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HomeMy WebLinkAboutCRA-R-24-0033 MemorandumSEOPW Board of Commissioners Meeting May 23, 2024 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: June 11, 2024 File: 16078 Subject: 4/5ths Bid Waiver - Town Park Plaza North Condominium Association, Inc. Enclosures: File # 16078 - Memo File # 16078 - File # 16078 - Public Bid Waiver Backup Notice to the BACKGROUND: A Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA"), with attachment(s) 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 ("City Code"), and as adopted by the SEOPW CRA; waiving the requirements for competitive sealed bidding as not being practicable or advantageous to the SEOPW CRA; to authorize additional grant funding in an amount not to exceed Three Million, Nine Hundred Sixty Thousand, Four Hundred Eighty - Three Dollars And No Cents ($3,960,483.00) bringing the total cost of the Project to Thirty -One Million, Six Hundred Eighteen Thousand, Eight Hundred Sixteen Dollars And Zero Cents ($31,618,816.00) ("Funds") to Town Park Plaza North Condominium Association, Inc., a Florida not for profit corporation ("TPPN") for the completion of the rehabilitation project ("Purpose") at Town Park Plaza North Condominiums located at 1945 N.W. 5th Place, Miami, Florida 33136 (the "Property). Built in 1973, TPPN, is a residential housing complex consisting of 20 buildings and 169 condominium units. TPPN is one of the few communities in the Redevelopment Area consisting of homeowners, of which, some individuals have owned and resided in their property for over 40 years. The condition of TPPN poses significant risk of health and safety to its occupants, and in turn, extensive rehabilitation is needed, as evidenced by structural cracks, unsecured railings, deteriorating plumbing, rotting wood, and outdated electrical wiring. On October 24, 2013, September 30, 2014, September 11, 2018, and April 15, 2021 the SEOPW CRA's Board of Commissioners passed Resolution Nos. CRA-R-13-0068, CRA-R-14-0062, CRA-R-18-0042, and CRA-R-21-0001 which authorized the issuance of a grant, in an amount not to exceed $27,683,333.00 to perform a full -gut rehabilitation to the units within TPPN, to rehabilitate the exterior of the buildings, and to perform site work and common area improvements throughout the Property. THE ADDITIONAL FUNDING NEED: Since the onset of this rehabilitation project, several events have resulted in the need to increase the grant amount, including unforeseen conditions, Covid pandemic related stoppages, availability of materials and equipment following the Covid pandemic, labor and material cost increases, and additional required work to satisfy building department and code requirements; all which significantly impacted the construction costs and the temporary relocation expenses for residents. In addition, the original general contractor was terminated for poor performance and the original relocation consultant voluntarily withdrew from the project. As a result, H.A. Contracting, Inc, and N & H Consulting, Inc. were brought on to complete the project, having successfully completed a similar major rehabilitation project with temporary relocation of residents at Town Park Plaza South adjacent to TPPN. The project is now in the final stages of completion on 39 residential units and TPPN seeks additional grant funds to close-out the Project. The residents and owners of the 39 units have been temporarily relocated for several years. The additional funding will allow the project to be fully completed and allow residents to return to their new renovated homes at TPPN. The additional funding provides the necessary funds to complete the following remaining tasks: • Replacement of impact windows for buildings 1, 2, 3, 4, and 17. • Design and permitting of plumbing system for buildings 1-4 which were not included in the original permitted design when the previous contractor was terminated. • Add required insulation to 2nd floor ceilings not previously installed at each unit of remaining buildings • Asbestos remediation and vanilla -box completion of the Clubhouse. • Installation of new underground utility (sewer and water lines) for building 1, 2, 3, and 4 from buildings to new meters, and related asphalt restoration. • Additional fire caulking, drywall, and insulation modifications subsequent to an on -site meeting with City of Miami Building Department officials to address deficiencies. • Redesign, permitting, and installation of traditional water heaters in lieu of tankless heaters in buildings 1 and 17 to avoid additional delays as the existing FPL transformers had limited capacity for higher service demand. The additional funding requested also includes funds to allow for increased relocation costs resulting from extended delays, and includes a small contingency amount. This Resolution will also allow for the transfer of unused soft -cost funds approved under Resolution CRA-R-21-0001, totaling $125,000 towards the required necessary completion work on the project. Upon approval of the additional funding, the general contractor has committed to fully completing the project and having all residents back in their newly renovated homes by the end of July 2024. Note: in 2021 and well after the 2015 commencement of this multi -building phased grant project, TPPN was notified by the City of Miami that the 40-year recertification for the Property was due to be submitted. This includes buildings already completed at the time of the notice. The required tasks, including engineer's inspection reporting, drawings, permit fees, and any potential physical repairs or Page 2 of 7 construction at Property to obtain the 40-year recertification were/are not part of this grant project and are the responsibility of TPPN. As such, this Resolution does not include any funding for 40-year recertification of buildings at TPPN. JUSTIFICATION: Florida Statutes, Section 163.335(6) of the Community Redevelopment Act (the "Act"), found and declared that there exists "... a severe shortage of housing affordable to residents of low or moderate income, including the elderly... [and] such condition[s] affect the health, safety and welfare of the residents ... and retards their growth and economic and social development ...." Section 2, Goal 3, of the 2018 Southeast Overtown/Park West Community Redevelopment Plan Update ("Plan") lists "encourag [ing] ... affordable ...housing within the CRA" as a stated redevelopment goal; and Section 2, Goal 6, of the Plan lists "creating housing...designed to improve the quality of life for Overtown residents in the CRA" as a stated redevelopment goal; and Section 2, Principle 2, of the Plan also provides that "the neighborhood must retain access to affordable housing even as the neighborhood becomes more desirable to households with greater means" as a stated redevelopment principle; and Section 2, Principle 3, of the Plan further provides that "there must be variety in housing options" as a stated redevelopment principle. FUNDING: $3,960,483.00 to be derived from the SEOPW Tax Increment Fund, entitled "Other Grants and Aids," Account Code No. 10050.920101.883000.0000.00000. FACT SHEET: Company name: Town Park North Condominium Association, Inc. Address: 1945 N.W. 5th Place, Miami, Florida 33136 Funding request: $3,960,483.00 Scope of work or services (Summary): Completion of last phase (39 units in 5 building) of the on- going major rehabilitation project which includes interior gut -rehabilitation work of all units and site work including new sewer laterals. Page 3 of 7 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: May 23, 2024 CRA Section: Brief description of CRA Agenda Item: Authorizing additional funding in the amount of $3,960,483.00 to Town Park Plaza North Condominium Association, Inc. for the completion of the rehabilitation project. Project Number YES, there Account Code: (if applicable): are sufficient funds in Line Item: 10050.920101.883000.0000.00000 Amount: $ 3,960,483.00 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 5116/2024 Miguel A Valentin, ririarice Off;cer 511612024 Page 4 of 7 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-24-0033 File Number: 16078 Final Action Date:5/23/2024 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENT(S), 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 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), AND AS ADOPTED BY THE SEOPW CRA; WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE SEOPW CRA; AUTHORIZING ADDITIONAL GRANT FUNDING IN AN AMOUNT NOT TO EXCEED THREE MILLION NINE HUNDRED SIXTY THOUSAND FOUR HUNDRED EIGHTY-THREE DOLLARS AND ZERO CENTS ($3,960,483.00) ("ADDITIONAL FUNDING"), BRINGING THE TOTAL PROJECT COST TO THIRTY-ONE MILLION, SIX HUNDRED EIGHTEEN THOUSAND, EIGHT HUNDRED SIXTEEN DOLLARS AND ZERO CENTS ($31,618,816.00) ("FUNDS"), TO THE TOWN PARK PLAZA NORTH CONDOMINIUM ASSOCIATION, INC., A FLORIDA NOT FOR PROFIT CORPORATION ("TPPN"), TO COMPLETE THE REHABILITATION OF THE PROPERTY LOCATED AT 1945 N.W. 5TH PLACE, MIAMI, FLORIDA 33136 ("PURPOSE"); FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN AMENDMENT, IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, TO THE SEOPW CRA'S PRIOR AGREEMENT WITH TPPN TO PROVIDE FOR THE ADDITIONAL FUNDING FOR SAID PURPOSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW 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 (the "Plan"); and WHEREAS, Section 2, Goal 3, of the Plan lists "encourag [ing] ... affordable ...housing within the CRA" as a stated redevelopment goal; and WHEREAS, Section 2, Goal 6, of the Plan lists "creating housing...designed to improve the quality of life for Overtown residents in the CRA" as a stated redevelopment goal; and Page 5 of 7 WHEREAS, Section 2, Principle 2, of the Plan also provides that "the neighborhood must retain access to affordable housing even as the neighborhood becomes more desirable to households with greater means" as a stated redevelopment principle; and WHEREAS, Section 2, Principle 3, of the Plan further provides that "there must be variety in housing options" as a stated redevelopment principle; and WHEREAS, built in 1973, Town Park Plaza North Condominium Association, Inc., a Florida not for profit corporation ("TPPN") formerly known as Town Park Plaza Inc., located at 1945 N.W. 5th Place, Miami, FL 33136 , is a residential housing complex consisting of 21 buildings and 169 condominium units ("Property"); and WHEREAS, the condition of TPPN poses a significant risk to the health and safety of its occupants, and, in turn, extensive rehabilitation is needed, as evidenced by structural cracks, unsecured railings, deteriorating plumbing, rotting wood, and outdated electrical wiring ("Project"); and WHEREAS, on October 24, 2013, September 30, 2014, September 11, 2018, and April 15, 2021 the SEOPW CRA's Board of Commissioners passed Resolution Nos. CRA-R-13-0068, CRA-R-14-0062, CRA-R-18-0042, and CRA-R-21-0001, which authorized the issuance of a grant, in an amount not to exceed Twenty Seven Million Six Hundred Eighty Three Thousand Three Hundred Thirty Three Dollars and Zero Cents ($27,683,333.00) to perform a full -gut rehabilitation to the units within TPPN, to rehabilitate the exterior of the buildings, and to perform site work and common area improvements throughout the Property; and WHEREAS, since the onset of the rehabilitation for this Project, several events have resulted in the need to increase the grant amount, including unforeseen conditions, Covid pandemic related stoppages, the availability of materials and equipment following the Covid pandemic, labor and material cost increases, and additional required work to satisfy the requirements of the City of Miami ("City") Building Department ("Building") and the Code of the City of Miami, Florida, as amended ("City Code"); all of which significantly impacted the construction costs and the temporary relocation expenses for residents; and WHEREAS, the Project is in the final stages of completion on 39 residential units and the TPPN seeks additional grant funds to close-out the Project; and WHEREAS, the Board of Commissioners wishes to transfer unused soft -cost funds approved under Resolution CRA-R-21-0001, totaling One Hundred Twenty -Five Thousand Dollars and Zero Cents ($125,000.00), towards the necessary completion work on the Project; and WHEREAS, the Board of Commissioners wishes to authorize additional funding in an amount not to exceed Three Million Nine Hundred Sixty Thousand Four Hundred Eighty -Three Dollars And Zero Cents ($3,960,483.00) ("Additional Funding"), bringing the total cost of the Project to Thirty -One Million Six Hundred Eighteen Thousand Eight Hundred Sixteen Dollars And Zero Cents ($31,618,816.00) ("Funds"), to TPPN for the completion of the rehabilitation to the Property; and WHEREAS, the Board of Commissioners finds that authorizing this Resolution would further the SEOPW CRA redevelopment goals and objectives; and WHEREAS, based on the recommendation and findings of the Executive Director, it is in the SEOPW CRA's best interest for the Board of Commissioners to authorize, by an affirmative four -fifths (4/5ths) vote, a waiver of competitive sealed bidding procedures, pursuant to Section 18-85 of the City Code, as adopted by the SEOPW CRA, to authorize the Executive Director to negotiate and execute any Page 6 of 7 and all agreements necessary, all in forms acceptable to the General Counsel, with TPPN for provision of grant funds in an amount not to exceed Thirty -One Million Six Hundred Eighteen Thousand Eight Hundred Sixteen Dollars And Zero Cents ($31,618,816.00) subject to the availability of funds; 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. By a four -fifths (4/5th) affirmative vote, after an advertised public hearing, the Executive Director's recommendation and written findings that competitive negotiation methods and procedures are not practicable or advantageous to the SEOPW CRA, pursuant to Section 18-85 of the City Code, as adopted by the SEOPW CRA, and waiving the requirements for said procedures is hereby ratified, approved, and confirmed. Section 3. The Executive Director is hereby authorized to disburse funds, at his discretion, on a reimbursement basis or directly to vendors, upon presentation of invoices and satisfactory documentation from the SEOPW CRA Tax Increment Fund, "Other Grants and Aids" Account No. 10050.920101.883000.0000.00000 to TPPN for the Property for the purpose stated herein. Section 4. The Executive Director is authorized to negotiate and execute an amendment, in a form acceptable to the General Counsel, to the SEOPW CRA's prior agreement with TPPN to provide for the Additional Funding for said purpose. 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 for 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: 4 Br ounsel 5/16/2024 Page 7 of 7