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HomeMy WebLinkAboutCRA-R-25-0029 ProposalDr. Evalina Bestman, PhD 9230 NW 13th Court Miami, FL 33147 ewbestman©yahoo.com Nov 10, 2024 Isiaa Jones, Executive Director Omni Community Redevelopment Agency 1401 N Miami Avenue Miami, FL 33136 Dear Ms. Jones, I am pleased to submit a proposal for the development of the vacant properties at 1433-1435 NW 1 Court (folios 01-3125-048-1730 & 01-3125-048-1740) into a mixed -income, 11-unit, affordable housing project tailored to the needs of Overtown residents. This project presents a significant opportunity to address critical housing shortages and uplift our community. Having grown up in Overtown, I have a deep connection to this neighborhood. My career has been dedicated to serving our city's black residents, with a particular focus on fostering healthy and inclusive communities. Developing high -quality, affordable housing for families in Overtown has long been a personal goal of mine, driven by a desire to give back to the community that shaped me. Our proposed development is designed with the specific needs of Overtown families in mind. The plan includes modern, energy -efficient units that offer safe and comfortable living spaces for families of various sizes and income levels. We also envision community spaces, green areas, and essential amenities that will promote a vibrant and healthy community life. To ensure the success of this project, our team has conducted research and engaged with local residents. We are confident that our development will not only provide much -needed housing but also stimulate economic growth, create jobs, and foster a sense of pride and ownership within the community. We are eager to collaborate with the Omni Community Redevelopment Agency to bring this vision to life. We are committed to maintaining transparent communication and ensuring the highest standards of quality throughout the project. Thank you for considering our proposal. We look forward to the possibility of working together to revitalize this historic neighborhood. Sincerely, Dr. Evalina Bestman Proposal for Omni CRA funding for Dr. Evalina Bestman - Overtown Multifamily Apartments 1433-1435 NW 1st Court: 11-unit Multifamily Apartments Project Introduction Dr. Evalina Bestman was born and raised about a block away from these properties in Overtown. She has gone on to make a successful career in Miami, founding the New Horizons Community Health Center in Allapattah—which serves both adults and children with mental health needs providing critical counseling services as well as supportive housing —and serving as a founding director of the Chapman Partnership for the Homeless based in the Omni neig hborhood. Having spent her life in service to her community, it is her intention to use the land she owns to build a set of buildings in Overtown and Allapattah where people with lower incomes can safely and comfortably live, close to jobs, transit, and the neighborhood community and character they know. Bestman Multifamily Apartments This multi -site multifamily project will use a small vacant infill lots in Overtown and will comprise a multifamily building of 11 units, both 1-bedroom, 2-bedroom, and 3-bedroom units, in a typology that fits in with the historic character of the Overtown neighborhood. Project Map ww NW 20TH ST ._. NE 20TH ST 4- To Jackson Hospital mBestman Dorsey (- To County Courthouse School Board Metromover NE YSTH ST Bestman Station 4duttifamiiy w asS4pr 0' a m a a N 0 Z To Miami Beach VENETIAN CSWY MACARTHUR CSWY Development Team Dr. Evalina Bestman - Owner Developer Dr. Bestman is a Licensed Psychologist and former Chief Executive Officer of New Horizons Community Mental Health Center. She was also a Research Associate Professor at the University of Miami, Department of Physiatry and a founding professor at Florida International University (1972). She is a Native Miamian born to the late David and Florence Poitier-Williams at 1630 NW 1st Court (Overtown). Her early education began at St. Agnes Episcopal Church Kindergarten and Phyllis Wheatley Elementary School. She graduated as Valedictorian of Miami Northwestern Senior High School. She continues as a member of The Historic St. Agnes Episcopal Church (Overtown). Dr. Bestman was invited by Alvah Chapman to join the Miami -Dade Homeless Task Force, which developed the Miami Dade Homeless Plan. She has been a member of Chapman Partnership for the Homeless Board of Directors, Executive Committee since its inception. She has further demonstrated a commitment to housing for low-income persons including disabled individuals for over forty years. Under her leadership, New Horizons Community Mental Health Center has been a provider of mental health, substance use and social services including residential for fifty years in the City of Miami including Overtown. Dr. Bestman has co-authored numerous publications one of which is: Homelessness and Mental Illness; A Transcultural Family Perspective — Treating the Mentally III. She has received many honors some of which are: Axa Advisor Lifetime Achievement Award, Healthcare Hero, Greater of Miami Chamber of Commerce; Big Brothers, Big Sisters Miracle Maker Award; Five 5000 Role Models of Excellence as a Distinguish Bahamian American; Chapman Partnership for the Homeless Take A Walk In Her Shoes Award for dedicated community services. The Golden Ads Corporation Building in Allapattah was renamed The Dr. Evalina Bestman Professional Building. Most recently, the New Horizons' Board of Directors renamed the Center Dr. Evalina Bestman New Horizons Community Mental Health Center. Development Team Continued 114 Robert Chisholm and Moises Romano, R. E. Chisholm Architects, Inc. - Owner's Rep and Architect Since 1982, R.E. Chisholm Architects have provided services in Architecture, Planning, Interior Design, and Urban Design, executed and delivered with the highest technology. Chisholm Architects has extensive experience in a variety of project types over the last 42 years. Among the firm's clients are corporate, municipal, state, and federal agencies, private clients, public and private institutions. The firm has had extensive experience in the planning, development, design, and construction of governmental, institutional, corporate, educational, transportation, commercial and housing projects. Tracey Slavens and Wesley Huevia, LSN Partners, LLC - Land Use & Legal Tracy Slavens, Partner at LSN Partners, LLC, is highly regarded for her deep expertise in land use, zoning, and government affairs. Tracy uses this specialized knowledge to assist and advise clients regarding land use, zoning, environmental, and legislative matters on the county and municipal levels. Additionally, Tracy helps clients obtain development approvals and vested rights for all types of residential, commercial, office, hospitality, and industrial projects and assists clients with permitting, platting, water and sewer, and concurrency issues. Tracy's primary focus is South Florida, with a particular emphasis on Miami - Dade County and its numerous municipalities. Sandra Socarras, SoFL Design Group, Inc - Capacity Building Mentor, Miami Homes For All Sandra Socarras earned her Bachelor of Arts in Biology from the University of Miami and a graduate degree in Management from Harvard University. She continued to explore her passion, earning a Master of Architecture degree from Florida International University. Sandra is driven by a sense of community and inspired by the local Ecology that makes South Florida unique. Her approach to each design project is based on gaining a deep understanding of the people, the climate, the culture, and the historical context of a site and place. She advocates for communities facing climate change and resolves to propose spaces that promote well-being, preservation and a sustainable future. Neighborhood Need Downtown Miami is in the midst of a construction boom, symbolizing growth and urban revitalization. Yet, this expansion conceals a critical issue: Miami faces a severe housing affordability crisis. Rising housing costs coupled with relatively low wages have made the city one of the least affordable in the nation, with the shortage of affordable housing particularly acute in neighborhoods like Overtown. Here, residents struggle with both gentrification pressures and a specific scarcity of quality, affordable 2- and 3-bedroom units, which are essential for families and larger households. Overtown's challenges are not new; redlining, and the construction of 1-395 in the 1960s left lasting impacts, disrupting the neighborhood's social fabric and economic vitality. As the interstate divided the community, thousands of residents were displaced, businesses closed, and once -vibrant streets became fragmented and isolated. While development surges across the Omni CRA, much of Overtown has struggled to regain its footing. High predevelopment costs and complex financing often deter property owners from investing in vacant or neglected sites, which are frequently sold to outside investors seeking to consolidate land. The CRA has committed to assisting Overtown's residents and landowners in building out the neighborhood without displacing the residents. In its amended Redevelopment Plan (pages 4- 32 and 5-56), the CRA emphasizes housing affordability as a central priority, outlining several measures to support development: "To Assist For -Profit Housing Providers in the CRA could: 2) Pay some portion of development costs such as impact or permit fees 3) Provide a direct cash subsidy in the form of a rebate equal to a percentage of the increases in taxes paid over a defined period of time after completion if affordable units are provided" 6) Housing Affordability - The CRA should fund established and creative new ways to increase the stock of workforce and lower income affordable housing within the district. GOALS: a) Create project -specific developer incentives to ensure that new or significantly redeveloped residential projects in the CRA contain a sufficient number of units that are affordable to the target populations." The Project and accompanying request seek financial support from the CRA to underwrite the development of residential units, specifically for low-income and workforce households, and asks the CRA to provide the Applicant with a project -specific incentive. This initiative seeks financial backing from the CRA to support the creation of housing solutions targeted for low- and extremely -low income residents. The request entails granting the applicant special incentives tailored to the project, underscoring the CRA's commitment to making affordable housing more accessible and supporting the development of inclusive, thriving communities. To address Miami's housing crisis effectively, a focused effort on neighborhoods like Overtown is essential, where the need for affordable housing is particularly pressing, but too many are being displaced during its construction. The CRA's initiatives to foster affordable housing development are critical to sustaining the economic vitality of these communities. By supporting projects that include affordable units and offering financial incentives for developers, there is potential to mitigate the effects of displacement and ensure that long-time residents have access to quality, affordable housing. This approach not only addresses immediate needs but also aligns with a broader vision of creating a more equitable and inclusive Miami for all its residents. Proposed Schedule of Values Multifamily: The total development costs are estimated at $3,314,963. Financing Plan & CRA Request This project is recipient of the 3C Early Predevelopment Assistance Grant from Miami Homes For All —a nonprofit champion for low-income residents across the County who struggle to find a safe and affordable place to live —for up to $100,000 in costs associated with early predevelopment of properties like this, including soft costs such as architecture, surveys, title search, zoning research, and more. This allows the long-time land owners such as Dr. Bestman to accurately assess the costs and feasibility of building affordable infill housing on small properties, as well as assist with some of the predevelopment needs such as architecture and zoning. These sources still leave a gap in the high costs of construction and financing in Miami today. To offset the high cost of construction and lending, we ask the Omni CRA to support maintaining and revitalizing housing affordable to Overtown residents, preventing displacement of residents as well as the loss of mom & pop ownership in the community and contribute a forgivable loan of $2,976,798 for a portion of the interior and exterior improvements of the Multifamily Apartments building. Affordability Plan Multifamily Building: This neighborhood -oriented project will feature mixed -affordability. In the Multifamily building The 11 units are expected to follow this pattern of rental affordability outlined by the City of Miami's Attainable Housing Ordinance: • 2 units will be affordable to Extremely Low -Income tenants making no more than 30% AMI. • 3 units will be affordable to low income residents making no more than 60% AMI. • 3 Units, including one 3-bedroom will be affordable to moderate income residents making between 60% — 80% AMI • 2 Units will be affordable to moderate -income residents making between 80% — 100% AMI • 1 unit will be at market rate, which is expected to be estimated at - 70% AMI for new units of that size in Overtown, currently. Since there is a variety of income levels and unit sizes within one building it can allow the tenants to enjoy an increase to their incomes and potentially remain in the building. EXHIBIT A Proof of Ownership - 1433 NW 1st Ct. Prepared by and Return to: Peter Ariz, Esquire 2103 Coral Way #800 Miami, FI., 33145 CFN: 20230450115 BOOK 33773 PAGE 3414 DATE:06/29/2023 03:23:49 PM DEED DOC 354.00 SURTAX 265.50 JUAN FERNANDEZ-BARQUIN CLERK OF THE COURT & COMPTROLLER MIAMI-DADE COUNTY, FL (Space Above This Line For Recording Data) Quit Claim Deed This Quit Claim Deed made this Id day of Aprll, 2023, between Evalina W. Bestman, a single woman, whose post office address is 9230 NW 13n Court, Miami, FL., 33147, grantor, and EWB INVESTMENTS, LLC, a Florida limited liability company, whose post office address is 9230 NW 13th Court, Miami, FL., 33147, grantee: (Whenever used herein the terms 'grantor° and `grantee" include all the parties to this instrument and the heirs, legal representatives, and assigns of individuals, and the successors and assigns of corporations, trusts and trustees) Witnesseth, that said grantor, for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable considerations to said grantor in hand paid by said grantee, the receipt whereof is hereby acknowledged, does hereby remise, release, and quitclaim to the said grantee, and grantee's heirs and assigns forever, all the right, title, interest, claim and demand which grantor has in and to the following described land, situate, lying and being in the Miami=Dade County, Florida, to -wit: SOUTH 30 FEET OF LOT 6, BLOCK 43 WADDELL'S ADDITION ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK B, PAGE 53, OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA Parcel Identification Number: 01-3125-048-1740 Aka: 1433 NW 1 COURT, Miami, FI„ 33136 To Have and to Hold, the same together with all and singular the appurtenances thereto belonging or in anywise appertaining, and all the estate, right, title, interest, lien, equity and claim whatsoever of grantors, either in law or equity, for the use, benefit and profit of the said grantee forever. In Witness Whereof, grantor has hereunto set grantor's hand and seal the day and year first above written. The land is not the homestead of the Grantor under the laws and Constitution of the State of Florida and neither the Grantor nor any person(s) for whose support the Grantor is responsible reside on or adjacent to the land. Proof of Ownership - 1435 NW 1st Ct. Prepared by and Retum to: Peter Ariz, Esquire 2103 Coral Way #800 Miami, FI., 33145 CFN: 20230450206 BOOK 33773 PAGE 3808 DATE:06/29/2023 03:40:44 PM DEED DOC 247.20 SURTAX 185.40 JUAN FERNANDEZ-BARQUIN CLERK OF THE COURT & COMPTROLLER MIAMI-DADE COUNTY, FL (Space Above This Line For Recording Data) Quit Claim Deed This Quit Claim Deed made this lb-1.--day of April, 2023, between Evalina W. Bestman, a single woman, whose post office address is 9230 NW 13Th Court, Miami, FL., 33147, grantor, and EWB INVESTMENTS, LLC, a Florida limited liability company, whose post office address is 9230 NW 13'" Court, Miami, FL., 33147, grantee: (Whenever used herein the terms "grantor" and 'grantee" include all the parties to this instrument and the heirs, legal representatives, and assigns of individuals, and the successors and assigns of corporations, trusts and trustees) Witnesseth, that said grantor, for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable considerations to said grantor in hand paid by said grantee, the receipt whereof is hereby acknowledged, does hereby remise, release, and quitclaim to the said grantee, and grantee's heirs and assigns forever, all the right, title, interest, claim and demand which grantor has in and to the following described land, situate, lying and being in the Miami=Dade County, Florida, to -wit North 30 feet of Lot 6, Block 43, WADDELL'S ADDITION, according to the Plat thereof, as recorded in Plat Book B, Page 53, of the Public Records of Miami -Dade County, Florida. Parcel Identification Number: 01-3125-048.1730 Aka: 1435 NW 1 COURT, Miami, FI., 33136 To Have and to Hold, the same together with all and singular the appurtenances thereto belonging or in anywise appertaining, and all the estate, right, title, Interest, lien, equity and claim whatsoever of grantors, either in law or equity, for the use, benefit and profit of the said grantee forever. In Witness Whereof, grantor has hereunto set grantor's hand and seal the day and year first above written. The land is not the homestead of the Grantor under the laws and Constitution of the State of Florida and neither the Grantor nor any person(s) for whose support the Grantor is responsible reside on or adjacent to the land. Pro-Formas and Rents - Multifamily PRO FORMA (20 year) REVENUES YEAR 1 2 3 4 5 e 7 10 11 12 13 14 15 16 17 16 19 20 Gross Residential Rent ..Omer income - Reselen/el Vacancy • Residential income 5 220,224 $ 221,932 $ 235,909 $ 244,166 5 252.712 5 261.557 S 270,712 $ 280.186 5 289.993 S 300.143 $ 310.648 $ 321.520 $ 332.774 $ 344.421 S 356,475 5 368.952 S 381.865 S 395.231 $ 009.084 $ 423.381 ; 55055 3 2/352 ; 11,/95 ; 12208 ; 12836 ; 130/8 $ 13536 ; 14009 ; 14500 ; 15.00/ ; 15532 ; 180/6 ; 16639 ; 1/221 ; 1/624 ; 18448 $ 19093 ; 19 /62 ; 20453 ; 2116.9 $ 165.168 $ 200.580 $ 224.114 8 231.958 $ 200.077 S 248.479 $ 257,176 $ 266,177 S 275.493 $ 285.136 S 295.115 $ 305.444 S 316.135 $ 327.200 $ 338.652 5 350.504 $ 362.772 $ 375.069 $ 388,611 $ 402,212 • Effective Gross Income 5 165,168 $ 200.580 S 224.114 $ 231.958 $ 240.077 $ 248.479 S 257,176 6 266.177 $ 275.493 $ 285.136 $ 295.115 S 305.444 $ 316.135 $ 321,200 $ 338.652 S 350,504 S 362.772 5 375.469 S 388.611 5 402.212 Operating Expenses Management Pees $ 12,000 S 12,720 S 13,483 $ 14,292 S 15.150 $ 16059 S 17,022 $ 18,044 $ 19,126 S 20,274 $ 21,490 $ 22,780 S 24,146 $ 25.595 S 27,131 $ 28.759 S 30,484 $ 32,313 $ 34,252 S 36.307 Nalles and Trask S 8.300 $ 8.798 $ 9,326 $ 9.885 $ 10.479 S 11,107 $ 11,114 $ 12.480 $ 13.229 S 14,023 S 14.864 $ 15.756 $ 16.701 $ 17.703 $ 18,766 $ 19.891 S 21,085 S 22,350 $ 23,691 S 25.112 Maintena00e/Repeh and Grounds $ 18,000 S 19.080 S 20.225 $ 21,438 S 22.725 5 24,088 8 25,533 5 27.065 5 28.689 $ 30.411 5 32.235 S 34.169 $ 36,220 5 38,393 $ 40.896 $ 43,138 8 45.728 5 48.470 5 51,378 8 54.061 Reel Estate Properly Tax $ 50,000 S 53,000 S 56.180 5 59.551 S 63.124 $ 88,911 S 70,928 $ 15.182 5 79,692 5 84,474 5 89.542 S 94,915 $ 100.610 5 108.848 $ 113,045 $ 119,828 8 127.018 $ 134.639 5 142,717 $ 151.280 Insurance $ 16,000 S 16,960 S 17,978 $ 19,056 $ 20.200 $ 21,412 $ 22.696 $ 24.058 $ 25.502 0 27.032 S 28,654 S 30.373 S 32,195 $ 34.127 $ 36,174 $ 38,345 S 40.646 $ 43,084 S 45,669 $ 48.410 • - Total Operating Expenses $ 104.300 $ 110,558 $ 117.191 $ 124,223 $ 131.676 $ 139.577 S 147,952 S 156.829 5 166.238 $ 176.213 S 186.785 $ 191,993 S 209,872 5 222.064 $ 235,812 $ 249.961 S 264.959 5 280.856 $ 297,708 $ 315,570 -Transfer to Reserves $ 7.000 $ 1,210 $ 1,426 5 7,649 S 7.879 $ 8.115 S 8.358 S 8.609 $ 8,867 5 9.133 $ 9,407 $ 9.690 $ 9,980 S 10,280 $ 10,588 8 10.906 S 11.233 5 11.570 5 11.917 $ 12.275 -Other Fxoensefl • Net Operating Income 0 53.868 S 82,812 $ 99,496 $ 100,086 S 100.522 $ 100,787 S 100,866 S 100.739 $ 100.388 S 99,790 S 98,922 S 97,162 $ 96,282 S 94.455 S 92,251 $ 89,638 S 86,580 $ 83,043 S 78,986 $ 74.367 -Dent Service (psi) bank $ 24,296 $ 24.296 $ 24,296 $ 24,296 $ 24,296 $ 24,296 $ 24.296 $ 24.296 $ 24,296 6 24,296 $ 24.298 $ 24,296 S 24.296 S 24,296 $ 24,296 $ 24.296 $ 24.296 S 24,296 $ 24,296 $ 24,296 • Cash Flow AvallaW. $ 29,572 5 58,516 S 75,200 S 75,790 S 76.225 S 76.491 S 76,570 $ 76.443 S 76.091 S 75.493 $ 74,626 5 73.466 S 71,988 $ 70,159 S 61,955 $ 65,341 S 62,284 S 58,747 S 54,890 S 50.071 Pro-Formas and Rents - Multifamily Unit Type # Units Monthly Per Unit Rent Total Annual Rent Unit_AMI Ground Floor 1-I 1 638 $ 7,656 30% 30% 60% 60% 80% 100% 80% Market-Overtown 2nd Floor 1-BR 1 638 $ 7,656 2nd Floor 1-BR 1 1,277 $ 15,324 3rd Floor 1-BR 2 1,277 $ 30,648 2nd Floor 2-BR 2 2,042 $ 49,008 3rd Floor 2-BR 2 2100* $ 50,400 2nd Floor 3-BR 1 2,361 $ 28,332 3rd Floor3-BR 1 2,600 $ 31,200 TOTAL 11 $ 18,352 $ 220,224 *less than allowed based on market rate to comply with 3.15.6 to comply with 3.15.6 to comply with 3.15.2.a to comply with 3.15.2.a to comply with 3.15.2.a to comply with 3.15.2.a 100% to comply with 3.15.2.a to comply with 3.15.2.a