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HomeMy WebLinkAboutExhibit BCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Arthur Noriega V DATE: June 2, 2025 City Manager SUBJECT: District 5 - Yaeger Plaza Partners, LLC. — Ground Lease 24 , Victor Tu signed by: Director G�. 6,6 E31A2DEEBAE4F43F... BACKGROUND On March 28, 2022, the Developer submitted to the City a Letter of Request for the development of an affordable rental housing project ("Project") located at 1166 Northwest 62 Street, Miami, Florida, ("Parcel"), to Yaeger Plaza Partners, LLC. ("Developer"). Due to the shortage of affordable housing in the City of Miami in the last few years, the City Commission approved R-23-0300 on July 13, 2023 authorizing the conveyance of the City -owned parcel at 1166 NW 62 ST for use as the development site of the Yaeger Plaza Project. Due to the senior lender behind the affordable project not being able to lend financing with the City's reverter provision in place, the Developer is now seeking a 99-year ground lease structure on 1166 NW 62 ST instead. The Yaeger Plaza project will be the new construction of a multifamily building consisting of a total of (135) units located at 1166 NW 62 Street. Approximately (21) units will be studios; (86) units will be one - bedrooms; and (28) units will be two -bedrooms targeting households ranging from 22% to 80% AMI. The Project previously received HCLC approval to draw on $3M of Miami Forever General Obligation Bond Funding "GOB" funds on September 26, 2023. Integral Florida is the Florida Division of the Integral Group LLC which is a privately held urban real estate development and investment management company. Founded in 1993, Integral has distinguished itself by compiling a track record of achievements in implementing residential, retail, office, institutional and transformed mixed -use projects in urban markets. Mr. Kareem Brantley oversees the Miami office of Integral Florida. Yaeger Plaza Partners, LLC is the special purpose, financing vehicle set up by Integral Florida for the project's development. As the Developer is familiar with the needs of the community, and is exclusively partnering with Mount Calvary Baptist Church of Miami Inc, the Yaeger Foundation and Alfred Thomas, Integral Florida is uniquely qualified to develop and manage this affordable rental project for 99-years. Transferring site control to the Developer via a ground lease will allow the Developer to close on the Project financing this summer which would not happen with the City's procurement process, which could take over 30-40 days. RECOMMENDATION In light of the above, approval of a waiver of the formal requirements of competitive sealed bidding methods as not being practicable or advantageous to the City as set forth in the City Code of Ordinances, as amended, specifically Section 18-85 (A), and the affirmation of these written findings and the forwarding of the same to the City Commission for ratification by a fourth -fifths vote is respectfully requested. Ds ro) WPROVED / DISAPPROVED iGacuSigned by: Qv#uv ivOrit,pr. 850CFSC372DD42A... — Arthur Noriega V City Manager