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HomeMy WebLinkAboutCRA-R-25-0030 Exhibit A 2024-02-08Damian Pardo Board Chair I Omni C R A INTER -OFFICE MEMORANDUM Isiaa Jones Interim Executive Director TO: Board Chairman Damian Pardo and DATE: February 8, 2024 Members of the CRA Board FROM: Isiaa Jones Interim Executive Director SUBJECT: 4/5ths Bid Waiver authorizing the Approval of the additional Funding Request for the "Uni-Tower" Project (Affordable Housing) BACKGROUND The Omni Redevelopment District Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the CRA Redevelopment Plan ("Plan"). On September 13, 2016, the CRA approved and adopted Resolution No. CRA-R-16-0042, adopting the City of Miami's procurement ordinance as the process in which any and all services and goods are procured by the CRA. The NR Investments 11, LLC company (NR Investments) submitted a grant proposal request to the CRA requesting the amount of $5,500,000.00 to underwrite a portion of the costs to develop a mixed -use project within the Omni CRA. NR Investments, a for profit entity, possesses a unique approach to this mixed -use development project consisting of ground floor office retail, ground floor commercial space and approximately 252 units of affordable housing at 70 NE 17th Street, 90 NE 17th Street, and 1642 NE 1st Avenue, Miami, Florida within the CRA's boundaries, known as the "Uni-Tower" project (the "Project"); and The principals of NR Investments have a history of successful development housing units in Miami- Dade County. On April 9, 2020, by a 4/5ths vote, in conformance with the City of Miami's procurement ordinance, the Omni Redevelopment District Community Redevelopment Agency ("CRA") as part of its efforts to beautify the OMNI Community Redevelopment District approved OMNI CRA Resolution CRA-R-20-0001 (the "Resolution"), which authorized the allocation of grant funds in an amount not to exceed $5,500,000.00 for the mixed -use project. Pursuant to the Resolution, the Executive Director was authorized to negotiate and execute any and all necessary documents, all in a form acceptable to the General Counsel. Consistent with the Resolution, the Executive Director, on May 21, 2020, executed the Economic Incentive Agreement for Mixed -Use and Mixed -Income Project for Uni-Tower (the "Agreement"), and agreed to grant to N.R. Investments 11, LLC (the "Developer") grant funds in an amount not to exceed $5,500,000.00; subject to terms and conditions contained in the Agreement. On October 13, 2022, the CRA approved and adopted Resolution No. CRA-R-22-0042, authorizing the executive director to execute a first amendment to the economic incentive agreement for (the "Project") and provide for additional grant funding in the amount of Five Million and 00/100 Dollars ($5,000,000.00). Due to circumstances beyond either the CRA's or the Developer's control, and as a result of the dramatic increase in housing and more so the costs of construction (labor, materials, and supplies), the Developer has been unable to fully fund the construction costs of the Project and has requested that the CRA provide an additional Five Million and 00/100 Dollars ($5,000.000.00) in grant funding for the Project. With the additional grant funding request of an additional $5,000,000.00, the total grant amounts to $15,500,000.00. RECOMMENDATION In light of the above -mentioned background information, the Grantee's past business successes and the CRA's identified objectives in the CRA's plan to reduce slum and blight, and in consideration of the Executive Director's pledge to allocate grant funding to further the Plan and activate the area, the approval of a bid waiver is recommended to provide the additional grant funding.