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Home My WebLink AboutCRA-R-25-0055 MemorandumOMNI Board of Commissioners Meeting September 25, 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: September 17, 2025 File: 18194 Subject: 14th Street Development, LLC - Additional Funding Enclosures: 18194 Exhibit A 18194 Backup 18194 Notice to the Public BACKGROUND: The Omni Redevelopment District Community Redevelopment Agency (CRA) is responsible for implementing redevelopment initiatives within its designated boundaries, as outlined in the CRA Redevelopment Plan ("Plan"). On September 13, 2016, the CRA adopted the City of Miami's procurement ordinance to guide the acquisition of goods and services. 14th Street Development LLC, a subsidiary of NR Investments, Inc., has submitted a grant proposal requesting Twelve Million and 00/100 Dollars ($12,000,000.00) to support a mixed -use project within the CRA boundaries. The development, known as the "14th Street Development," will consist of a 31-story building with approximately 398 residential units. The Developer and CRA propose to fully restrict these units across a range of income levels for 27 years after Temporary Certificate of Occupancy (TCO) or Certificate of Occupancy (CO) (60% to 140% of the Area Median Income, as published annually by the United States Department of Housing and Urban Development), replicating the successful model of the UNI Tower project. This initiative aligns with the CRA's goals of providing diverse, high -quality, and centrally located affordable housing options, promoting community stability, and supporting economic vitality within the district. JUSTIFICATION: The CRA previously approved funding for the Project under CRA Resolution No. CRA-R-21- 0044, consistent with the Plan's objectives to incentivize diverse housing, attract downtown workers, and eliminate slum and blight through strategic redevelopment. Since the original resolution, the Project has experienced significant increases in overall costs due to inflation, labor and material expenses, and financing conditions. The additional grant funding will ensure the Project remains financially viable while meeting the CRA's commitment to deliver high -quality, affordable, and workforce housing opportunities. This request is consistent with the CRA's redevelopment goals. RECOMMENDATION: The Executive Director seeks authorization to negotiate and execute amendments to the Economic Incentive Agreement, Forgivable Project Loan Agreement, Rent Regulatory Agreement, and all supporting documents, in a form acceptable to the General Counsel, to allocate the additional funding. FUNDING: The additional funding shall be in an amount not to exceed Twelve Million and 00/100 Dollars ($12,000,000.00), contingent upon the issuance of the CRA's Tax Increment Revenue Bonds, Series 2026. City of Miami Page 2 of 5 File ID: 18194 (Revision:) Printed On: 10/7/2025 i Omni CRA City of Miami Legislation OMNI CRA Resolution CRA-R-25-0055 OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 18194 Final Action Date:9/25/2025 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 HEREIN 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, 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 AMENDMENTS TO THE ECONOMIC INCENTIVE AGREEMENT, FORGIVABLE PROJECT LOAN AGREEMENT, RENT REGULATORY AGREEMENT AND SUPPORTING DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, TO ALLOCATE ADDITIONAL FUNDING IN THE AMOUNT NOT TO EXCEED TWELVE MILLION AND 00/100 DOLLARS ($12,000,000.00), CONTINGENT UPON THE ISSUANCE OF THE CRA'S TAX INCREMENT REVENUE BONDS, SERIES 2026, FOR THE MIXED -USE AND MIXED -INCOME PROJECT LOCATED AT 1441, 1445, AND 1455 NORTH MIAMI AVENUE, 25 AND 31 NORTHEAST 14TH STREET, AND 1412, 1418, 1428, AND 1432 NORTHEAST MIAMI COURT, MIAMI, FLORIDA WITHIN THE CRA'S REDEVELOPMENT AREA TO 14TH STREET DEVELOPMENT, LLC, FURTHER EXTENDING THE AFFORDABILITY PERIOD OF THE PROJECT TO TWENTY-SEVEN (27) YEARS, COMMENCING AT THE ISSUANCE OF THE TEMPORARY CERTIFICATE OF OCCUPANCY ("TCO") OR CERTIFICATE OF OCCUPANCY, WHICHEVER IS EARLIER; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL OTHER NECESSARY DOCUMENTS, INCLUDING ANY AMENDMENTS AND MODIFICATIONS TO SAID AGREEMENTS, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL TO EFFECTUATE SAID AMENDMENTS AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on October 28, 2021, the Omni Redevelopment District Community Redevelopment Agency ("CRA") as part of its efforts to beautify the OMNI Community Redevelopment District adopted CRA Resolution No. CRA-R-21-0044 (the "Resolution"), which authorized the allocation of funds in an amount not to exceed Fifteen Million and 00/100 Dollars ($15,000,000.00) for a mixed -use project consisting of ground floor retail and approximately 398 housing units, of which 120 would be affordable units, at 1441, 1445, and 1455 North Miami Avenue, 25 and 31 Northeast 14th Street, and 1412, 1418, 1428, and 1432 Northeast Miami Court, Miami, Florida within the CRA's boundaries, known as the "14th Street Development" project ("Project"); and City of Miami Page 3 of 5 File ID: 18194 (Revision:) Printed On: 10/7/2025 WHEREAS, on March 28, 2022, pursuant to the Resolution, the Forgivable Project Loan Agreement, Rent Regulatory Agreement, Economic Incentive Agreement and supporting documents ("Agreements") for the Project was executed; and WHEREAS, the CRA and 14th Street Development, LLC ("Developer") desire to increase the amount of income -restricted housing units within the Project; specifically, the CRA and the Developer desire to restrict 5% of the Project's housing units up to 60% of the of Area Median Income as published annually by the United States Department of Housing and Urban Development ("AMI"), 10% of the Project's housing units up to 80% AMI, 15% of the Project's housing units up to 100% AMI, 20% of the Project's housing units up to 120% AMI, and 50% of the Project's housing units up to 140% AMI, therefore fully restricting the entire housing component of the Project which comprises approximately 398 housing units; and WHEREAS, the Developer, through an affiliated entity, and with the assistance of the CRA, has also developed the "UNI Tower" project, which includes 252 fully income -restricted housing units at 60%, 80%, 100%, 120%, and 140% AMI, respectively, within the boundaries of the CRA; and WHEREAS, the affordability period for the Project is extended to a total of twenty-seven (27) years, commencing at the issuance of the Temporary Certificate of Occupancy ("TCO") or Certificate of Occupancy, whichever is earlier; and WHEREAS, the Project, along with the "UNI Tower" project, will therefore result in a total of approximately 650 new fully income -restricted housing units within the boundaries of the CRA, including studios, 1-bedroom units, and 2-bedroom units; and WHEREAS, in order to compensate for a portion of the higher rent losses that will result from having more income -restricted housing units in the fully restricted Project, and to face the dramatic increase in the costs of construction (labor, materials, supplies, etc.) and interest rates that have taken place since the Agreement was executed, the Developer has requested that the CRA provide an additional Twelve Million and 00/100 Dollars ($12,000,000.00) for a total loan amount not to exceed Twenty Seven Million and 00/100 Dollars ($27,000,000.00) in funding for the Project; and WHEREAS, all other terms and conditions of the Agreements shall remain unchanged; and WHEREAS, page 4-23 of the CRA's 2019 Redevelopment Plan ("Plan") reaffirms the importance of the development of affordable housing to the economic vitality of the CRA and identifies among its community benefits priority for the "inclusion of an appropriate among of below -market rate units", specifically workforce housing units (at less than 140% AMI) and units for low-income residents (less than 80% AMI); and WHEREAS, the CRA and the Developer desire to amend the Agreement in order to provide for the additional funds 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 Plan, is in the best interests 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 City of Miami Page 4 of 5 File ID: 18194 (Revision:) Printed On: 10/7/2025 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, for the additional allocation of funds in an amount not to exceed Twelve Million and 00/100 Dollars ($12,000,000.00) to be disbursed, contingent upon the issuance of the CRA's Tax Increment Revenue Bonds, Series 2026 to the Developer for the Project; 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, 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 to the CRA pursuant to Sections 18-85 and 18-86 of the City Code, as adopted by the CRA. are hereby ratified, approved, and confirmed and the requirements for competitive sealed bidding methods 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, Forgivable Project Loan Agreement, Rent Regulatory Agreement, and all supporting documents in a form acceptable to the General Counsel for the Project. Section 4. Funding in the additional amount not to exceed Twelve Million and 00/100 Dollars ($12,000,000.00) for the Project to provide the unit mix restrictions of 5% of the Project's housing units up to 60% AMI, 10% of the Project's housing units up to 80% AMI, 15% of the Project's housing units up to 100% AMI, 20% of the Project's housing units up to 120% AMI, and 50% of the Project's housing units up to 140% AMI, therefore fully restricting the entire housing component of the Project which comprises approximately 398 housing units, contingent upon the issuance of the CRA's Tax Increment Revenue Bonds, Series 2026, is hereby approved. Section 5. The Executive Director is further authorized to negotiate and execute any and all necessary documents, including any amendments and modifications to said Agreements, all in forms acceptable to the General Counsel, as may be necessary to effectuate the intent of this Resolution. Section 6. The period of affordability to the Project is hereby extended to total of twenty- seven (27) years, commencing at the issuance of the Temporary Certificate of Occupancy ("TCO") or Certificate of Occupancy, whichever is earlier. Section 7. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: ORGE . WYSON 7 III. ENERAL COUNSEL City of Miami Page 5 of 5 File ID: 18194 (Revision:) Printed On: 10/7/2025