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Home My WebLink AboutCRA-R-25-0030 MemorandumOMNI Board of Commissioners Meeting June 26, 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 26, 2025 File: 15521 Subject: 4/5ths Grant for Uni-Tower Project Enclosures: 15521 Exhibit A 15521 Uni-Tower Progress Update 15521 Uni-Tower CRA Breakdown 15521 Letters of Support 15521 Rent Loss 2048-2055 15521 Notice to the Public 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 by which any and all services and goods are procured by the CRA. UNI 17th Street, LLC ("UNI"), the parent company and sole member of NR Investments 11, LLC ("NR 11"), submitted a grant proposal request to the CRA requesting $5,000,000.00. This funding is needed to underwrite a portion of the costs for the mixed -use project known as "Uni- Tower" (the "Project"), located within the Omni CRA boundaries at 70 NE 17th Street, 90 NE 17th Street, and 1642 NE 1st Avenue, Miami, Florida. The Project consists of ground floor office and retail space, and approximately 252 units of affordable housing. NR Investments, a for -profit entity, has a history of successful housing development in Miami -Dade County. UNI assumed all rights, interests, and obligations of NR 11 under the original Economic Incentive Agreement in April 2021. Due to circumstances beyond the CRA's or the Developer's control, including a dramatic increase in construction costs (labor, materials, and supplies), the Developer has been unable to fully fund the Project and has requested that the CRA provide an additional $5,000,000.00 in grant funding. JUSTIFICATION: The initial grant funding for the Project was approved under OMNI CRA Resolution CRA-R-20- 0001. This aligns with the Plan's objective of incentivizing diverse housing options, including affordable and workforce housing. The Plan also aims to attract downtown workers and enhance the area's visual appeal to businesses and residents through varied housing options. The Uni-Tower Project contributes to the CRA's goals of eliminating slum and blight by offering housing options within the CRA. The Project has incurred unavoidable cost increases due to high inflation, impacting concrete costs and delivery, along with other unforeseen issues and design changes required for HUD compliance and City Code adherence. Additional expenditures were made to enhance the residential experience, including high -end amenity spaces, a distinctive lobby, high -quality unit appliances, and other features. Due to rent restrictions, these additional costs cannot be recouped through increased rent, necessitating further economic support from the Omni CRA. The requested $5,000,000 will support units restricted at 60%, 80%, and 100% AMI, representing 30% of the Project. The request for the additional grant funding is consistent with the original Resolution approved on April 9, 2020, and with the Plan, and approval of the funding request is recommended. City of Miami Page 2 of 6 File ID: 15521 (Revision: C) Printed On: 9/16/2025 FUNDING: The additional grant funding will be a total amount not to exceed amount of $5,000,000.00 allocated from "Grant and Aids" Account No. 10040.920501.883000.0000.00000. City of Miami Page 3 of 6 File ID: 15521 (Revision: C) Printed On: 9/16/2025 Omni C R A City of Miami Legislation OMNI CRA Resolution CRA-R-25-0030 OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 15521 Final Action Date:6/26/2025 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 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; WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CRA; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN AMENDMENT TO THE ECONOMIC INCENTIVE AGREEMENT DATED MAY 21, 2020 ("AGREEMENT") IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, FOR THE MIXED -USE AND MIXED -INCOME PROJECT KNOWN AS "UNI-TOWER" ("PROJECT") FOR THE DEVELOPMENT OF PROPERTY LOCATED WITHIN A UNITED STATES SMALL BUSINESS ADMINISTRATION DESIGNATED HUBZONE AT 70 NORTH EAST 17TH STREET, 90 NORTH EAST 17TH STREET, AND 1642 NORTH EAST 1ST AVENUE, MIAMI, FLORIDA; FURTHER AMENDING THE AFFORDABILITY PERIOD OF THE PROJECT TO 2055; AUTHORIZING THE ALLOCATION OF GRANT FUNDS IN AN ADDITIONAL AMOUNT NOT TO EXCEED FIVE MILLION AND 00/100 DOLLARS ($5,000,000.00), SUBJECT TO THE AVAILABILITY OF FUNDS; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN AMENDED RESTRICTIVE COVENANT AGREEMENT, AND ANY AND ALL OTHER NECESSARY DOCUMENTS, ALL IN FORMS ACCEPTABLE TO THE GENERAL COUNSEL FOR THE PURPOSE STATED HEREIN AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 9, 2020, the Omni Redevelopment District Community Redevelopment Agency ("CRA") as part of its efforts to beautify and provide affordable housing adopted CRA Resolution No. CRA-R-20-0001 (the "Resolution"), which authorized the allocation of grant funds in an amount not to exceed Five Million Five Hundred Thousand and 00/100 Dollars ($5,500,000.00) for the mixed -use project consisting of ground floor retail, office space, and approximately Two Hundred Fifty -Two (252) affordable housing units at 70 North East 17th Street, 90 North East 17th Street, and 1642 North East 1st Avenue, Miami, Florida within the CRA's boundaries, known as the "Uni-Tower" project (the "Project"); and WHEREAS, pursuant to the Resolution, the Executive Director, on May 21, 2020, executed an Economic Incentive Agreement for Mixed -Use and Mixed -Income units for the Project (the "Agreement"), and agreed to grant to NR Investments 11, LLC (the "Developer"), City of Miami Page 4 of 6 File ID: 15521 (Revision: C) Printed On: 9/16/2025 grant funds in an amount not to exceed Five Million Five Hundred Thousand and 00/100 Dollars ($5,500,000.00), subject to terms and conditions contained in the Agreement; and WHEREAS, pursuant to CRA Resolution No. CRA-R-22-0042, the CRA approved additional grant funding to the Project; and WHEREAS, the Project, located within a United States Small Business Administration - designated HubZone, uniquely combines Two Hundred Fifty -Two (252) affordable and workforce housing units with commercial and office space, fostering sustainable economic growth by enabling small businesses to qualify for HubZone benefits such as set -aside contracts, price preferences, and subcontracting opportunities, while creating jobs, encouraging business relocation, and generating revenue within the CRA and the City of Miami; and WHEREAS, due to the continued circumstances beyond either the CRA's or the Developer's control, and as a result of the dramatic increase in housing costs, 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; and WHEREAS, the CRA and the Developer has agreed to extend the rent restrictions for the Project through the year 2055, beyond the current term of 2047, thereby extending the affordability period to a total of 30 years; and WHEREAS, the Developer shall retain the option to repay up to Five Million and 00/100 Dollars ($5,000,000.00) on a prorated basis between 2047 and 2055 in order to remove the rent restrictions during that period; and WHEREAS, the CRA and the Developer desire to further amend the Agreement in order to provide for the additional Five Million and 00/100 Dollars ($5,000,000.00) in grant funding, for a total amount of grant funding not to exceed Fifteen Million Five Hundred Thousand and 00/100 Dollars ($15,500,000.00) for the development of the Project; and WHEREAS, the CRA Board finds that the approval of this Resolution is consistent with the requirements of Chapter 163, Part III, Florida Statutes, the provisions of the CRA's Redevelopment Plan and is in the best interest of the residents and businesses within the CRA's boundaries, and serves a municipal and public purpose; 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, the allocation of additional grant funds for the Project will be disbursed as Two Milliion Five Hundred Thousand ($2,500,000.00) in Fiscal Year 2024 - 2025 and Two Milliion Five Hundred Thousand ($2,500,000.00) in Fiscal Year 2025 - 2026 in a total amount not to exceed Five Million and 00/100 Dollars ($5,000,000.00); NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if 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 City of Miami Page 5 of 6 File ID: 15521 (Revision: C) Printed On: 9/16/2025 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, having been found as not being practicable or advantageous to the CRA, are waived. Section 3. The Executive Director is authorized to negotiate and execute an Amendment to the Economic Incentive Agreement, the Restrictive Covenant Agreement, and any and all other necessary documents, all in forms acceptable to the General Counsel, for the Project Section 4. The Executive Director is hereby authorized to allocate additional grant funds in an amount not to exceed Five Million and 00/100 Dollars ($5,000,000.00) for a total amount not to exceed Fifteen Million Five Hundred Thousand and 00/100 Dollars ($15,500,000.00) for the Project, subject to the availability of funds, to be disbursed in the form of two payments to the Developer from account code 10040.920501.883000.0000.00000. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 2644 ORGE . WYSON III, LIENERAL COUNSEL City of Miami Page 6 of 6 File ID: 15521 (Revision: C) Printed On: 9/16/2025