496,313) (536,561,203) (037,658,039) 1638,787,780) 20 21 22 23 24 25 26 27 28 Tax Years 2042 2043 2044 2645 20.2046 2047 202047 Total Annual Rent loss: ($1,992,571) ($2,057,4981 ($2,119,223) 162,181199) ($2,249,283) ($2,315,732) 50 50 • ($12,921106) Valuation tau (539,951,413) ($41,149,956) ($42,384,454) ($43,655,988) ($44,915,968) (546,314,638) 50 60 Weighted AMI Restriction of Bottom 50%0l Units 999096 Total Rent lass: TIF TO DEVELOPER CALCULATION CRA/Developer Retainage: 95% Growth Rate: 1.03 Discount Rate 3% Miami - Municipal Operating Mlamhoade County • Operating MIIIaee Rate Taxable Value(20201 Taxable Value(@ C.O.) Ad). Taxable Value Tax Retelub 1*241 CRATIF:95%) CIA Retained TIF(65%) Coeny Clawbad (35%) 7.4365 $8,700,000 573,788,238 $65,088,738 $484,032 $459,831 52911,890 5160,341 4.6669 68,700,000 $73,788,738 565,088,738 5303.763 $288,575 5187,573 $101,001 Total Receipts: $787,795 5748,405 $486,463 $261.342 Tax Years 2026 2027 2028 2029 2030 2031 2032 2033 Total TIF to 150: 5486,463 $501,057 5516,099 6531,572 5547,519 $563,344 6580,863 5598,289 $4,325,796 TIF to 0e8483e0: $462,140 $476,004 $490,285 $504,993 $520,143 $535,747 $551,820 $568,374 54,103,502 TIF ia Developer(91/(: $410,606 $410,606 $410,606 5410,606 $410,606 5410,506 $410,606 $410,606 $3,284,845 Tax Years 503 2034 2035 6 T203T 2038 2039 2040 2041 Total TIF to CIA: $585,425 $602,986 $621,078 $639,710 $658,902 $678,669 $699,029 6719,999 55,205,800 TIF to Devel0per. 6556,154 $572,839 $590,024 6607,723 $625,956 5644,735 $664,077 6683,999 $4,945,510 TIF to Developer (Mr 5390,075 $390,075 $390,075 $390,075 5390,025 $390,073 $390,075 $330,075 $3,120,603 Tax Years 2042 2043 2044 2045 2046 200 2046 2047 r 0 Total TIF to CRA: $741,599 5763,847 $786,763 $810,366 $834,677 6859,717 $0 50 $0 54,756,969 TIF ta 0e69102931 .704,519 $725,655 5747,425 6769,847 $792,943 $816,731 $0 50 $0 $4,357,121 114to Developer(960(1 5390,075 5390,075 $390,075 $390,075 $390,075 $390,075 50 $0 $0 52,340,452 Total 71FIOCRA: $14,328,565 TIF to Developer: $13,612,137 TIF to Developer )PV): $8,745,900 NRINVESTMENTS.COM 11 Packet Pg. 53 2.5.b ifik• Omni C R A OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY NOTICE OF PUBLIC HEARING The Board of Commissioners ("Board") of the Omni Redevelopment District Community Redevelopment Agency ("CRA") will hold a Public Hearing on Monday, September 13th, 2021, at 9:00 a.m. or anytime thereafter in the City Commission chambers located at Miami City Hall, 3500 Pan American Drive, Miami, FL 33133. The Board will consider the award of grant funds to 14th Street Development LLC, a legal entity authorized to transact business/render services in the State of Florida, to underwrite a portion of the costs associated with the development of a mixed use project consisting of income -restricted housing units in the Omni CRA. In accordance with the Board's 2019 Redevelopment Plan ("Plan") and Florida Statutes 163, the Board will consider the funding, in an amount not to exceed $15,000,000.00 to underwrite the expenditures and costs associated with the development of a mixed use project consisting of income -restricted housing units located within the Redevelopment Area of the Omni CRA at 1441, 1445 & 1455 N. Miami Avenue, 25 & 31 N.E. 14th Street, and 1412, 1418, 1428 & 1432 N.E. Miami Court, Miami, Florida. This funding is critical in the development of the Project, which is envisioned to reduce slum and blight and provide housing affordability in the area. All comments and questions with respect to the meeting and remote public participation should be addressed to Jason Walker, Executive Director, at 1401 N. Miami Ave., 2nd Floor, Miami Florida 33136 (305) 679-6868. Should any person desire to appeal any decision of the Board with respect to any matter considered at this meeting, that person shall ensure that a verbatim record of the proceedings is made, including all testimony and evidence upon which any appeal may be based (F.S. 286.0105). In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodations to participate in this proceeding may contact the Office of the City Clerk at (305) 250-5361 (Voice), not later than two (2) business days prior to the proceeding. TTY users may call 711 (Florida Relay Service), not later than two (2) business days prior to the proceeding. Ad No.36443 Todd B. Hannon Clerk of the Board Attachment: 10631 Notice to the Public (10631 : 14th Street LLC Grant Agreement) Packet Pg. 54 2.5.c Ken Russell Board Chair .40011 Omni CRA INTER -OFFICE MEMORANDUM Jason Walker Executive Director TO: Board Chair Ken Russell and DATE: September 13, 2021 Members of the CRA Board FROM: Jason Walker Executive Director SUBJECT: 4/5ths Bid Waiver to waive competitive negotiation procedures per City Code, authorizing the allocation of Grants funds to 14th Street Development, LLC for a mixed -used development project located within the Omni BACKGROUND: The Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the 2019 CRA Redevelopment Plan ("Plan"). 14th Street Development LLC, a subsidiary of NR Investments, Inc., ("Developer") submitted a grant proposal request and a Tax Increment Rebate request to the CRA requesting the amount of $15,000,000.00 in grant assistance and 95% of the available developmental Tax Increment (TIF) collected by the Omni CRA to underwrite a portion of the costs to develop a mixed -use project within the Omni CRA. NR Investments, a for -profit entity, possesses a unique approach to this mixed -use development project that will consist of ground floor retail, ground floor commercial space and approximately 398 units of income -restricted housing. The project is estimated to cost approximately $141 Million. The developer will commence construction by June 1, 2022, and substantially complete by October 1, 2024. This proposal anticipates the CRA will be extended through 2047 and as such rents will be restricted until 2047. This proposal is dependent on the successful extension of life and This project also presents a unique approach and opportunity for a local government entity to collaborate on a below -market housing project. This is a way in which local government entities are able to enhance Tax Increment Financing dollars and add equity to fill the gap in financing to achieve housing affordability in the area. OMNI COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI 1401 N. Miami Ave' 2"d Floor' Miami, FL 33136 Tel (305) 679 68681 http://www.miami-cra.org/ Packet Pg. 55 2.5.c RECOMMENDATION In light of the above -mentioned background information, the Grantee's past business successes and the CRA's identified objectives in the CRA's plan to reduce slum and blight, and in consideration of the Executive Director's pledge to allocate grant funding to further the Plan and activate the area, the approval of a bid waiver is recommended. OMNI COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI 1401 N. Miami Ave' 2nd Floor' Miami, FL 33136 Tel (305) 679 68681 http://www.miami-cra.org/ Packet Pg. 56 OMNI Board of Commissioners Meeting September 13, 2021 2.6 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Ken Russell and Members of the CRA Board From: Jason Walker Executive Director Date: September 2, 2021 File: 10633 Subject: NR 14th Street TIF Enclosures: 10633 NR 14th Street Proposal BACKGROUND: The Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the 2019 CRA Redevelopment Plan ("Plan"). 14th Street Development LLC, a subsidiary of NR Investments, Inc., ("Developer") submitted a grant proposal request and a Tax Increment Rebate request to the CRA requesting the amount of $15,000,000.00 in grant assistance and 95% of the available developmental Tax Increment (TIF) collected by the Omni CRA to underwrite a portion of the costs to develop a mixed -use project within the Omni CRA. NR Investments, a for -profit entity, possesses a unique approach to this mixed -use development project that will consist of ground floor retail, ground floor commercial space and approximately 398 units of income -restricted housing. The project is estimated to cost approximately $141 Million. The developer will commence construction by June 1, 2022 and substantially complete by October 1, 2024. This proposal anticipates the CRA will be extended through 2047 and as such rents will be restricted until 2047. This Project is dependent on the extension of life of the CRA. This project also presents a unique approach and opportunity for a local government entity to collaborate on a below -market housing project. This is a way in which local government entities are able to leverage Tax Increment Financing dollars and fill the gap in financing to achieve housing affordability in the area. RECOMMENDATION: It is recommended that the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency ("Omni CRA") approve and adopt the attached Resolution, authorizing the execution of an economic incentive agreement with 14th Street Development LLC, a subsidiary of NR Investments, Inc., ("Developer") for Packet Pg. 57 the development of this mixed -use development project consisting of ground floor retail and approximately 398 units of income -restricted housing. 2.6 JUSTIFICATION: Chapter 4 of the 2019 Amendment to the Omni CRA Redevelopment Plan reaffirms the importance of the development of affordable housing to the economic vitality of the CRA. With regard to projects assisted by the CRA (from which it accepts projects it seeks to support to provide workforce, low, or very -low income housing), it identifies among its community benefits priorities the "inclusion of an appropriate amount of below -market rate units," specifically workforce housing units (at less than 140% AMI) and units for low-income residents (less than 80% AMI). This project is consistent with Florida Statute 163, and also the goals and objectives of the 2019 Omni CRA Redevelopment Plan. The rates will remain in place until the anticipated extension of life of the Omni CRA to 2047. On page 4-32 of the amended Redevelopment Plan, the CRA has noted that housing affordability is one of the key programs for the CRA to undertake. A thriving community is one where residents in all phases of life with varying types of employment can live in one area. To that end, the CRA outlined the following programmatic methods it can employ to increase the supply of affordable housing: To Assist For -Profit Housing Providers in the CRA could: 2) Pay some portion of development costs such as impact or permit fees 3) Provide a direct cash subsidy in the form of a rebate equal to a percentage of the increases in taxes paid over a defined period of time after completion if affordable units are provided In addition to the above programmatic methods to expand the supply of affordable housing, the CRA has identified the following goal on page 5-56 of the Redevelopment Plan: 6) Housing Affordability - The CRA should fund established and creative new ways to increase the stock of workforce and lower income affordable housing within the district. GOALS: a) Create project -specific developer incentives to ensure that new or significantly redeveloped residential projects in the CRA contain a sufficient number of units that are affordable to the target populations. The Project and accompanying request seek financial support from the CRA to underwrite the development of residential units, specifically for low-income and workforce households, and asks the CRA to provide the Applicant with a project -specific incentive. The 14th Street Development LLC proposal submitted will develop the group of properties with the following addresses at 1441, 1445 & 1455 N. Miami Avenue, 25 & 31 N.E. 14th Street, and 1412, 1418, 1428 & 1432 N.E. Miami Court, Miami, Florida within the Omni CRA and now requests grant and TIF funding to underwrite a portion of the costs. City of Miami Page 2 of 4 File ID: 10633 (Revision:) Printed On: 9/4/2021 Packet Pg. 58 Of i -we ilk Omni CRA City of Miami Legislation OMNI CRA Resolution OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 10633 Final Action Date: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CRA TO REBATE TO 14TH STREET DEVELOPMENT LLC, A FLORIDA LIMITED LIABILITY CORPORATION ("GRANTEE"), THE TAX INCREMENT FINANCE ("TIF") REVENUES GENERATED ONLY FROM THE DEVELOPMENT BY THE GRANTEE OF THE 14TH STREET APARTMENT PROJECT ("PROJECT") IN AN AMOUNT NOT TO EXCEED 95% OF THE AVAILABLE DEVELOPMENT TIF COLLECTED FROM THE PROJECT ANNUALLY OR $816,731 ANNUALLY, WHICHEVER IS LESS, PER YEAR UNTIL 2047 IF THE LIFE OF THE CRA IS EXTENDED TO 2047, FOR A TOTAL AMOUNT NOT TO EXCEED $13,600,000.00 WITH PAYMENT TO BEGIN UPON SUBSTANTIAL COMPLETION AND THE PROJECT RECEIVING A CERTIFICATE OF OCCUPANCY, SUBJECT TO THE RENTS BEING RESTRICTED UNTIL 2047 IF THE LIFE OF THE CRA IS EXTENDED TO 2047; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, ALL IN A FORMS ACCEPTABLE TO GENERAL COUNSEL. WHEREAS, the Omni Redevelopment District Community Redevelopment Agency ("CRA") is tasked with reducing slum and blight within its Redevelopment Area; and WHEREAS, 14th Street Development LLC, a subsidiary of NR Investments, Inc., a for profit entity ("Developer"), submitted a request for tax increment rebate to underwrite a portion of the costs to develop a mixed -use project consisting of approximately 9,000 square feet of ground floor retail and approximately 398 rent -restricted housing units at the properties located at 1441, 1445, and & 1455 N. Miami Avenue, 25 and 31 N.E. 14th Street, and 1412, 1418, 1428, and 1432 N.E. Miami Court, Miami, Florida within the Redevelopment Area (collectively, "Project"); and WHEREAS, page 4-23 of the 2019 Amendment to the CRA's Redevelopment Plan ("Plan") reaffirms the importance of the development of affordable housing to the economic vitality of the CRA and identifies among its community benefits the priority for the "inclusion of an appropriate amount of below -market rate units," specifically workforce housing units (at less than 140% AMI) and units for low-income residents (less than 80% AMI); and WHEREAS, page 4-33 of the Plan states "To assist for -profit housing providers in the CRA could:... 3) Provide a direct cash subsidy in the form of a rebate equal to a percentage of the increases in taxes paid over a defined period of time after completion if affordable units are provided.... [and] 5) Grant funds to assist in rehabilitation of an existing housing project;" and WHEREAS, the Executive Director is requesting authority to provide the Developer with Tax Increment Finance Rebate only from Tax Increment Funds ("TIF") received from the Project from the CRA in an amount not to exceed 95% or $816,731.00, whichever is less, per year until 2047 if the life of the CRA is extended, in a total aggregate amount not to exceed $13,600,000.00, to be paid beginning upon substantial completion of the Project and the Project City of Miami Page 3 of 4 File ID: 10633 (Revision:) Printed On: 9/4/2021 2.6 Packet Pg. 59 receiving a certificate of occupancy, subject to a covenant being recorded on the property restricting the rents until 2047; and 2.6 WHEREAS, the success of the Project will result in accomplishing the stated objectives of the Plan; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble of the Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. The Executive Director is authorized to provide the Developer with Tax Increment Finance Rebate from the Development TIF from the CRA in an amount not to exceed 95% or $816,731.00, whichever is less, per year until 2047 if the life of the CRA is extended to 2047, in a total aggregate amount not to exceed $13,600,000.00, to be paid beginning upon substantial completion of the Project and the Project receiving a certificate of occupancy, subject to a covenant being recorded on the property restricting the rents until 2047 if the life of the CRA is extended to 2047, to underwrite a portion of the costs associated with the Project. Section 3. The Executive Director is authorized to negotiate and execute any and all documents, all in forms acceptable to the General Counsel, for the purposes stated herein. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: VICTORIA MENDEZ, GENERAL COUNSEL City of Miami Page 4 of 4 File ID: 10633 (Revision:) Printed On: 9/4/2021 Packet Pg. 60 2.6.a c„ M R RATIONALE FOR CRA SUPPORT 14th Street Apartments Project Housing Affordability Miami's Downtown and Greater Downtown skylines are pictures of construction, as new condos and apartments are built throughout our burgeoning City. But the expansion experienced in the last and current real estate cycles is misleading as the City faces one of the nation's most severe crisis of housing unaffordability stemming from the dual problem of high housing costs and comparably low wages. Today, Greater Miami's housing stock suffers from a significant supply mismatch. The local market has a glut of expensive housing and not nearly enough affordable housing. While we have seen the construction of expensive condos to the point of over -supply, not nearly enough affordable and workforce housing has been built to meet market's demand. While thousands of new housing units have been developed within the City, including thousands within the CRA alone, most of the units built are market -rate or high -end luxury units. The COVID-19 pandemic as well as the expected economic recovery that will follow successful vaccination campaigns, combined with current trends towards increased remote work, threatens to exacerbate the City's housing unaffordability issues, as growing numbers of high -income workers and wealthy out-of-state residents relocate to Miami in search of its unique urban amenities and "destination city" status. The prospect of companies moving to Miami or opening offices in the City, in an effort to lure skilled workers and/or take advantage of state and local tax and regulatory advantages, while a very welcoming development, could certainly compound existing problems around scarcity and unaffordability in housing. Today, the Miami -Fort Lauderdale metro is already one of the least affordable large metro areas in the country, measured in terms of median -wage work hours needed to pay average monthly rent: at 87.1 hours, it ranks higher than San Francisco -Oakland (73.4 hours), Austin -Round Rock (70.4), New York - Newark (69.4 hours) and Boston -Cambridge (67.0 hours), among others. The combination of relatively high average rents with relatively low median wages is, in a nutshell, the central dynamic of the City's unaffordability crisis. According to the Affordable Housing Blueprint: Needs Assessment crafted by the Jorge M. Perez Metropolitan Center at Florida International University (FIU), "the most serious problem in Miami -Dade County is the estimated 251,732 renter households who are cost -burdened and the 140,062 renter households who are `severely' cost -burdened. The significant growth of severely cost -burdened renters is the most pressing problem due to three market conditions: 1) the increasing demand for renter housing throughout the County resulting in low vacancy rates and spiraling increases in rent prices, 2) the lack of affordable rental housing production, and 3) rent prices are increasing much faster than wages." Furthermore, "[...] the vast preponderance of County workers earn wages in service sector occupations, including retail trade, leisure and hospitality, and educational and health services. The household incomes of these service sector workers limit housing choices to affordable rental housing opportunities, where available." The problem is compounded, moreover, by the fact that, historically, the City's economy "[...] has shown it can shed higher wage jobs very quickly but has shown resistance to adding new high -skill, higher -paying jobs." Currently, already six in 10 employed adult residents of Greater Miami are housing cost -burdened, meaning they spend more than 30 percent of their incomes on housing — the highest rate of any large metropolitan area in the nation. Racial and ethnic minorities, as well as our community's low-income service workers, shoulder a disproportionate share of the burden of today's housing crisis. The following facts provide chilling insight into the scope and impact of the current crisis: 1 Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) Packet Pg. 61 2.6.a N R 14th Street Apartments Project • About 49% of Miami -Dade County's households are renters. Between 2012 and 2017, the County has seen its proportion of renter households grow by 11.4%, or nearly 2% annually. Miami, in particular, has become a city of renters: the City's homeownership rate, at 30%, is the lowest among large cities in the U.S. • Miami's renter population is disproportionately African American and Hispanic with 55% of black households and 48% of Hispanic households renting, compared with just over 25% of white households. • Greater Miami's median rents are increasingly unaffordable. As of October 2018, the median rent for Greater Miami was $2,095 — the eighth highest in the nation behind communities like Denver, Portland, Dallas and Austin. Said median rent requires an annual household income of not less than $83,800 for such rent to be "affordable" or for the household not to be "cost -burdened." • Miami's low-income service class — workers in low -skill jobs like retail, hospitality, food service and home care which make-up more than 50 percent of the region's workforce — is severely cost -burdened. Miami's service class faces the greatest rental cost burdens among all classes with just under $11,000 in annual income left -over after paying rent — the 5th worst rate among large metropolitan areas in the nation. • At the same time, an estimated 45% of the jobs created in the City from now through 2024 will be in occupations with a median annual income less than $35,000 per year: meanwhile, more than 9 out of 10 (90.9%) of renters in Greater Miami earning less $35,000 annually are cost -burdened. • Miami, in particular, has the highest proportion of cost -burdened renters in the nation by a significant margin. More than half of renters (62.4%) spend 35 percent or more of their household income on rent. Moreover, 32% of all renter households are "severely" cost -burdened — paying an excess of 50 percent of their incomes on housing costs. Greater Miami's renters have the least amount of money left over after paying for housing of any large metro: Miami's renters have, on average, less than $16,000 left over after paying their rent, far less than the $30,000 or so in take-home income that renters in Washington, D.C. and Boston have left over after paying for their housing. Crucially, though, despite the bleak picture, Miami has a lot of gains to reap by increasing the stock of affordable housing, gains that are broader than strictly dealing with housing scarcity and unaffordability. As stated in FIU's Miami Affordable Housing Master Plan, "affordable housing has broad -based economic growth impacts. As families keep more of their income, they drive greater local spending which in turn stimulates high -wage job creation, increased tax revenue, and lower public costs for health, human services and policing." Conversely, "keeping housing costs as a reasonable percentage of family income promotes higher educational attainment and improves family health outcomes, as families have more money to spend on education and health costs." It is clear that "improved affordability promotes inclusive economic growth". "Housing affordability can be a potent tool for improving economic performance, driving employment growth, productivity, wages, business development, and retaining and attracting high -skilled, educated workers to the region." "The cumulative economic impacts of greater, more widespread housing affordability would be a major boost to developing a more diversified, higher income City economy." "Affordable housing is [...J critical to Miami -Dade County's economic resilience [...J" NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 2 Packet Pg. 62 2.6.a Ha 14th Street Apartments Project CONSISTENCY WITH CRA REDEVELOPMENT PLAN Chapter 4 of the CRA proposed amendment to the Redevelopment Plan (2019) reaffirms the importance of the development of affordable housing to the economic vitality of the CRA. With regard to projects assisted by the CRA (from which it accepts projects it seeks to support to provide workforce, low, or very -low income housing), it identifies among its community benefits priorities the "inclusion of an appropriate amount of below -market rate units," specifically workforce housing units (at less than 140% AMI) and units for low-income residents (less than 80% AMI). Among the policy reasons articulated for such community benefits requirement are: (i) preservation of the affordability of the neighborhood; (ii) prevention of existing resident displacement; and (iii) provide area workers an opportunity to live near work. On page 4-32 of the amended Redevelopment Plan, the CRA has noted that housing affordability is one of the key programs for the CRA to undertake. A thriving community is one where residents in all phases of life with varying types of employment can live in one area. To that end, the CRA outlined the following programmatic methods it can employ to increase the supply of affordable housing: To Assist For -Profit Housing Providers in the CRA could: 2) Pay some portion of development costs such as impact or permit fees 3) Provide a direct cash subsidy in the form of a rebate equal to a percentage of the increases in taxes paid over a defined period of time after completion if affordable units are provided. In addition to the above programmatic methods to expand the supply of affordable housing, the CRA has identified the following goal on page 5-56 of the Redevelopment Plan: 6) Housing Affordability — The CRA should fund established and creative new ways to increase the stock of workforce and lower income affordable housing within the district. GOALS: a) Create project -specific developer incentives to ensure that new or significantly redeveloped residential projects in the CRA contain a sufficient number of units that are affordable to the target populations. The Project and accompanying request seek financial support from the CRA to underwrite the development of residential units, specifically for low-income and workforce households, and asks the CRA to provide the Applicant with a project -specific incentive. NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 3 Packet Pg. 63 2.6.a N R 14th Street Apartments Project PROJECT DESCRIPTION The Developer proposes to enter into a public -private partnership with the CRA to advance the CRA's goal of developing much needed affordable and workforce housing units within the redevelopment area. Applicant proposes to construct a 35-story tower on land it purchased over the course of the last four years which will consist of a mixed -use project comprised of the following elements: (i) 398 multi -family residential units; and (ii) approximately 9,000 sq. ft. of ground floor commercial use (the "Project"). Applicant proposes to assist the CRA in advancing its Redevelopment Plan goal by restricting rents for ALL of the 398 residential units within the Project through the life of the CRA as outlined herein below. The rent restrictions proposed will ensure that the Developer make residential units available to low-income households and households who can afford "workforce" rents, more specifically teachers, police officers, firefighters, nurses, first responders, and recent college graduates, among other professions. The Project represents the Developer's latest investment in the Omni "Arts + Entertainment District" — a dynamic urban residential neighborhood connecting the CRA & Downtown Miami with the Wynwood Arts District and the Design District. With the surrounding expansion, the Arts + Entertainment District has seen growth in its residential, culinary, entertainment and nightlife offerings, but substantial land remains undeveloped and a number of buildings remain dilapidated within the district evidencing the continued "slum & blight conditions" within the CRA. Applicant's CANVAS project, an art -inspired condominium offering a "bohemian luxe" lifestyle immersed in the local art, culinary & cultural scene, has served to anchor the district's ascendant trajectory. Beyond its project investments within the redevelopment area, NR Investments, Inc., has invested approximately $2 million in efforts to beautify the Arts & Entertainment District, attract new businesses and retailers to the area, and deliver high -quality arts, music and community programming, including "The Miami Flea," a pop- up market, and a "Moonlight Grooves," a music series held on CANVAS's backyard, among others. Given the Project's location just north of Downtown Miami, it is conveniently accessible via multiple modes of transit, including: (i) the MetroMover via the "School Board Station" on N.E. 15th Street; (ii) the City's free trolley system; and (iii) Virgin Trains' service at Grand Central Station. The inclusion of the proposed affordable and workforce dwelling units in the Project will provide residents convenient access to employment opportunities via mass transit servicing greater Downtown Miami area and portions of the South Florida region via inter -city passenger rail service. Illustrative Project rendering enclosed as Exhibit "A". NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 4 Packet Pg. 64 2.6.a REQUESTED PROJECT SUPPORT 14th Street Apartments Project Applicant's request assumes the approval of an extension of the term of the CRA through 2047 and obligations of the Applicant and CRA pursuant to an Incentive Agreement would be conditioned upon the passage of such an extension. With the clarification, Applicant proposes the following development restrictions and makes the following request of the CRA to assist the Project: • Proposed Residential Restrictions: Applicant proposes to rent -restrict 398 residential dwelling units — 27 studio dwelling units, 300 one -bedroom dwelling units and 71 two -bedroom dwelling units — as set forth in the "Project Information Sheet" attached hereto as Exhibit "B." Said rent -restrictions will be remain in place from the date the Residential portion of the Project is placed in-service (as evidenced by the issuance of a temporary certificate of occupancy or certificate of occupancy for a residential dwelling unit) through the date of the CRA's expiration (2047). The Applicant will be permitted to adjust the maximum rent per unit for each unit type consistent with the rate schedule adopted by the Corporation for "Multifamily Rental Programs" for Miami -Dade County. The Developer will impose a Covenant setting forth the rent restrictions and the minimum number of rent -restricted units by type. The Covenant shall grant the enforcement rights to the CRA through the term of its existence. • Requested Financial Support: Applicant requests partial loss reimbursement of $15.0 million, along with a rebate of 95% of the TIF collected by the Omni CRA from the Project. Developer anticipates that the rebated tax increment generated by the Project will amount to approximately $13.6 million in gross receipts, or approximately $8.7 million in present value. The partial loss reimbursement and TIF receipts will be used to offset the estimated $38.0 million in gross economic loss (in the 2047 scenario). Moreover, the project foresees around $4_3 million in estimated permit fees, water & sewer connection charges, and impact fees to be assessed at the initiation of the Project. See Exhibit "C" attached hereto. Construction costs have increased significantly in the last year, reflecting higher costs of materials and labor alike. The sharp post COVID-19 economic rebound, coupled with unprecedented public sector relief and stimulus outlays, are expected to create supply-side and labor bottlenecks, which threaten to exacerbate and prolong upward price pressures. The requested fmancial support will significantly help to offset these factors. ii The value of the requested financial support —partial loss reimbursement of $15.0 million and TIF rebate in the amount of $8_7 million in present value— is still substantially lower than the value of the losses generated by the rent and use restrictions detailed above: $38.0 million. This is without including the project's approximately $4.3 million in estimated permit and impact fees. The calculation of rent and use losses assumes that market rent prices will grow at a conservative rate of 3.00% per year. That being said, the specific area where the project is located is undergoing —and has, in fact, been experiencing for years— rapid growth and redevelopment, in the larger context of a City which expects to continue expanding its population and urban core. Therefore, it is not at all unreasonable to anticipate that market rates will increase at a much higher pace, which would, in turn, cause an even greater loss in rents due to the restrictions in place. In other words, the project's financial projections may very well be underestimating the losses generated by the rent restrictions. iv. The future resale/refinance value of the building, which is calculated on a cash flow basis, is also substantially diminished by the rent restrictions, by as much as $46,314,638, based on a standard market cap of 5.00%. NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 5 Packet Pg. 65 2.6.a 14th Street Apartments Project In sum, applicant deems that the project's present value losses and increased construction costs easily exceed the support sought, with even conservative estimates of market rents growth during the period. NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 6 Packet Pg. 66 2.6.a iZ 14th Street Apartments Project APPLICANT EXPERIENCE & QUALIFICATIONS 14th Street Development LLC, is a subsidiary of NR Investments, Inc. ("NR"), a privately held real estate investment company. Each of the company's principals and senior executives has extensive experience in real estate capital markets, acquisition, asset management, development, construction and risk management. NR believes in fostering cultural movements and communities in undiscovered areas, and in making their buildings the beacons of their renaissance. NR specializes in acquiring developing, repositioning, and managing real estate assets in major markets throughout the world. The company has acquired more than 10 million square feet of office and residential space across the globe. Over the past 18 years, NR has purchased, developed, repositioned and sold over $700 million of multifamily and commercial real estate assets. Recent Development Experience • Filling Station Lofts: In January 2013, NR stepped into Miami's Omni / Arts & Entertainment District with the acquisition and subsequent completion of Filling Station Lofts, an 81-unit loft -style apartment building. • CANVAS Condominiums: In November 2013, NRI closed on the 1.07-acre CANVAS condominium site. NR constructed a 37-story, 513-unit residential condominium tower that received its fmal certificate of occupancy (C.O.) at the end of 2018, and was delivered in 2019. Qualifications of Principals • Nir Shoshani — Principal. Prior to forming NR in 2001, Mr. Shoshani held the title of President at TiS America, Inc., a subsidiary of Top Image Systems Ltd. (NASDAQ: TiSA), a publicly traded, high-tech firm headquartered in Israel with operations around the globe. Mr. Shoshani is a graduate of the Belgrano School of Business in Buenos Aires. • Ron Gottesmann — Principal. Prior to forming NR in 2001, Mr. Gottesmann worked as a mortgage broker overseeing the operation of GFI Mortgage Bankers Inc. of New York. With Mr. Shoshani, Mr. Gottesmann leads NR which today is a fully integrated development firm which owns and manages a wide variety of real estate, including large scale office buildings, commercial shopping centers, and multi -family housing. Under Mr. Gottesmann's leadership, the firm has maintained a consistent focus on property repositioning via the acquisition of underperforming buildings in high visibility locations rehabilitating them to their full potential through extensive renovation and management restructuring. • Terry Wellons — C.O.O. Mr. Wellons serves as the Chief Operating Officer at NR. He leads the United States team directing a group of highly experienced attorneys, accountants and portfolio and property managers. He has a background in finance and as a real estate attorney, serves as lender's counsel and representing buyers and sellers of real estate, aids NR in each aspect of NR's business, effectively negotiating and gauging the legal and financial risks involved with each transaction. Mr. Wellons holds a degree in fmance from Florida International University and a law degree from Nova Southeastern University, NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 7 Packet Pg. 67 2.6.a M R 14th Street Apartments Project ExxrmIT "A" PROJECT RENDERING NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 8 Packet Pg. 68 2.6.a NA Developer/Applicant: Contact Person: Telephone: E-mail: Project Address: 14th Street Apartments Project EXHIBIT "B" Omni CRA Tax Increment Recapture Agreement Project Information Sheet 14th Street Development LLC Terry Wellons, C.O.O. (305) 625-0949 terry@minvestments.com nrinvestments.com 1441, 1445 & 1455 N. Miami Avenue, 25 & 31 N.E. 14th Street, and 1412, 1418, 1428 & 1432 N.E. Miami Court, Miami, Florida Property Information Prior Year Taxable Values Folio Numbers Existing Building Size Lot Size 2019 2018 2017 01-3136-005-1110 0 sq. ft. 7,600 sq. ft. $1,333,420 $1,212,200 $1,102,000 01-3136-005-1070 0 sq. ft. 11,400 sq. ft. $1,875,630 $1,705,119 $1,550,109 01-3136-005-1060 929 sq. ft. 5,700 sq. ft. $874,463 $794,967 $722,698 01-3136-005-1180 0 sq. ft. 3,355 sq. ft. $551,489 $501,354 $486,475 01-3136-005-1151 _ 0 sq. ft. 5,000 sq. ft. $821,892 $750,000 $679,250 01-3136-005-1150 0 sq. ft. 2,200 sq. ft. $361,632 $328,757 $298,870 01-3136-005-1140 0 sq. ft. 4,200 sq. ft. $690,389 $627,627 $570,570 01-3136-005-1130 0 sq. ft. 4,200 sq. ft. $690,389 $627,627 $570,570 01-3136-005-1090 0 sq. ft. 6,300 sq. ft. $1,035,584 $941,440 $855,855 Total: 929 sq. ft. , 49,955 sq. ft. $8,234,888 $7,489,091 $6,836,397 Type of Project: Construction Commencement: Project Construction Completion Date: Project Construction Cost: Estimated Adj. Taxable Value (TIF Basis): Residential Square Footage: Retail Square Footage: Property Acquisition Date: Total Acquisition Cost: Projected Residential Rent (Per Unit Type): Mixed Use (Retail, Multi -Family Residential) June 1st, 2022 October 1st, 2024 $141,414,310 $65,088,738 297,625 sq. ft. +/- 8,706 sq. ft.+/- May 2014 and February 2015 $7,842,000 Studio - $1,747 / 1BD - $2,224/ 2BD- $2,750 NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 9 Packet Pg. 69 2.6.a A 14th Street Apartments Project Proposed Affordability Restrictions: 2047 Unit Type Total Units Maximum Rent Studio- 60% AMI 2 $960 Studio- 80% AMI 3 $1,280 Studio- 100% AMI 4 $1,600 Studio- 120% AMI 5 $1,920 Studio- 140% AMI 13 $2,240 1BD- 60% AMI 15 $1,029 1BD- 80% AMI 30 $1,372 1BD- 100% AMI 45 $1,715 1BD- 120% AMI 60 $2,058 1BD- 140% AMI 150 $2,469 2BD- 60% AMI 3 $1,234 2BD- 80% AMI 7 $1,646 2BD- 100% AMI 11 $2,058 2BD- 120% AMI 14 $2,469 2BD- 140% AMI 36 $2,880 Total: 398 - NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 10 Packet Pg. 70 2.6.a 21 13 14th Street Apartments Project RESIDENTIAL ECONOMIC Loss ExAiBIT "C" FINANCIAL ANALYSIS 4 5 7 10 11 Tax Years 2026 2027 2028 2029 2030 2031 2032 2033 Annual Rent 6011: (31,244,320) ($1,282,165) ($1.320,630) (51,360,243) (51.401,056) 151.443088) (51.486,330) ($1,530,972) Valuatien lss (524,896,403) 1525,643,292) (526,412.5911 (527,204,963) 023.031.1181 ($28,861,251) (229,222,604) (530,619,432) Total 12 13 14 15 16 17 18 19 Tax Years 2034 2035 2036 2032 2038 2039 2040 2041 Toll Annual0ent 10ss: ($1,576,901) ($1,624,208) (51,6T2,934) (51.223,122) (51.774.8161 (51,82gp60) (51.862,902) (51.939,389) (514A22,331) Valuation lass (531,513,015) 1532.434.155) ($33,458,680) ($34,432,440) ($35,496,313) 1536,561,203) ($37,659,039) 1538,787,280) 20 21 22 23 24 25 26 27 28 Tax Years 2042 2043 2044 2045 2046 2047 2046 2047 Total Annual Pent loss: (51,992,521) (52,057,4981 (52,119,2331 (52,132,799) (52,249,283) (52,315,732) $0 50 • ($12,921.106) Valuation lass (539,951,413) ($41,149,956) (542,384,454) ($43,655,938) (544,935,368) ($46,314,638) $0 50 Weighted ANTI Restriction of Bottom 50%0l Units 999096 Total Rent lass: TIF TO DEVELOPER CALCULATION CM/Developer Retainage: 95% Growth Pate: 1,03 Discount Rate 3% Miami - Municipal Operating Wang -Dade County • 0perating MIIIage Rate Taxable Value(2020) Taxable Value(@ 0.0.( A0). Taxable Value Tax R.I. 1*241 CRA TIF:95%) CIA Pelinetl TIF(65%) Counry Clawhack (35%) 7.4365 $8,700,000 573,788,238 $65,093,738 $434,032 $459,831 5298,890 5160,941 4.6669 58,700,000 573,788,738 $65,088,73E1 $303.763 $288,375 5187,573 $101,001 Total Receipts: $787,795 $748,405 $486,463 $261,942 Tax Years 2026 2027 2028 2029 2030 2031 2032 2033 Toll TIF to CM: $486,463 $501,057 5516,039 5531,572 5547,519 $563,944 $580,863 $593,289 $4,325,796 TIF to Developer: 5462,140 $476,004 $490,235 5504,993 5520,143 $535,747 5551,820 $568,374 54,019,502 TIF ia Developer)PV(: $410,606 $410,606 $410,606 $310,606 $410,606 $410,606 $410,606 $410,606 $3,284,845 Tax Years 203 2034 2035 6 2037 2038 2039 2040 2041 Toll TIF to CIA: 5585,425 5602,983 $621,078 $639,710 $658,902 $678,669 $699,029 $719,999 $5,205,800 TIF to Devel0per. $556,154 $572,839 $590,024 $607,723 $625,956 5644,735 $654,077 $683,999 54,945,510 TIF to Developer OM: $390,075 $390,075 $390,075 $390,075 5390,025 $390,075 $390,075 $390,075 53,120,603 2042 2043 2044 2045 2046 204T 2046 2047 r 0 Tall TIF to CM: $741,599 5763,847 $786,763 5810,366 $834,677 $859,717 $0 $0 50 $4,796,969 TIF to Oevel0per. 5704,519 $725,655 5747,425 $769,847 $292,943 $816,731 $0 50 $0 54,357,121 114to Developer WP60)1 5390,075 $390,075 $390,075 $390,075 $390,075 $390,075 50 $0 $0 $2,340,452 Total OFIOCRA: $14,328,565 TIF to Developer: $13,612,137 11F to Developer )TV): 58,745,900 NRINVESTMENTS.COM Attachment: 10633 NR 14th Street Proposal (10633 : NR 14th Street TIF) 11 Packet Pg. 71