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HomeMy WebLinkAboutCRA-R-25-0023 MemorandumOMNI Board of Commissioners Meeting June 17, 2025 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Damian Pardo and Members of the CRA Board Isiaa Jones Executive Director Date: June 20, 2025 File: 17639 Subject: Wynwood Haus, LLC - Consent to Collateral Assignment Enclosures: BACKGROUND: The purpose of this memorandum is to recommend that the Board of Commissioners ("Board") of the Omni Redevelopment District Community Redevelopment Agency ("CRA") approve and adopt the enclosed Resolution. This Resolution authorizes the Executive Director to negotiate and execute consent to the collateral assignment of the redevelopment agreement. JUSTIFICATION: On April 12, 2022, the CRA and Wynwood Haus, LLC (the "Developer") entered into an Economic Incentive Agreement for Mixed -Use And Mixed -Income Project ("Redevelopment Agreement"), to underwrite a portion of the costs to develop a mixed -use and mixed -income housing development consisting of approximately Two Hundred Twenty -Four (224) housing units ("Project") to be located at 23 NE 17th Terrace, Miami, Florida (the "Property"). The duration of the Redevelopment Agreement was dependent upon the life of the CRA being extended. On April 10, 2025, the City of Miami Commission adopted Resolution R-25-0131 authorizing the CRA's extension of life to 2047. Based on the CRA's extension of life, the Redevelopment Agreement now extends to March 31, 2047. The Redevelopment Agreement provides that in exchange for the Developer reserving a total of 100 residential units at the Property to be rented at 100%, 120%, and 140% Area Median Income ("AMI"), the CRA will pay to the Developer, its assigns, or successors interest, an incentive payment equal to 95% of the Project's Development TIF annually, or Seven Hundred Seventy -Eight Thousand, Eighty -Six Dollars and 00/100 ($778,068.00) annually, whichever is less, per year, until March 31, 2047, for a total amount not to exceed Twelve Million, Nine Hundred Thirty -Five Thousand, Six Hundred Seventy -Four Dollars and Sixty -One 0/100 ($12,935,674.61). The Developer is now looking to obtain refinancing from Fannie Mae to pay off an existing construction loan. As such, the Developer is seeking to assign the total of the Project's Development TIF due under the Redevelopment Agreement to Fannie Mae as collateral for the refinancing. Fannie Mae, however, requires the Developer to obtain the CRA's consent to the assignment of Development TIF before execution of the assignment. Section 23 of the Redevelopment Agreement provides that the Development TIF cannot be assigned without prior CRA Board approval. Section 23 of the Redevelopment Agreement also provides that consent to assignment shall not be unreasonably withheld or conditioned by the CRA Board. The provisions of the consent to assignment are acceptable as to form and correctness by the General Counsel. This Resolution carries out the objectives of the 2019 Omni Redevelopment Plan. FUNDING: None. City of Miami Page 2 of 4 File ID: 17639 (Revision:) Printed On: 9/16/2025 Omni C R A City of Miami Legislation OMNI CRA Resolution CRA-R-25-0023 OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 17639 Final Action Date:6/17/2025 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI COMMUNITY DEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE A CONSENT TO COLLATERAL ASSIGNMENT OF THE ECONOMIC INCENTIVE AGREEMENT BETWEEN THE CRA AND WYNWOOD HAUS, LLC FOR MIXED -USE AND MIXED -INCOME DEVELOPMENT PROJECT OF PROPERTIES LOCATED AT FOLIOS 01-3136-003-0140, 01-3136-003-0150, 01-3136-003-0160, 01- 3136-003-0170, 01-3136-003-0180, AND 01-3136-003-0190, ALL LOCATED IN THE CRA REDEVELOPMENT AREA; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE ANY AND ALL DOCUMENTS NECESSARY, INCLUDING ANY AND ALL AMENDMENTS THERETO, ALL IN FORMS ACCEPTABLE TO THE GENERAL COUNSEL, FOR THE PURPOSES STATED HEREIN AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on September 24, 2020, the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency, adopted Resolution No. CRA-R- 20-0014, which authorized a rebate to Wynwood Haus, LLC ("Developer") of the Tax Increment Finance ("TIF") revenues generated by the development of the project located at Folios 01- 3136-003-0140, 01-3136-003-0150, 01-3136-003-0160, 01-3136-003-0170, 01-3136-003-0180, and 01-3136-003-0190 (collectively, the "Property") in an amount not to exceed Ninety -Five percent (95%) of the TIF collected from the Property annually until 2030, or until 2047 if the life of the Omni Redevelopment District Community Redevelopment Agency ("CRA") was extended to 2047, for a total amount not to exceed Twelve Million Nine Hundred Thirty Five Thousand Six Hundred Seventy Four Dollars and 00/100 ($12,935,674.61); and WHEREAS, on April 12, 2022, the CRA and Developer entered into an Economic Incentive Agreement for Mixed -Use And Mixed -Income Project ("Redevelopment Agreement"), to underwrite a portion of the costs to develop the Property consisting of approximately Two Hundred Twenty -Four (224) housing units ("Project") to be located at 23 NE 17th Terrace, Miami, Florida; and WHEREAS, on April 10, 2025, the City of Miami ("City") Commission adopted Resolution No. R-25-0131, which finalized the extension of life of the CRA to 2047; and WHEREAS, based on the CRA's extension of life, the TIF revenues generated by the development of the Property shall be until 2047; and WHEREAS, the Developer is now seeking consent to a collateral assignment of the TIF revenues authorized pursuant to the Redevelopment Agreement for refinancing of the Property; and City of Miami Page 3 of 4 File ID: 17639 (Revision:) Printed On: 9/16/2025 WHEREAS, the 2010 Redevelopment Plan ("Plan") on page 41, section D-2 lists the objective of the CRA "to create a variety of housing"; and WHEREAS, page 42, Sections A-1 and A-3 of the Plan also lists as an objective of the CRA to "Provide incentives for redevelopment of blighted properties"; and WHEREAS, authorizing the consent to the collateral assignment of the Redevelopment Agreement furthers the stated objectives of the Plan; 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 this Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. The Executive Director is authorized to negotiate and execute a Consent to Collateral Assignment of the TIF revenues authorized in the Redevelopment Agreement between the CRA and Developer for the Property. Section 3. The Executive Director is further authorized to negotiate and execute any and all documents necessary, including any and all amendments thereto, all in forms acceptable to the General Counsel, for the purposes stated herein. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 2O&-iRGE . WYSON III, ^ENERAL COUNSEL City of Miami Page 4 of 4 File ID: 17639 (Revision:) Printed On: 9/16/2025