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HomeMy WebLinkAboutCRA-R-24-0036 MemorandumSEOPW Board of Commissioners Meeting May 23, 2024 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King Date: June 11, 2024 and Members of the CRA Board File: 16083 From: James McQueen Executive Director Subject: Avanti Residential — Arte Grand Central TIC V, LLC - Housing Subsidy Agreement Enclosures: File # 16083 - Exhibit A File # 16083 - Exhibit B BACKGROUND: A Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA"), with attachment(s) the Housing Subsidy Agreement ("Agreement"), is attached hereto and incorporated herein as Exhibit "A", between the SEOPW CRA and Avanti Residential — Arte Grand Central TIC I, LLC; Avanti Residential — Arte Grand Central TIC II, LLC; Avanti Residential — Arte Grand Central TIC III, LLC; Avanti Residential — Arte Grand Central TIC IV, LLC; and Avanti Residential — Arte Grand Central TIC V, LLC; each a Delaware limited liability company (collectively, "Owner") ("Purpose"). The Agreement will subsidize (100) One Hundred affordable mixed rental units. The financial commitment for this Agreement is (i) on an annual basis during the term of the Agreement, the SEOPW CRA shall make a fixed payment to the Owner equal to Six Hundred Fifteen Thousand Dollars ($615,000.00) per year continue for five (5) years, and may thereafter automatically renew for two (2) successive five (5) year periods, commencing in fiscal year 2025; and (ii) on an annual basis during the term of the Agreement, the SEOPW CRA shall make a variable payment to Owner equal to the difference between the fair market rent for the new units (as determined by Florida Housing Finance Corporation pursuant to the Guidelines) and forty percent (40%) of the annual income of the qualified referrals, and is subject to the availability of funding. The Executive Director desires to execute Exhibit "A" and to authorize the Executive Director to disburse funds derived, from the City of Miami resolution R-24-0109, as Exhibit `B". JUSTIFICATION: Florida Statutes, Section 163.370(2)(e)(4) of the Community Redevelopment Act authorizes the disposal of real property. WHEREAS, Florida Statutes, Section 163.370(2)(e)(4) of the Community Redevelopment Act authorizes the disposal of real property; and WHEREAS, Section 2, Goal 3 the Plan lists the "creat[ion of infill housing, diversity in housing types, and retaining affordable housing, as a stated redevelopment goal; and WHEREAS, Section 2, Goals 4 and 6 of the Plan lists the "creat[ion of jobs within the Community" and "improving quality of life for residents" as stated redevelopment goals; and WHEREAS, Section 2, Principle 4 of the Plan provides that "[t]he neighborhood ... retain access to affordable housing ..." as a stated redevelopment principle; and WHEREAS, Section 2, Principle 6 of the Plan further provides that in order to "address and improve the neighborhood economy and expand economic opportunities of present and future residents and businesses[,] [it] is necessary to] support and enhance existing businesses and ... attract new businesses that provide needed services and economic opportunities ..." as a stated redevelopment principle; and FUNDING: $615,000.00 per year, continue for five (5) years, commencing in fiscal year 2025, and shall thereafter automatically renew for two (2) successive five (5) year periods allocated from account title "Other Grants and Aids," account code no. 10050.920101.883000.0000.00000. FACT SHEET: Company name: Avanti Residential — Arte Grand Central TIC V, LLC. Address: 1700 Broadway, Suite 200, Denver, Colorado 80290 Funding request: $615,000.00 per year. Term: Five (5) years, commencing fiscal year 2025, and shall thereafter automatically renew for two (2) successive five (5) year periods. Scope of work or services (Summary): (100) One Hundred affordable mixed rental units composed of studios, one (1) and two (2) bedroom units. Page 2 of 6 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: May 23, 2024 CRA Section: Brief description of CRA Agenda Item: Authorizing a Housing Subsidy Rental Agreement in an amount not exceed $615,000.00 annually. Project Number YES, there Account Code: (annually) (if applicable): are sufficient funds in Line Item: 10050.920101.883000.0000.00000 Amount: $ 61 5 , 0 0 0.0 0 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: This allocation of funds will derive from City's share (45% Clawback pursuant to Global Agreement) to be remained in the SEOPW CRA's budget commencing FY 2025. Page 3 of 6 Approved by: Approval: Miguel A Valcnt r , Finance Officer Executive Director 5/16/2024 5/16/2024 Page 4 of 6 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-24-0036 File Number: 16083 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), APPROVING A HOUSING SUBSIDY AGREEMENT ("AGREEMENT"), BETWEEN THE SEOPW CRA AND AVANTI RESIDENTIAL — ARTE GRAND CENTRAL TIC I, LLC; AVANTI RESIDENTIAL — ARTE GRAND CENTRAL TIC II, LLC; AVANTI RESIDENTIAL — ARTE GRAND CENTRAL TIC III, LLC; AVANTI RESIDENTIAL — ARTE GRAND CENTRAL TIC IV, LLC; AND AVANTI RESIDENTIAL — ARTE GRAND CENTRAL TIC V, LLC; EACH A DELAWARE LIMITED LIABILITY COMPANY (COLLECTIVELY, "OWNER"), ATTACHED AND INCORPORATED HEREIN AS EXHIBIT "A"; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS DERIVED, FROM THE CITY OF MIAMI RESOLUTION R-24-0109, AS EXHIBIT "B", SUBJECT TO THE AVAILABILITY OF FUNDING FROM ACCOUNT TITLE "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000, IN AN AMOUNT NOT TO EXCEED SIX HUNDRED FIFTEEN THOUSAND DOLLARS AND ZERO CENTS ($615,000.00) ("FUNDS") ANNUALLY; AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ANY AND ALL DOCUMENTS REQUIRED TO CONSUMMATE THE AGREEMENT; PROVIDING FOR INCORPORATION OF RECITALS; 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 the "creat[ion of infill housing, diversity in housing types, and retaining affordable housing, as a stated redevelopment goal; and WHEREAS, Section 2, Goals 4 and 6 of the Plan lists the "creat[ion of jobs within the Community" and "improving quality of life for residents" as stated redevelopment goals; and WHEREAS, Section 2, Principle 4 of the Plan provides that "[t]he neighborhood ... retain access to affordable housing ..." as a stated redevelopment principle; and WHEREAS, Section 2, Principle 6 of the Plan further provides that in order to "address and improve the neighborhood economy and expand economic opportunities of present and future residents and businesses[,] [it] is necessary to] support and enhance existing businesses and ... attract new businesses that provide needed services and economic opportunities ..." as a stated redevelopment principle; and Page 5 of 6 WHEREAS, the Housing Subsidy Agreement ("Agreement") is attached hereto and incorporated herein as Exhibit "A"; and WHEREAS, the financial commitment for this Agreement is Six Hundred Fifteen Thousand Dollars and Zero Cents ($615,000.00) ("Funds") annually, commencing in fiscal year 2025, per year continued for five (5) years, and may thereafter automatically renew for two (2) successive five (5) year periods, and is subject to the availability of funding; and 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 Board of Commissioners hereby, as attached hereto and incorporated herein as Exhibit "A", and approves the terms contained therein. Section 3. The Executive Director is hereby authorized to execute the Housing Subsidy Agreement (Exhibit "A"), and all in forms acceptable to Counsel, to effectuate said Agreement, with funds allocated from account title "Other Grants and Aids," account code no. 10050.920101.883000.0000.00000, in an amount not to exceed Six Hundred Fifteen Thousand Dollars and Zero Cents ($615,000.00) ("Funds"), annually, subject to the availability of funding, upon presentation of invoices and satisfactory documentation. Section 4. The Executive Director is further authorized to execute any additional terms to the Agreement, including any and all necessary documents and all -in forms acceptable to the General Counsel, for said purpose as set forth in Exhibit "B", and to disburse Funds, derived from the City of Miami resolution R-24-0109. 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: 4 ounsel 5/16/2024 Page 6 of 6