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HomeMy WebLinkAbout15058 MemorandumSEOPW Board of Commissioners Meeting November 16, 2023 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King and Members of the CRA Board From: James McQueen Executive Director Date: November 8, 2023 File: 15058 Subject: Block 55 Residential, LP, Miami Forever Bond Loan Enclosures: File # 15058 - Backup BACKGROUND: A Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA"), Block 55 Residential, LP ("Block 55") is the owner of that certain a 3.44 acre land parcel located at 249 NW 6tn Street, Miami, FL (Folio#: 01-0105-050-1120) (the "Property") and is developing, on a portion of the Property, an affordable housing community consisting of 578-residential units (collectively, the "Units"). On or about August 12, 2021, the City of Miami Florida, a municipal corporation of the State of Florida (the "City") made a loan (the "Loan") to Block 55 to finance the construction of 289 of the Units (the "Bond Assisted Units"), which Loan is evidenced by that certain Miami Forever Bond Loan Agreement for Block 55 Residential, LP dated as of August 12, 2021 by and between the City and Block 55 (the "Loan Agreement") and that certain Promissory Note (Miami Forever Bond Funds) for Block 55 Residential, LP in the principal amount of Seven -Million Five Hundred Thousand Dollars and Zero Cents ($7,500,000.00) (the "Note") and which Loan is secured by that certain Miami Forever Bond Mortgage and Security Agreement for Sawyer's Walk recorded in Official Records Book 32702, Page 915 of the Public Records of Miami -Dade County, Florida (the "Mortgage") and certain other loan documents executed in connection therewith (collectively, the "Loan Documents"). The Bond Assisted Units are subject to that certain Rent Regulatory Agreement for Sawyer's Walk recorded in Official Records Book 32702, Page 905 of the Public Records of Miami -Dade County, Florida (the "RRA"). The CRA desires to purchase the Loan and receive an assignment of the Loan Agreement, the Note, the Mortgage, the RRA and the other Loan Documents. JUSTIFICATION: Section 2, Goal 3, at page 11, of the Plan lists the "creati[on of] infill housing, diversity in housing types, and retaining affordable housing," as a stated redevelopment goal. FUNDING: The Executive Director is hereby authorized to disperse funds, subject to availability of funds, or in the alternative, funding made available from the 2024 bond issuance. FACT SHEET: Company name: Block 55 Residential, LP Purchase loan cost: $7,500,000.00 Scope of work or services (Summary): The CRA desires to purchase the Loan and receive an assignment of the Loan Agreement, the Note, the Mortgage, the RRA and the other Loan Document. Page 2 of 5 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: November 16, 2023 CRA Section: Brief description of CRA Agenda Item: The Executive Director is hereby authorized to disperse funds, subject to availability of funds, or in the alternative, funding made available from the 2024 bond issuance. Project Number (if applicable): YES, there are sufficient funds in Line Item: Account Code: Amount: NO (Complete the following source of funds information): Amount budgeted in the line item: $ Balance in the line item: $ Amount needed in the line item: $ Sufficient funds will be transferred from the following line items: ACTION ACCOUNT NUMBER TOTAL Project No./Index/Minot Object From $ To $ From $ To $ Comments: Approved by: Approval: Executive Director 11/8/2023 Miguel A Valentin, arice o oen 11/8/2023 Page 3 of 5 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: File Number: 15058 Final Action Date:11/16/2023 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE PURCHASE OF THAT CERTAIN MIAMI FOREVER BOND LOAN IN THE OUTSTANDING PRINCIPAL AMOUNT OF SEVEN -MILLION FIVE HUNDRED THOUSAND DOLLARS AND ZERO CENTS ($7,500,000.00) MADE BY THE CITY OF MIAMI, FLORIDA TO BLOCK 55 RESIDENTIAL, LP AND THE ASSIGNMENT OF ALL LOAN DOCUMENTS EXECUTED IN CONNECTION WITH SUCH LOAN AND AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ALL PURCHASE AND ASSIGNMENT DOCUMENTS IN CONNECTION THEREWITH WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") is a community redevelopment agency created pursuant to Chapter 163, Florida Statutes, and is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area in accordance with the 2018 Southeast Overtown/Park West Redevelopment Plan Update ("Plan"); and WHEREAS, Section 2, Goal 3, at page 11, of the Plan lists the "creati[on of] infill housing, diversity in housing types, and retaining affordable housing," as a stated redevelopment goal; and WHEREAS, Block 55 Residential, LP ("Block 55") is the owner of that certain a 3.44 acre land parcel located at 249 NW 6t'' Street, Miami, FL (Folio#: 01-0105-050-1120) (the "Property") and is developing, on a portion of the Property, an affordable housing community consisting of 578- residential units (collectively, the "Units"); and WHEREAS, on or about August 12, 2021, the City of Miami Florida, a municipal corporation of the State of Florida (the "City") made a loan (the "Loan") to Block 55 to finance the construction of 289 of the Units (the "Bond Assisted Units"), which Loan is evidenced by that certain Miami Forever Bond Loan Agreement for Block 55 Residential, LP dated as of August 12, 2021 by and between the City and Block 55 (the "Loan Agreement") and that certain Promissory Note (Miami Forever Bond Funds) for Block 55 Residential, LP in the principal amount of Seven - Million Five Hundred Thousand Dollars and Zero Cents ($7,500,000.00) (the "Note") and which Loan is secured by that certain Miami Forever Bond Mortgage and Security Agreement for Sawyer's Walk recorded in Official Records Book 32702, Page 915 of the Public Records of Miami -Dade County, Florida (the "Mortgage") and certain other loan documents executed in connection therewith (collectively, the "Loan Documents"); WHEREAS, the Bond Assisted Units are subject to that certain Rent Regulatory Agreement for Sawyer's Walk recorded in Official Records Book 32702, Page 905 of the Public Records of Miami -Dade County, Florida (the "RRA"); and Page 4 of 5 WHEREAS, the CRA desires to purchase the Loan and receive an assignment of the Loan Agreement, the Note, the Mortgage, the RRA and the other Loan Documents; and WHEREAS, the CRA Board Commissioners desire to authorize the Executive Director to negotiate all documents necessary or advisable in connection with the purchase of the Loan and the assignment of the Loan Documents and the RRA, including without limitation, a loan purchase agreement by and between the City and the CRA and assignments of the Loan Agreement, the Note, the Mortgage, the RRA and all other Loan Documents (collectively, the "Purchase and Assignment Documents"). NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. The Executive Director is hereby authorized to disperse funds, subject to availability of funds, or in the alternative, funding made available from the 2024 bond issuance. Section 3. The Board of Commissioners hereby authorizes the purchase of the Loan by the CRA and the assignment of the Loan Agreement, Note, Mortgage, RRA and other Loan Documents to the CRA. Section 4. The Board of Commissioners hereby authorizes the Executive Director to negotiate and execute the Purchase and Assignment Documents on behalf of the CRA. Section 5. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the Executive Director, or the Executive Director's designee, without need of public hearing, by filing a corrected copy of same with the City of Miami City Clerk. Section 6. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: V ce Br , i oun e- 11/8/2023 Page 5 of 5