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HomeMy WebLinkAbout18357 ResolutionSoutheast Overtown/Park West Community Redevelopment Agency Legislation CRA Resolution: 819 NW 2d Ave 3rd Floor Miami, FL 33136 www.seopwcra.com File Number: 18357 Final Action Date:10/23/2025 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENT(S), AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE A DEVELOPMENT ECONOMIC INCENTIVE AGREEMENT ("AGREEMENT"), IN SUBSTANTIALLY THE FORM ATTACHED AS EXHIBIT "A," BY AND BETWEEN THE SEOPW CRA AND BLOCK 45, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), FOR THE DEVELOPMENT OF BLOCK 45, LOCATED AT 152 NORTHWEST 8TH STREET, MIAMI, FLORIDA 33136 (FOLIO NO. 01-0104-050-1010) ("PROPERTY"), INTO A MIXED -USE, MIXED -INCOME TRANSIT ORIENTED DEVELOPMENT PROJECT, AND AUTHORIZING THE ALLOCATION AND APPROPRIATION OF A PORTION OF THE PROCEEDS FROM THE SERIES 2025 BOND ISSUANCE, IN AN AMOUNT NOT TO EXCEED TEN MILLION DOLLARS AND ZERO CENTS ($10,000,000.00) ("FUNDS"), FOR PROJECT COSTS ("PURPOSE"); FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO ALLOCATE THE FUNDS FROM ACCOUNT NO. 300000.920101.883000.0000.00000 — "SEOPW CAPITAL PROJECTS GRANT AND AIDS" FOR THE PURPOSE STATED HEREIN, SUBJECT TO ALL FEDERAL, STATE AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS FOR SAID PURPOSE; DIRECTING THE EXECUTIVE DIRECTOR TO PRESENT ANY AMENDMENTS TO THE AGREEMENT TO THE BOARD FOR ITS CONSIDERATION AND, IF SATISFACTORY, APPROVAL; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY, ALL IN FORMS ACCEPTABLE TO COUNSEL, INCLUDING, BUT NOT LIMITED TO, A RESTRICTIVE COVENANT TO BE RECORDED IN THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA, FOR SAID PURPOSE; PROVIDING FOR THE INCORPORATION OF RECITALS AND AN EFFECTIVE DATE. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") is a community redevelopment agency created pursuant to Chapter 163, Florida Statutes, and is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area in accordance with the 2018 Updated Southeast Overtown/Park West Community Redevelopment Plan (the "Plan"); and WHEREAS, pursuant to Section 163.340(9) Florida Statutes, "community redevelopment means projects of a ... community redevelopment agency in a community redevelopment area for the elimination and prevention of the development or spread of slum and blight"; and WHEREAS, affordable housing, and the lack thereof, is a significant issue in the City of Miami and within the Redevelopment Area, specifically; and City of Miami Page 1 of 4 File ID: 18357 (Revision:) Printed On: 11/10/2025 File ID: 18357 Enactment Number: WHEREAS, Section 2, Goal 2, of the Plan, upholds "expand[ing] the tax base using public - private principles" and "creat[ing] viable commercial corridors ... through Public -Private Partnerships," as a stated redevelopment goal; and WHEREAS, Section 2, Goal 3, of the Plan, emphasizes "working with the [public] and the private sector to encourage and create a sound balance of ... affordable ... housing within the [SEOPW] CRA," as a stated redevelopment goal; and WHEREAS, Section 2, Goal 6, of the Plan, supports "improv[ing] the quality of life [and] creating housing ...," as a stated redevelopment goal; and WHEREAS, Section 2, Principle 2, of the Plan, proposes that the "neighborhood ... retain access to affordable housing," as a stated redevelopment principle; and WHEREAS, Section 2, Principle 3, of the Plan, discusses that there "must be variety in [affordable] housing options," as a stated redevelopment principle; and WHEREAS, the Block 45 (Atlantic Square) development project is a large-scale, mixed -use development, which is anticipated to include a retail center, containing approximately 24,000 net square feet of commercial/retail space on the Property and approximately 616 residential units (the "Project"); and WHEREAS, Block 45, LLC, a Florida Limited Liability Company (the "Developer") anticipates that the Project will create substantial job opportunities within the Redevelopment Area; and WHEREAS, Atlantic Pacific Communities, LLC, a Foreign Limited Liability Company, authorized to do business in the State of Florida, and Miami -Dade County, Florida, a political subdivision of the State of Florida (the "County"), are parties to the Project at 152 Northwest 8th Street, Miami, Florida, 33136 (Folio No. 01-0104-050-1010), as well as Lease Agreement No. RFP-00700, dated July 15, 2019 (the "County Lease"), with respect to that certain real property (the "Property"); and WHEREAS, Atlantic Pacific Communities, LLC, assigned all of its right, title and interest in the County Lease, with respect to the Property, to Developer; and WHEREAS, in accordance with the terms and provisions of the County Lease, Developer commenced construction on the Project, in accordance with the Construction Plans, as defined in the County Lease; and WHEREAS, the SEOPW CRA and Developer are negotiating a development economic incentive agreement; and WHEREAS, terms have been negotiated, as more particularly described in the proposed Development Economic Incentive Agreement ("Agreement"), in substantially the form attached as Exhibit "A"; WHEREAS, the SEOPW CRA has agreed to provide certain economic incentives to Developer in exchange for Developer's agreement to (i) set aside forty (40) affordable housing units and (ii) lease to the SEOPW CRA approximately 4,000 square feet of the commercial/retail space at the Project, subject to the terms and conditions of the Agreement; and City of Miami Page 2 of 4 File ID: 18357 (Revision:) Printed on: 11/10/2025 File ID: 18357 Enactment Number: WHEREAS, the Agreement provides for the SEOPW CRA's incentive payment to the Developer equal to (i) seventy-five percent (75%) of the tax increment revenues (excluding the land value) generated from the Project actually received by the SEOPW CRA from the City of Miami ("City") and County and (ii) the City's Section 5(e) Payment ("Section 5(e) Payment"), as defined in Section 5.2 of the Agreement, in substantially the form attached as Exhibit "A," to be used for affordable housing and related capital improvements, with Developer being required, pursuant to City Resolution R-24-0109, to utilize the funds for that twelve (12) of the forty (40) units (i.e. Low Affordable Units) to be made available solely for individuals and/or families (i.e. Low -Income Tenants) earning up to sixty percent (60%) Area Median Income, as published annually by the United States Department of Housing and Urban Development ("AMI"), within the Redevelopment Area, throughout the term of the Agreement (set to expire at the earlier of March 31, 2042 or the sunset of the SEOPW CRA); and WHEREAS, the Agreement further provides for the annual payment to the Developer of Seven Hundred Fifty Thousand Dollars and Zero Cents ($750,000.00) (set to expire at the earlier of March 31, 2042) ("Housing Subsidy"), for an affordable housing rent subsidy applied to the twenty-eight (28) of the forty (40) units (i.e. Middle Low Affordable Units), first occupied by individuals or families earning up to 80% of AMI; and WHEREAS, the Agreement further provides for a grant to Developer for project construction costs, in an amount not to exceed Ten Million Dollars and Zero Cents ($10,000,000.00), to be funded by a portion of the proceeds from the issuance of the 2025 Series Bonds' as consideration for setting aside a number of affordable residential units; and WHEREAS, a Restrictive Covenant, shall be recorded on the Property, and any other land transferred in furtherance of the project stated, in the event Developer fails to be in compliance with the Agreement, and as described herein; and WHEREAS, the Board of Commissioners wishes to authorize the execution of the Agreement, in substantially the form attached as Exhibit "A," with the Developer, for the purpose of funding affordable housing, and related capital improvements and costs ("Purpose"); and WHEREAS, the Board wishes to authorize the allocation and appropriation of a portion of the 2025 Series Bond proceeds, in an amount not to exceed $10,000,000.00, for said Purpose; and WHEREAS, the Board finds that authorizing this Resolution would further the SEOPW CRA's redevelopment goals and objectives; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. The Board hereby approves and authorizes the acceptance of negotiations for the redevelopment of the Property for the Purpose stated herein. Section 3. The Board hereby authorizes the Executive Director to execute the Agreement, in substantially the form attached as Exhibit "A," between the SEOPW CRA and Developer, for the Purpose stated herein. ' On April 10, 2025, the Board, through CRA-R-25-0014, and the City of Miami, through R-25-0135 approved the issuance of the SEOPW CRA's Tax Increment Revenue Bonds, Series 2025. City of Miami Page 3 of 4 File ID: 18357 (Revision:) Printed on: 11/10/2025 File ID: 18357 Enactment Number: Section 4. The Board hereby further authorizes the Executive Director to allocate and appropriate a portion of proceeds from the Series 2025 Bond Issuance as a grant, in an amount not to exceed $10,000,000.00, from Account No. 300000.920101.883000.0000.00000 — "SEOPW Capital Projects Grant and Aids," to Developer to assist with project costs, for said Purpose. Section 5. The Executive Director is hereby authorized2 to negotiate and execute any agreements, including any and all documents necessary, all in forms acceptable to Counsel, including, but not limited to, a Restrictive Covenant to be recorded in the public records of the County, for said Purpose. Section 6. The Executive Director is hereby further authorized to negotiate amendments and clarifications to the Agreement with Developer, and is directed to present any amendments or clarification to the SEOPW CRA Board for its consideration, and, if satisfactory, approval. Section 7. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the Executive Director, or the Executive Director's designee, without need of public hearing, by filing a corrected copy of the same with the City Clerk. Section 8. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Ice Br ounsel 10/16/2025 2 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to those prescribed by applicable State law, City Charter and City Code provisions, as adopted by the SEOPW CRA. City of Miami Page 4 of 4 File ID: 18357 (Revision:) Printed on: 11/10/2025