HomeMy WebLinkAboutCRA-R-25-0013 MemorandumSEOPW Board of Commissioners Meeting
April 10, 2025
SOUTHEAST OVERTOWN/PARK WEST
COMMUNITY REDEVELOPMENT AGENCY
INTER -OFFICE MEMORANDUM
To: Board Chair Christine King Date: April 4, 2025
and Members of the CRA
Board File: 17452
From: James McQueen
Executive Director
Subject: Grant to J.E.J. Properties, Inc. for
renovations at the historic Dunns-
Josephine Hotel.
Enclosures: File # 17452 - Exhibit A
File # 17452 - Backup
File # 17452 - Notice to the
Public
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, attached and incorporated herein as Exhibit "A," that competitive
negotiation methods and procedures are not practicable or advantageous, pursuant to Section(s) 18-85 and
18-86 of the Code of the City of Miami, Florida, as amended ("City Code"), as adopted by the SEOPW
CRA, and waiving said procedures for competitive sealed bidding, authorizing the Executive Director to
disburse funds, at his discretion, on a reimbursement basis or directly to vendors, upon presentation of
invoices and satisfactory documentation, subject to the availability of funding, authorizing additional
grant funding in an amount not to exceed Thirty -Four Thousand Seven Hundred Dollars and Twenty -Five
Cents ($34,700.25) ("Additional Funding") to assist J.E.J. Properties, Inc., a Florida for -profit corporation
("JEJ"), for the renovation and rehabilitation of the Dunns-Josephine Hotel, located at 1028 N.W. 3'd
Avenue, Miami, Florida 33136 ("Property"), and further clarifying that funds may be used towards
project related soft costs including insurance, engineering fees, and permit fees ("Purpose").
It is recommended that the Board of Commissioners of the SEOPW CRA approve and adopt the attached
Resolution authorizing the allocation of Additional Funding, for a total project cost of Nine Hundred
Thirty -Two Thousand Twenty -One Dollars and Twenty Cents ($932,021.20) ("Funds").
The Dunns-Josephine Hotel ("Hotel") has been providing quality service to their guests since 2019, while
employing current Overtown residents. The Hotel, originally built in 1938, needs significant
improvements and repairs to address structural concerns, mold abatement, sinking floors, rotting wood
and termites, as well as water intrusion issues. The building is placed in a prominent area of the business
corridor of N.W. 3'd Avenue within the heart of the up-and-coming Culture and Entertainment District.
On July 25, 2024, the Board of Commissioners adopted Resolution CRA-R-24-0051, which authorized
the Executive Director to issue a grant in an amount not to exceed Eight Hundred Ninety -Seven Thousand
Three Hundred Twenty Dollars and Ninety -Five Cents ($897,320.95) to support the renovation and
rehabilitation of the Property. Since then, JEJ has been unable to provide the necessary insurance levels
required by the City of Miami ("City") Risk Management Department, due to funding issues for costly
policies, such as Builder's Risk and General Liability. JEJ is requesting additional funding to cover the
foregoing costs. In addition, this Resolution clarifies that grant funds will be used to cover other project
related soft costs, such as engineering and permit fees.
It is recommended that the Board of the SEOPW CRA approve and adopt the attached Resolution,
authorizing the allocation of the Funds to JEJ for the Purpose stated herein.
JUSTIFICATION:
Pursuant to Section 163.340(9), Florida Statutes (the "Act") community redevelopment means
"undertakings, activities, or projects of a ... community redevelopment agency in a community
redevelopment area for the elimination and prevention of the development or spread of slums and
blight...."
Section 2, Goal 1 of the 2018 Southeast Overtown/Park West Community Redevelopment Agency Plan
Update (the "Plan") lists the "preserv[ation] of historic buildings and community heritage," as a stated
redevelopment goal.
Section 2, Principle 8, of the Plan provides that " [o]Ider buildings that embody the area's cultural past
should be restored.
Section 2, Goal 4 of the Plan lists the "creati[on of] jobs within the community" as a stated redevelopment
goal.
Section 2, Principle 6, of the Plan provides that to "address and improve the neighborhood economy and
expand the economic opportunities of present and future residents ..." as a stated redevelopment
principle.
FUNDING:
Previous allocation: $897,320.95
Additional funding: $34,700.25
Total funding: $932,021.20 from Other Grants and Aids - Account No.
10050.920101.883000.0000.00000.
FACT SHEET:
Company name: J.E.J. Properties, Inc.
Address: 1028 N.W. 3rd Avenue, Unit 104, Miami, Florida, 33136.
Scope of work or services (Summary): JEJ is requesting additional funding to cover soft costs
related to required insurance for the previously funded construction work at the historic "Dunns-
Josephine Hotel."
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AGENDA ITEM
FINANCIAL INFORMATION FORM
SEOPW CRA
CRA Board Meeting Date: April 10, 2025
CRA Section:
Brief description of CRA Agenda Item:
Authorizing additional funding in an amount not to exceed $34,700.25 for a total project
cost of $931,021.20 to assist JEJ Properties Inc. for the renovation of the Dunns-
Josephine Hotel.
Project Number
YES, there
Account Code:
(if applicable):
are sufficient funds in Line Item:
10050.920101.883000.0000.00000 Amount: $ 3 4 , 7 0 0.2 5
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:
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Approved by:
Approval:
Executive Director 4/3/2025
1/1\
Miguel A Valcntir , f nance Officer 4/3/2025
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Southeast Overtown/Park West
Community Redevelopment Agency
File Type: CRA Resolution
Enactment Number: CRA-R-25-0013
File Number: 17452 Final Action Date:4/10/2025
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,
ATTACHED AND INCORPORATED HEREIN AS EXHIBIT "A," THAT COMPETITIVE
NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR
ADVANTAGEOUS, PURSUANT TO SECTION(S) 18-85 AND 18-86 OF THE CODE OF
THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), AS ADOPTED BY
THE SEOPW CRA; WAIVING SAID PROCEDURES FOR COMPETITIVE SEALED
BIDDING; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT
HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS,
UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION,
SUBJECT TO THE AVAILABILITY OF FUNDING, FROM THE CORRESPONDING
ACCOUNT NO. 10050.920101.883000.0000.00000 "OTHER GRANTS AND AIDS";
AUTHORIZING ADDITIONAL GRANT FUNDING IN AN AMOUNT NOT TO EXCEED
THIRTY-FOUR THOUSAND SEVEN HUNDRED DOLLARS AND TWENTY-FIVE
CENTS ($34,700.25) ("ADDITIONAL FUNDING") FOR A TOTAL PROJECT COST OF
NINE HUNDRED THIRTY-TWO THOUSAND TWENTY-ONE DOLLARS AND TWENTY
CENTS ($932,021.20) ("FUNDS") TO ASSIST J.E.J. PROPERTIES, INC., A FLORIDA
FOR -PROFIT CORPORATION ("JEJ"), FOR THE RENOVATION AND
REHABILITATION OF THE DUNNS-JOSEPHINE HOTEL, LOCATED AT 1028 N.W.
3RD AVENUE, MIAMI, FLORIDA 33136 ("PROPERTY"); FURTHER CLARIFYING
THAT FUNDS MAY BE USED TOWARDS PROJECT RELATED SOFT COSTS
INCLUDING INSURANCE, ENGINEERING FEES, AND PERMIT FEES ("PURPOSE");
FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND
EXECUTE AN AGREEMENT, INCLUDING ANY AND ALL DOCUMENTS
NECESSARY, ALL IN FORMS ACCEPTABLE TO COUNSEL, FOR THE PURPOSE
STATED HEREIN; PROVIDING FOR THE INCORPORATION OF RECITALS AND 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 ("Redevelopment Area") in accordance with the 2018 Updated Southeast Overtown/Park West
Redevelopment Plan (the "Plan"); and
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WHEREAS, pursuant to Section 163.340(9) Florida Statutes, "community redevelopment means
projects of a ... community redevelopment agency in a community redevelopment area for the
elimination and prevention of the development or spread of slum and blight"; and
WHEREAS, Section 2, Goal 1, of the Plan lists the "preserv[ation] of historic buildings and
community heritage," as a stated redevelopment goal; and
WHEREAS, Section 2, Principle 8, of the Plan provides that " [o]Ider buildings that embody the
area's cultural past should be restored"; and
WHEREAS, Section 2, Goal 4, of the Plan lists the "creat[ion of] jobs within the community" as
stated redevelopment goal; and
WHEREAS, Section 2, Principle 6, of the Plan provides to "address and improve the neighbor-
hood economy and expand the economic opportunities of present and future residents and businesses," as
a stated redevelopment principle; and
WHEREAS, on July 25, 2024, the Board of Commissioners adopted Resolution No. CRA-R-24-
0051, authorizing the Executive Director to issue a grant in an amount not to exceed Eight Hundred
Ninety -Seven Thousand Three Hundred Twenty Dollars and Ninety -Five Cents ($897,320.95) to J.E.J.
Properties, Inc., a Florida for -profit corporation ("JEJ"), to support the renovation and rehabilitation of the
historic Dunns-Josephine Hotel, built in 1938, located at 1028 N.W. 3rd Avenue, Miami, Florida, 33136
("Property"); and
WHEREAS, JEJ is currently unable to begin the rehabilitation project due to funding issues
related to the purchase of necessary insurance policies to meet the City of Miami ("City") and SEOPW
CRA requirements, such as Builder's Risk and General Liability; and
WHEREAS, JEJ now seeks additional funds to meet the requirements of the City and SEOPW
CRA, which will be applied to project related soft costs, including insurance, engineering fees, and permit
fees, that would allow the project to commence and conclude prior to the end of 2025 ("Purpose"); and
WHEREAS, the Board of Commissioners wishes to authorize additional grant funds in an amount
not to exceed Thirty -Four Thousand Seven Hundred Dollars and Twenty -Five Cents ($34,700.25)
("Additional Funding") for a total project cost of Nine Hundred Thirty -Two Thousand Twenty -One
Dollars and Twenty Cents ($932,021.20) ("Funds") for the Purpose stated herein; and
WHEREAS, the Board of Commissioners finds that adopting this Resolution would further the
redevelopment goals and objectives of the SEOPW CRA; and
WHEREAS, based on the recommendation and findings of the Executive Director, attached and
incorporated herein as Exhibit "A," 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 Sections 18-85 and 18-86 of the Code of the City of Miami, Florida, as
amended ("City Code"), as adopted by the SEOPW CRA, to allocate said Funds, subject to availability,
and authorize the Executive Director to negotiate and execute any and all documents necessary, all in
forms acceptable to Counsel, with JEJ for the Purpose stated herein;
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:
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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. Pursuant to Sections 18-85 and 18-86 of the City Code, as adopted by the
SEOPW CRA, by a four -fifths (4/5th) affirmative vote, after an advertised public hearing, the Executive
Director's recommendation and written findings, attached and incorporated herein as Exhibit "A," that
competitive negotiation methods and procedures are not practicable or advantageous to the SEOPW CRA,
to allocate the Funds to JEJ for the Purpose stated herein, and waiving the requirements for said
procedures is hereby ratified, approved, and confirmed.
Section 3. The Executive Director is hereby authorized' to disburse the Funds, at his
discretion, on a reimbursement basis or directly to vendors, upon presentation of invoices and satisfactory
documentation from Other Grants and Aids - Account No. 10050.920101.883000.0000.00000 to JEJ for
the Purpose stated herein.
Section 4. The Executive Director is authorized' to negotiate and execute an agreement,
including any and all necessary documents, all in forms acceptable to Counsel, for said Purpose.
Section 5. This Resolution shall become effective immediately upon its adoption.
APPROVED AS TO FORM AND LEGAL SUFFICIENCY:
e Br ounsel 4/3/2025
1 The herein authorization is further subject to compliance with all legal requirements that may be imposed,
including but not limited to those prescribed by applicable State law, City Charter and City Code provisions, as
adopted by the SEOPW CRA.
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