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HomeMy WebLinkAboutCRA-R-23-0033 Backup 2023-05-251818 Apartment Rental LLC. 1818 NW 2"d Ct., Miami, FL 33136 December 9, 2022 Brian Zeltsman Director of Architecture and Development Southeast Overtown Park West Community Redevelopment Agency 819 NW 2"d Ave Miami, FL 33136 (305) 679-6827 Dear Mr. Zeltsman We are the property owner of 1818 Apartment Rental LLC. located at 1818 NW 2"d ct., Miami, FL 33136. The propose development will contain all units for persons earning less than 60% AMI (area median income), including several units for extremely low- income individuals. For example, those who make less than 30% of AMI, their rent will be set at this rate. Their rent will be at most $1,150.00. We will allow a number of units that can occupy at this rate. We will work with low-income agencies to help ensure we are providing our agreed service to the community. We will provide attainable mixed -income housing for qualified residents in all scenarios. Our apartment contained 11 one bedroom/ one bathroom units, and we will offer residents the ability to reside in 50% -100% of our apartments at $1,150.00 to $1,450.00 monthly. Operating at this expense will allow our building to generate enough revenue to housed low-income from 25% -60% AMI. 1. At 25% AMI extremely low-income rent at $1,150.00 per month, and the net income at this rate before expenses is $12,650.00 2. At 30% AMI low-income rent at $1,300.00 per month, and the net income at this rate before expense is $14,300.00. 3. At 50% AMI cap no more than $1,450.00 per month, and the net income at this rate before expenses is $15,950.00 of Grant to a loan request: REQUEST TERMS 1, 2, or 3 1. 100% grant funding approval from the CRA: To be good stewards of the investment, we, the owner and representatives of 1818 Apartment Rentals will agree to a no -sales clause with an agreement not to sell the property for a minimum of 10 years. If we do opt to sell in this time frame, we will first offer to sell to The CRA at a fair market price with the consideration of funds The CRA have granted. Without payback of the grant or any funds issued. 2. The CRA to grant $1,400,000.00 and $400,000.00 in forgivable loan. Terms on this loan is APR (annual percentage rate) set at 0-3.5 %. No sale clause terms for 6 years. If we sell before six years, the forgivable loan will be paid back at the interest rate and/or paid in full at sale date. 3. The CRA to grant $1,600,000.00 and $200,000.00 in forgivable loan. Terms on this loan is APR 0-3.5%. No sale clause terms for 8 years. In addition, we guarantee for 8 years low-income 25%-50% AMI for tenants in our building. Sincerely Date: Date: Owner/ Authorize Agent Curtis Hinson Jr. Clarice Lawrence STANDARD FORM OF AGREEMENT BETWEEN OWNER AND DESIGN -BUILDER Project: 1818 Apartment Rental This AGREEMENT is made as of the October 17, in the year of 2022 by and between the following parties, for services in connection with the Project identified below: OWNER: 1818 Apartment Rental LLC Folio: 01-3136-029-0250 1818 NW 2nd Ct Miami Fl. 33136 DESIGN -BUILDER: RUNU CONTRACTING, INC 2861 NW 154 Terrace Miami Gardens, FL 33054 runucontractinggc@gmail.com PROJECT: The design and builder (Runu Contracting Inc.) and the Owner (1818 Apartment Rental LLC) has agreed up on the scope of work. This project consist of a complete gut rehab of 11 unit and with un-going negotiation for the open area on the first floor. Which is located at 1818 NW 3 Ave, Miami, FL 33136 In consideration of the mutual covenants and obligations contained herein, Owner and Design -Builder agree as set forth herein. Article 1 Scope of Work 1.1 Runu Contracting Inc shall perform all design and construction services, and provide all material, equipment, tools and labor, necessary to complete the Work described and reasonably inferable from the Contract Documents. 1.2 Completely remodel of an existing three story, 11 units residential building. 1.3 1818 Apartment Rental LLC have the option to modify four units or just remodel all units as is. 1.4 Install all new electrical wiring, panel box and all associated electrical component 1.5 Install all new central air condition units to each apartment units. 1.6 Install all new plumbing piping, instant hot water heater and associate components 1.7 Install all new bathroom and floor tiles 1.8 Install all new dry wall 1.9 Install all new impact windows and doors 1.I0Install all new kitchen cabinets 1. l l Install new quarts counter tops 1.121nstall all new railing 1.13 Change the building facade 1.14Paint all interior and exterior walls 1.15Replace all parameter fencing 1.16lnstall a new flat roof 1.17Install a new roof gutter 1.18Install new appliances 1.191nstall new landscaping 1.20Install building sign A lump sum fee of $1,800,000.00 has been established to complete the Scope of Work for this project. If additional services are required beyond the original Scope of Work, and monies allocated by the CRA is not adequate. This will be the responsibility of the Owner(s) to furnish any additional funding. 1.3.2 Planning and Permitting: 1. Runu Contracting Inc will coordinate all aspect of construction and planning 2. Runu Contracting Inc will hire all professional team member for this project 3. Runu Contracting will coordinate with architectural and engineering team in preparation for all documents and plans to be submitted to the City of Miami Building Department. 4. Runu Contracting Inc will also coordinate all subcontractor permit submittals. 1.3.3 Design and Construction Documents: 1. Runu Contracting Inc will coordinate all design features with the owner 2. Runu Contracting Inc will provide the Architectural and engineer team with all required documents 1.4 Runu Contracting Inc will coordinate all scope of services for construction to the owner 1.4.1 General services: 1. Runu Contracting Inc. representative will communicate with the Owner on a regular basis, through meetings, design reviews and progress meetings. 2. Runu Contracting Inc will provide the Owner with a monthly status report outlining the progress of the work, including updates on safety, quality, schedule, cost and other general open issues. 3. Runu Contracting Inc has included as part of this proposal one formal project review meeting per month from Date TBA through Date TBA. It is understood that the Owner and the Design -Builder will work together to make the monthly project review meetings as efficient and effective as possible. The meeting schedule is not intended as a hard fast line item, but as a directional definition as to the degree of reasonableness. Article 2 Contract Documents 2.1 The Contract Documents are comprised of the following: .1 All written modifications, amendments and change orders to this Agreement must be in writing prior to working being done. .2 This Agreement, including all exhibits and attachments; Attachment "A" — See plans Date TBA Attachment "B" — Schedules of Values provided by Runu Contracting, Inc. Attachment "C" — Narrative .3 Written supplementary conditions, if any, to the General Conditions of Contract; .4 The lump sum contract price is good for 90 from date of this proposal due to a constant increase in material price. .5 Construction Documents prepared and approved in accordance with City Of Miami Building Department and FBC latest Edition. Article 3 Interpretation and Intent 3.1 The Contract Documents are intended to permit the parties to complete the Work and all obligations required by the Contract Documents within the Contract Time for the Contract Price. The Contract Documents are intended to be complementary and interpreted in harmony so as to avoid conflict, with words and phrases interpreted in a manner consistent with construction and design industry standards. In the event of any inconsistency, conflict, or ambiguity between or among the Contract Documents, the Contract Documents shall take precedence. Article 5 Contract Time 5.1 Date of Commencement. The "Date of Commencement" shall be the date of Southeast Overtown Parkwest CRA Board Meeting approval. The Work shall commence on the Date of Commencement unless the parties mutually agree otherwise in writing. 5.2 Substantial Completion and Final Completion 5.2.1. Substantial Completion of the entire Work shall be achieved on or before Date TBA (the "Scheduled Substantial Completion Date"). 5.2.2 Interim milestones and/or Substantial Completion of identified portions of the Work shall be achieved as follows: Preconstruction Design and Engineering Date TBA - Date TBA Complete permits Date TBA — Date TBA estimated and could change Dates are not final and subject to The Building Department approvals Construction Site Mobilization TBA 5.2.3 Final Completion of the Work or identified portions of the Work shall be achieved as expeditiously as reasonably practicable. 5.2.4 All of the dates set forth in this Article 5 ("Contract Time(s)") shall be subject to adjustment in accordance with the General Conditions of Contract. 5.3 Timeliness of Performance. 1818 apartment Rental LLC and Runu Contracting Inc. mutually agree that time is of the essence with respect to the dates and times set forth in the Contract Documents. Section 5.2.2 outlines milestones and substantial completion of identified portions of the work. Section 5.2.2 includes reasonable allowances for review and approval times required by the Owner, performance of services by any Owner consultants, and review and approval times required by public authorities having jurisdiction over the Project. The milestone and substantial completion dates for portions of the work associated with the Grain Facilities or such other work as may be mutually agreed upon by the parties hereto shall be equitably adjusted as the Project progresses, allowing for changes in scope, character or size of the Project requested by the Owner, or for delays or other causes beyond the Design -Builder's reasonable control, which shall include unavailability of resources and material related to the required design, engineering and construction services necessary to support the Grain Facility. Article 6 Contract Price 6.1 Contract Price $1,800,000.00 6.1.1 Owner shall pay Runu Contracting Inc. in accordance with Article 6 of the General Conditions of Contract a contract price ("Contract Price") equal to Design -Builder's Fee (as defined in Section 6.2 hereof) plus the Cost of the Work (as defined in Section 6.3 hereof) and any adjustments made in accordance with the General Conditions of Contract. 6.1.2 For the specific Work set forth below, Owner agrees to pay Runu Contracting Inc., as part of the Contract Price, on the following basis: 6.3 Cost of the Work. The term Cost of the Work shall mean costs reasonably incurred by Design -Builder in the proper performance of the Work. The Cost of the Work shall include only the following: .1 Payments properly made by Runu Contracting Inc. to Subcontractors and Design Consultants for performance of portions of the Work, including any insurance and bond premiums incurred by Subcontractors and Design Consultants. Article 7 Procedure for Payment 7.1 Progress Payments 7.1.1 Design -Builder shall submit to Owner on the Date TBA and Date TBA day of each month, beginning with the first month after the Date of Commencement, Runu Contracting INC Application for Payment for that portion of the Design -Builder's Fee then payable in accordance with Attachment "C" — Payment and Cash Flow Schedule provided, however, the payment dates set forth in Attachment "C" shall be equitably adjusted based on any adjustment of the Contract Times pursuant to Section 5.2.4. 7.1.2 Runu Contracting Inc. shall submit to the Owner on the TBA day of each month, beginning with the first month after the Date of Commencement, the Design -Builder's Application for Payment for Subcontractors and general conditions and project support expenses and/or costs in accordance with Article 6 of the General Conditions of Contract. 7.1.3 Runu Contracting Inc professional (architectural and engineering) services fees shall be fixed as part of the Agreement. 7.1.4 Owner shall make payment within ten (10) days after Owner's receipt of each properly submitted and accurate Application for Payment in accordance with Article 6 of the General Conditions of Contract, but in each case less the total of payments previously made, and less amounts properly withheld under Section 6.3 of the General Conditions of Contract. 7.2 Retainage on Progress Payments will be included in payment application Representatives of the Parties OWNER: 1818 Apartment Rental LLC Clarice Lawrence DESIGN -BUILDER: Runn Contracting, Inc Jermaine A. 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