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HomeMy WebLinkAboutCRA-R-25-0073 MemorandumSEOPW Board of Commissioners Meeting November 20, 2025 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King Date: November 14, 2025 and Members of the CRA Board File: 18532 From: James McQueen Executive Director Subject: Authorize Development Economic Incentive Agreement: Block 45, LLC Enclosures: File # 18532 - Exhibit A _ 4_5ths Notice Block 45_SIGNED File # 18532 - Exhibit B _ Block 45 Development Agreement File # 18532 - Backup_Sunbiz Block 45 File # 18532 - Notice to the Public BACKGROUND: A resolution of the board of commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW 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 section(s) 18-85 and 18-86 of the code of the City of Miami, Florida ("City"), as amended, as adopted by the SEOPW CRA, and waiving said procedures, authorizing the executive director to negotiate and execute a development economic incentive agreement ("Agreement"), in substantially the form attached as Exhibit `B," providing for an incentive payment, pursuant to City resolution R-24-0109, a grant of an amount not to exceed $10,000,000.00 ("Funds") for project costs, and an annual affordable housing operating subsidy of an amount not to exceed $750,000.00 to Block 45, LLC, a Florida limited liability company ("Developer"), for the mixed -use transit -oriented development project at 152 northwest 8th street, Miami, Florida 33136 (folio no. 01-0104-050-1010) ("Property") ("Purpose"). 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 and approximately 616 residential units. The Executive Director entered into negotiations with Developer in order to execute a Development Economic Incentive Agreement ("Agreement"), in substantially the form attached as Exhibit `B," with respect 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"). The Agreement provides for an incentive payment to 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). 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. 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. It is recommended that the Board of the SEOPW CRA approve and adopt the attached Resolution, including the disposition of Property, for the Purpose stated herein. BACKGROUND: Pursuant to Chapter 163, Florida Statutes, the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area ("Redevelopment Area") in accordance with the 2018 Updated Southeast Overtown/Park West Redevelopment Plan (the "Plan"). Section 163.340(9), Florida Statutes, community redevelopment means "undertakings, activities, or projects of a ... community redevelopment agency in a community redevelopment area for the elimination and prevention of the development or spread of slums and blight...." 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. 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. 1 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. Page 2 of 10 Section 2, Goal 6, of the Plan, supports "improv[ing] the quality of life for residents [and] creating housing ...," as a stated redevelopment goal. Section 2, Principle 2, of the Plan, proposes that the "neighborhood ... retain access to affordable housing," as a stated redevelopment principle. Lastly, Section 2, Principle 3, of the Plan, discusses that there "must be variety in housing options," as a stated redevelopment principle. FUNDING: $10,000,000.00 from Account No. 300000.920101.883000.0000.00000 — "SEOPW Capital Projects Grant and Aids" $750,000.00 from Account No. 300000.920101.883000.0000.00000 — "SEOPW Capital Projects Grant and Aids" FACT SHEET: Entity name: Block 45, LLC. Project Address: 152 Northwest 8th Street, Miami, Florida (Folio no. 01-0104-050-1010) Scope of work or services (Summary): Authorize execution of the Development Economic Incentive Agreement for the purpose of affordable housing development. Page 3 of 10 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: November 20, 2025 CRA Section: Brief description of CRA Agenda Item: Authorizing a development incentive agreement for the development of Block 45. Project Number YES, there Account Code: (if applicable): are sufficient funds in Line Item: 30000.920101.883000.0000.00000 Amount: $1 0, 0 0 0, 00 0.0 0 NO (Complete the following source of funds information): Amount budgeted in the line item: $ Balance in the line item: $ Amount needed in the line item: $ Sufficient funds will be transferred from the following line items: ACTION ACCOUNT NUMBER TOTAL Project No./Index/Minot Object From $ To $ From $ To $ Comments: Additionality, the following subsidies are included in the development agreement: 1) an annual housing subsidy in amount not to exceed $750,000.00 2) 75% TIF Incentive 3) 100% of the Clawback Page 4 of 10 Approved by: Approval: Executive Director 11/13/2025 Miguel A Valcntiri, Finance Officer 11/13/2025 Page 5 of 10 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-25-0073 File Number: 18532 Final Action Date:11/20/2025 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW 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 SECTION(S) 18-85 AND 18-86 OF THE CODE OF THE CITY OF MIAMI, FLORIDA ("CITY"), AS AMENDED, AS ADOPTED BY THE SEOPW CRA, AND WAIVING SAID PROCEDURES, AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE A DEVELOPMENT ECONOMIC INCENTIVE AGREEMENT ("AGREEMENT"), IN SUBSTANTIALLY THE FORM ATTACHED AS EXHIBIT "B," PROVIDING FOR AN INCENTIVE PAYMENT, PURSUANT TO CITY RESOLUTION R-24-0109, A GRANT OF AN AMOUNT NOT TO EXCEED $10,000,000.00 ("FUNDS") FOR PROJECT COSTS, AND AN ANNUAL AFFORDABLE HOUSING OPERATING SUBSIDY OF AN AMOUNT NOT TO EXCEED $750,000.00 TO BLOCK 45, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), FOR THE MIXED -USE TRANSIT -ORIENTED DEVELOPMENT PROJECT AT 152 NORTHWEST 8TH STREET, MIAMI, FLORIDA 33136 (FOLIO NO. 01-0104-050-1010) ("PROPERTY") ("PURPOSE"); FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO ALLOCATE THE FUNDS FROM ACCOUNT NO. 300000.920101.883000.0000.00000 — "SEOPW CAPITAL PROJECTS GRANT AND AIDS," SUBJECT TO ALL FEDERAL, STATE AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS FOR SAID PURPOSE; 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, AND DIRECTING THE EXECUTIVE DIRECTOR TO PRESENT ANY AMENDMENTS TO THE BOARD FOR ITS CONSIDERATION AND, IF SATISFACTORY, APPROVAL; 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 Page 6 of 10 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 ("City") and within the Redevelopment Area, specifically; and 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 currently 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 "B"; and Page 7 of 10 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; and WHEREAS, the Agreement, in substantially the form attached as Exhibit `B," 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 and County (the "Incremental TIF Payment"), and (ii) one hundred percent (100%) of the City's Section 5(e) Payment ("Section 5(e) Payment"), as defined in Section 5.2 of Exhibit "B" ("Incentive Payment"); and WHEREAS, in accordance with City Resolution R-24-0109, the Developer has agreed, in exchange for the Section 5(e) Payment, to provide twelve (12) 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"), throughout the term period (set to expire at the earlier of March 31, 2042 or the sunset of the SEOPW CRA); and WHEREAS, in addition, Developer has further agreed, in exchange for the Incremental TIF Payment, to make available (i) twenty-eight (28) units for individuals and/or families (i.e. Middle Low - Income Tenants) earning up to eighty percent (80%) of AMI and (ii) 4,000 square feet of commercial/retail space at the Project, throughout the above defined term period; and WHEREAS, the Agreement, in substantially the form attached as Exhibit `B," further provides for the SEOPW CRA's annual payment to 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"), as defined in Section 5.4 of Exhibit `B," for an affordable housing operating subsidy applied to those twenty-eight (28) of the forty (40) units (i.e., Middle Low Affordable Units) provided, first occupied by individuals and/or families earning up to eighty percent (80%) of AMI; and WHEREAS, the Agreement, in substantially the form attached as Exhibit `B," further provides for a payment 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 its services, setting aside twenty-eight (28) affordable residential units, and for related capital improvements and costs associated with the Project ("Purpose"); and WHEREAS, a Restrictive Covenant, shall be recorded on the Property, and any other land transferred in furtherance of the development project stated, in the event Developer fails to be in compliance with the terms and conditions of the Agreement, in substantially the form attached as Exhibit "B," and as described herein; and WHEREAS, the Board of Commissioners ("Board") wishes to accept the negotiations and authorize the Executive Director to execute the Agreement, in substantially the form attached as Exhibit "B," with the Developer, for the Purpose stated herein; and WHEREAS, the Board further 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 ("Funds"), for said Purpose; and 2 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. Page 8 of 10 WHEREAS, the Board further wishes to authorize the allocation and appropriation of funds, in an amount not to exceed $750,000.00 ("Housing Subsidy"), annually, subject to the terms and conditions of the Agreement, in substantially the form attached as Exhibit `B," and the Restrictive Covenant, to be recorded in the public records of the County, for said Purpose; and WHEREAS, the Board finds that authorizing this Resolution would further the SEOPW CRA's redevelopment goals and objectives; and WHEREAS, based on the recommendation and findings of the Executive Director, attached and incorporated herein as Exhibit "A," it is in the SEOPW CRA's best interest for the Board to authorize, by an affirmative four -fifths (4/5ths) vote, a waiver of competitive sealed bidding procedures, pursuant to Section(s) 18-85 and 18-86 of the Code of the City of Miami, Florida, as amended ("City Code"), as adopted by the SEOPW CRA, the granting of the Funds to Developer for the Purpose stated herein, and the negotiation and execution of any and all agreements necessary, all in forms acceptable to Counsel, for said Purpose; 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. Pursuant to Section(s) 18-85 and 18-86 of the City Code, as adopted by the SEOPW CRA, by a four -fifths (4/5th) affirmative vote, after an advertised public hearing, the Executive Director's recommendation and written findings, attached and incorporated herein as Exhibit "A," that competitive negotiation methods and procedures are not practicable or advantageous to the SEOPW CRA, and waiving the requirements for said procedures, are hereby ratified, approved, and confirmed. Section 3. The Board hereby approves and authorizes the acceptance of negotiations for the redevelopment of the Property for the Purpose stated herein. Section 4. The Executive Director is hereby authorized to execute the Agreement, in substantially the form attached as Exhibit `B," by and between the SEOPW CRA and Developer, for the Purpose stated herein. Section 5. The Executive Director is hereby further authorized3 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 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 fund project costs, for said Purpose. Section 7. The Executive Director is hereby further authorized to allocate and appropriate funds, in an amount not to exceed $750,000.00 ("Housing Subsidy"), from Account No. 10050.92010.883000.0000.00000 — "SEOPW Other Grant and Aids," annually, subject to the terms and 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. Page 9 of 10 conditions of the Agreement, in substantially the form attached as Exhibit `B," and the Restrictive Covenant, to be recorded, for said Purpose. Section 8. The Executive Director is hereby further authorized to negotiate amendments and clarifications to the Agreement, in substantially the form attached as Exhibit `B," with Developer, and is directed to present any amendment(s) or clarification(s) to the Board for its consideration, and, if satisfactory, approval. Section 9. 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 10. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: 4 1 ►r Br i ounsel 11/13/2025 Page 10 of 10