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Home My WebLink AboutCRA-R-24-0046 MemorandumOMNI Board of Commissioners Meeting July 25, 2024 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Damian Pardo and Members of the CRA Board /(dyuLA Isiaa Jones Executive Director Date: July 23, 2024 File: 16406 Subject: 4/5ths Bid Waiver Grant - Rehabilitation and Affordable project located at 2003 N. Miami Ave. Enclosures: 16406 Exhibit A 16406 Proposal 16406 Property Search 16406 Notice to the Public BACKGROUND: The Omni Community Redevelopment Agency (Omni CRA) executes community redevelopment projects following the 2019 CRA Redevelopment Plan ("Plan"). The Agency will contribute to redeveloping 2003 N Miami Avenue, Miami, FL 33127, a severely dilapidated one - hundred -year -old building, into a mixed -use, low-income affordable housing project. The project will provide 11 modern, energy -efficient units and renovate the vacant retail bays to boost street -level activity, increase tax revenue, and support Wynwood's growth. The building requires extensive repairs to the structure of the building, including new plumbing, electrical, and mechanical systems. It has a rich history, including ties to Whitey Bulger and Dolly's Cafe, and currently houses the iconic restaurant Kush, which has temporarily closed due to structural concerns. This redevelopment project is in accordance with the Omni CRA's 2019 Plan, where page 31 of the 2019 Redevelopment Plan states "housing affordability is one of the key programs for the CRA to undertake". The 2019 Redevelopment Plan specifically highlights the importance of addressing housing affordability. Florida Statute 163.350 enables the CRA to establish effective programs aimed at affordable housing and the revitalization of deteriorated properties. Collaboration with the Omni CRA will ensure high -quality standards and address community needs effectively. RECOMMENDATION: Based on the aforementioned background, the need for renovation, and community enhancement, it is recommended that the Board of Commissioners of the Omni Community Redevelopment Agency adopt the attached resolution. This resolution, approved by a four -fifths (4/5ths) affirmative vote, ratifies, confirms, and approves the Executive Director's finding that it is most beneficial for the Omni CRA to provide funding to Kush Property LLC for renovation and community enhancement. FUNDING: $3,100,000.00 has been allocated from the Omni Tax Increment Fund, Account No. 10040.920501.883000.0000.00000 - Other Grants and Aids. City of Miami Page 2 of 5 File ID: 16406 (Revision:) Printed On: 9/12/2025 Omni C R A City of Miami Legislation OMNI CRA Resolution CRA-R-24-0046 OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 16406 Final Action Date:7/25/2024 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, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE EXECUTIVE DIRECTOR'S RECOMMENDATION AND FINDING, ATTACHED AND INCORPORATED AS EXHIBIT "A," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS TO THE CRA 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; ALLOCATING GRANT FUNDS FROM THE CRA'S FISCAL YEAR 2023-2024 BUDGET IN AN AMOUNT NOT TO EXCEED THREE MILLION ONE HUNDRED THOUSAND DOLLARS ($3,100,000.00) FOR A MIXED -USE AFFORDABLE HOUSING DEVELOPMENT PROJECT CONSISTING OF NINE (9) MICRO UNITS AT 80% AREA MEDIAN INCOME ("AMI") AND TWO (2) AT 100% AMI AT THE PROPERTY LOCATED AT 2003 NORTH MIAMI AVENUE, MIAMI, FLORIDA 33127, LOCATED IN THE CRA REDEVELOPMENT AREA, TO KUSH PROPERTY LLC ("GRANTEE"); AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS IN HER DISCRETION; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL AGREEMENTS NECESSARY AND AMENDMENTS, ALL IN FORMS ACCEPTABLE TO THE GENERAL COUNSEL, FOR THE PURPOSES STATED HEREIN; ALL BEING SUBJECT TO THE AVAILABILITY OF FUNDING AND THE RENTS BEING RESTRICTED FOR THIRTY (30) YEARS AS MORE PARTICULARLY DETAILED IN A RESTRICTIVE COVENANT TO BE RECORDED IN THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Omni Redevelopment District Community Redevelopment Agency ("CRA") is tasked with reducing slum and blight within its boundaries; and WHEREAS, Kush Property LLC, a Florida Limited Liability Company ("Grantee"), submitted a request for funding to rehabilitate the property located at 2003 North Avenue Miami, Florida 33127 consisting of commercial space, and eleven (11) total units which after completion will be rented at nine (9) units at eighty (80%) AMI and two (2) units at one hundred percent (100%) AMI ("Project"); and WHEREAS, the 2019 Redevelopment Plan ("Plan") on page 4-32, lists "to find ways to ensure housing remains affordable for all income levels within the district, but particularly for those households' meeting workforce or lower income guidelines," as an objective of the CRA; and City of Miami Page 3 of 5 File ID: 16406 (Revision:) Printed On: 9/12/2025 WHEREAS, the Plan on page 4-34, states the CRA can "create and implement programs to assist target income households rehabilitate, and/or maintain unit they currently own" and "devise and implement programs to assist housing providers in creating affordable units for target households"; and WHEREAS, the Grantee requests grant funding for the Project in an amount not to exceed three Million One Hundred Thousand Dollars ($3,100,000.00); and WHEREAS, the grant funding for the Project will not be disbursed until verification of the total project funding structure is complete; and WHEREAS, the success of the Project will result in accomplishing the stated objectives of the Plan; and WHEREAS, based on the recommendation and finding of the Executive Director, attached and incorporated as Exhibit "A", 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, for the allocation of grant funds for the Project in an amount not to exceed Three Million One Hundred Thousand Dollars ($3,100,000.00) to be disbursed subject to the availability of funding and the Executive Director's discretion; 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 finding, attached and incorporated as Exhibit "A", 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. Funds in an amount not to exceed Three Million One Hundred Thousand Dollars ($3,100,000.00) for the Project are allocated, subject to the availability of funding and the Executive Director's discretion, from CRA Fiscal Year 2023-2024 budget, to assist with the Project as requested. Section 4. The Executive Director is authorized to negotiate and execute any and all agreements and amendments, including any and all necessary documents, all in forms acceptable to the General Counsel, for the purposes stated herein, including but not limited to a restrictive covenant, with rents being restricted for a period of Thirty (30) years, detailing rent restrictions which is to be recorded in the public records of Miami - Dade County, Florida. City of Miami Page 4 of 5 File ID: 16406 (Revision:) Printed On: 9/12/2025 Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: k• ORGE(K. WYSONI III, GENERAL COUNSEL City of Miami Page 5 of 5 File ID: 16406 (Revision:) Printed On: 9/12/2025