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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #18359 Date: 10/17/2025 Commission Meeting Date: 12/11/2025 Requesting Department: Department of Housing and Community Development Sponsored By: Joe Carollo District Impacted: District 3 Type: Resolution Subject: Execute - Lease Agreement - SG Little Havana LLC Purpose of Item: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR - FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE CITY MANAGER'S FINDING, ATTACHED AND INCORPORATED AS EXHIBIT "C," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS FOR THE CITY OF MIAMI ("CITY") PURSUANT TO SECTIONS 29-B(A) OF THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CHARTER"), AND SECTION 18-182(C) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"); WAIVING THE REQUIREMENTS FOR SAID PROCEDURES; AUTHORIZING THE CITY MANAGER TO EXECUTE A NINETY NINE (99) YEAR GROUND LEASE AGREEMENT ("LEASE"), RENEWABLE FOR AN ADDITIONAL 99 YEARS, BETWEEN THE CITY OF MIAMI ("CITY") AND SG LITTLE HAVANA, LLC;("DEVELOPER") ON THE CITY -OWNED PARCELS OF LAND, IDENTIFIED AS GROUP"A," BY FOLIO NUMBER(S) 01-4102-006-6450, 01-4102-006-6460, 01-4102-006-6470, 01-4102-006-6480 AND 01-4102-006-6490, LOCATED IN MIAMI, FLORIDA AND GROUP "B" IDENTIFIED AS FOLIO NUMBER(S) 01-4138-003-2280, 01-4138-003- 2270,01-4138-003-2260, 01-4138-003-2250, 01-4138-003-2240 AND 01-4138-003-2150, MIAMI,FLORIDA, AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A," AND EXHIBIT "B," RESPECTIVELY, ATTACHED AND INCORPORATED, FOR THE DEVELOPMENT OF AFFORDABLE ELDERLY RENTAL HOUSING PROJECT FOR LOW-INCOME SENIORS; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS, EXTENSIONS, AND MODIFICATIONS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY; SUCH LEASE SUBJECT UPON SUCCESSFUL REMEDIATION OF EXISTING ENVIRONMENTAL CONDITIONS. Background of Item: On February 13, 2025, pursuant to City of Miami Resolution No.25-0038, the City Commission authorized the purchase of the properties, identified an assemblage of properties located within City Commission District 3, which consists of five (5) properties with folio numbers 01-4102-006- 6480, 01-4102-006-6490, 01-4102-006-6470, 01-4102-006-6460, and 01-4102-006-6450 ("collectively, the "Alternative Property"), in the amount of $11,740,000.00 allocated as follows: Six Million, One Hundred Sixty Three Thousand, Sixteen Dollars ($6,163,016.00) from the District 3 Miami Forever Bond Affordable Housing fund; One Million, One Hundred Sixty -Eight Thousand, Nine Hundred Eighty -Four Dollars ($1,168,984.00) from the District 3 Real Estate Acquisition and Accessible Housing GF, Capital Project No. 40-6183416; Two Hundred and Eight Thousand Dollars ($208,000.00) from the District 3 Parks, Streets, Affordable Housing, and Lighting Improvements Reserve GF, Capital Project No. 40-B40713A; Two Million Dollars ($2,000,000.00) from the District 3 Affordable Housing Trust Fund allocation; and Two Million, Two Hundred Thousand Dollars ($2,200,000.00) from the District 3 Public Benefit Trust fund (collectively, the "Funding Sources"). On June 17, 2025, pursuant to City of Miami Resolution No.25-0224, the City Commission authorized the purchase of the properties, which comprises of six (6) properties with folio numbers 01-4138-003-2240, 01-4138-003-2250, 01-4138-003-2260, 01-4138-003-2270, 01- 4138-003-2280, and 01-4138-003-2150; located at 901 Southwest 8th Street, 925 Southwest 8th Street, 939 Southwest 8th Street, 955 Southwest 8th Street, 965 Southwest 8th Street And 922 Southwest 7th Street, Miami, Florida ("collectively "Property"), in the total amount of $14,790,000.00, with funds being allocated, appropriated, and awarded from District 3 Miami For Everyone Program Funds Trust Fund in an amount not to exceed One Million Three Hundred Seventeen Thousand Seventy Dollars ($1,317,070.00), from the Affordable Housing Trust Fund in an amount not to exceed Eleven Million Ninety Six Thousand Three Hundred Seventy One Dollars ($11,096,371.00), and from Community Development Block Grant ("CDBG") Funds in an amount not to exceed Two Million Three Hundred Seventy Six Thousand Five Hundred Fifty Nine Dollars ($2,376,559.00) (collectively, the "Funding Sources"). On October 14, 2025, Swerdlow Group, submitted to the City of Miami a Letter of Request for the development of affordable rental project for low-income seniors ("Project"). Swerdlow Group, is the parent company of the of Developer and Swerdlow Group has completed various affordable housing developments within the City and currently has others at various stages of construction and is currently in good standing with the City. The proposed Project will have approximately three hundred (300) units, focusing on low- income people 55 years and older with an average annual income of no more than 60% of the Annual Area Income ("AMI"), as developed by the U.S. Department of Housing and Urban Development ("HUD"). It is the intent of the Developer and the City for the Project to be developed as an affordable rental housing project for low-income seniors on the parcels under a ninety-nine (99) years ground lease, renewable for an additional 99 years ("Lease"). Section 29-B(a) of the City Charter allows for the conveyance or disposition of City -owned property for the implementation of projects which are intended to benefit people or households with low and/or moderate income. The City shall require the following in order to lease the Parcel to the Developer: (i) evidence satisfactory to the Director of the Department of Housing and Community Development ("Director") that financial commitments from the lender or lenders have been received; (ii) any mortgages obtained by the Developer on the Parcel(s) will be subject to the approval of the Director; and (iii) the closing of the lease agreement occurs simultaneously with the closing of the construction financing by the lender(s), if any. The approval of the Lease shall be subject to compliance with all applicable federal, State of Florida, and local laws, rules, regulations, or restrictions; upon successful remediation of existing environmental conditions; and the negotiation and execution of any other necessary documents all in form(s) acceptable to the City Attorney, for the purposes stated herein and in furtherance of the Project. Budget Impact Analysis Item is NOT Related to Revenue Item has NOT an Expenditure Item is NOT funded by Bonds Total Fiscal Impact: Total Fiscal Impact: $0 Reviewed B Department of Housing and Community Development Review Completed 10/22/2025 9:39 AM Office of Management and Budget Luis Hernandez -Torres Office of Management and Budget City Manager's Office City Manager's Office City Manager's Office Legislative Division Office of the City Attorney Office of the City Attorney City Commission City Commission Office of the Mayor Office of the City Clerk Office of the City Clerk Marie Gouin Erica T. Paschal Natasha Colebrook -Williams Arthur Noriega V Valentin J Alvarez Raymond Pereira George K. Wysong III Nicole Ewan Maricarmen Lopez Mayor's Office City Clerk's Office City Clerk's Office Victor Turner Department Head Budget Analyst Review Completed 10/22/2025 3:01 PM Budget Review Completed 10/22/2025 3:44 PM Assistant City Manager Review Completed 10/24/2025 1:13 PM Deputy City Manager Review Completed 10/24/2025 1:39 PM City Manager Review Completed 10/24/2025 1:47 PM Legislative Division Review Completed 10/27/2025 12:36 PM ACA Review Completed 11/10/2025 4:43 PM Approved Form and Correctness Completed 11/10/2025 5:56 PM Meeting Completed 11/20/2025 9:00 AM Meeting Completed 12/11/2025 9:00 AM Signed by the Mayor Completed 12/11/2025 7:13 PM Signed and Attested by the City Clerk Completed 12/11/2025 7:46 PM Rendered Completed 12/11/2025 7:46 PM City of Miami Legislation Resolution Enactment Number: R-25-0519 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 18359 Final Action Date:12/11/2025 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE CITY MANAGER'S FINDING, ATTACHED AND INCORPORATED AS EXHIBIT "C," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS FOR THE CITY OF MIAMI ("CITY") PURSUANT TO SECTIONS 29- B(A) OF THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CHARTER"), AND SECTION 18-182(C) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"); WAIVING THE REQUIREMENTS FOR SAID PROCEDURES; AUTHORIZING THE CITY MANAGER TO EXECUTE A NINETY NINE (99) YEAR GROUND LEASE AGREEMENT ("LEASE"), RENEWABLE FOR AN ADDITIONAL 99 YEARS, BETWEEN THE CITY OF MIAMI ("CITY") AND SG LITTLE HAVANA, LLC ("DEVELOPER"), ON THE CITY -OWNED PARCELS OF LAND, IDENTIFIED AS GROUP "A," BY FOLIO NUMBER(S) 01-4102-006-6450, 01-4102-006- 6460, 01-4102-006-6470, 01-4102-006-6480 AND 01-4102-006-6490, LOCATED IN MIAMI, FLORIDA AND GROUP "B," IDENTIFIED AS FOLIO NUMBER(S) 01-4138-003- 2280, 01-4138-003-2270, 01-4138-003-2260, 01-4138-003-2250, 01-4138-003-2240 AND 01-4138-003-2150, MIAMI, FLORIDA, AS MORE PARTICULARLY DESCRIBED IN EXHIBITS "A" AND "B," RESPECTIVELY, ATTACHED AND INCORPORATED, FOR THE DEVELOPMENT OF AFFORDABLE ELDERLY RENTAL HOUSING PROJECT FOR LOW-INCOME SENIORS; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS, EXTENSIONS, AND MODIFICATIONS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY; SUCH LEASE SUBJECT UPON SUCCESSFUL REMEDIATION OF EXISTING ENVIRONMENTAL CONDITIONS, IF ANY. WHEREAS, on February 13, 2025, pursuant to City of Miami ("City") Resolution No. R- 25-0038, the City Commission authorized the purchase of the properties, identified an assemblage of properties located within City Commission District 3, which consists of five (5) properties with folio numbers 01-4102-006-6480, 01-4102-006-6490, 01-4102-006-6470, 01- 4102-006-6460, and 01-4102-006-6450 ("collectively, the "Alternative Property"), in the amount of $11,740,000.00 allocated as follows: Six Million, One Hundred Sixty Three Thousand, Sixteen Dollars ($6,163,016.00) from the District 3 Miami Forever Bond Affordable Housing fund; One Million, One Hundred Sixty -Eight Thousand, Nine Hundred Eighty -Four Dollars ($1,168,984.00) from the District 3 Real Estate Acquisition and Accessible Housing GF, Capital Project No. 40-6183416; Two Hundred and Eight Thousand Dollars ($208,000.00) from the District 3 Parks, Streets, Affordable Housing, and Lighting Improvements Reserve GF, Capital Project No. 40-B40713A; Two Million Dollars ($2,000,000.00) from the District 3 Affordable Housing Trust Fund allocation; and Two Million, Two Hundred Thousand Dollars ($2,200,000.00) from the District 3 Public Benefit Trust fund (collectively, the "Funding Sources"); and WHEREAS, on June 17, 2025, pursuant to City Resolution No. R-25-0224, the_City Commission authorized the purchase of the properties, which comprises of six (6) properties with folio numbers 01-4138-003-2240, 01-4138-003-2250, 01-4138-003-2260, 01-4138-003- 2270, 01-4138-003-2280, and 01-4138-003-2150; located at 901 Southwest 8th Street, 925 Southwest 8th Street, 939 Southwest 8th Street, 955 Southwest 8th Street, 965 Southwest 8th Street And 922 Southwest 7th Street, Miami, Florida (collectively, "Property"), in the total amount of $14,790,000.00, with funds being allocated, appropriated, and awarded from District 3 Miami For Everyone Program Funds Trust Fund in an amount not to exceed One Million Three Hundred Seventeen Thousand Seventy Dollars ($1,317,070.00), from the Affordable Housing Trust Fund in an amount not to exceed Eleven Million Ninety Six Thousand Three Hundred Seventy One Dollars ($11,096,371.00), and from Community Development Block Grant ("CDBG") Funds in an amount not to exceed Two Million Three Hundred Seventy Six Thousand Five Hundred Fifty Nine Dollars ($2,376,559.00) (collectively, "Funding Sources"); and WHEREAS, on October 14, 2025, SG Little Havana, LLC, submitted to the City a Letter of Request for the development of affordable rental project for low-income seniors ("Project"); and WHEREAS, Swerdlow Group, is the parent company of the Developer and Swerdlow Group has completed various affordable housing developments within the City and currently has others at various stages of construction, and is currently in good standing with the City; and WHEREAS, the proposed Project will have approximately three hundred (300) units, focusing on low-income people 55 years and older with an average annual income of no more than 60% of the Annual Area Income ("AMI"), as developed by the U.S. Department of Housing and Urban Development ("HUD"); and WHEREAS, it is the intent of the Developer and the City for the Project to be developed as an affordable rental housing project for low-income seniors on the parcels under a ninety- nine (99) years ground lease, renewable for an additional 99 years ("Lease"); and WHEREAS, Section 29-B(a) of the City Charter allows for the conveyance or disposition of City -owned property for the implementation of projects which are intended to benefit people or households with low and/or moderate income; and WHEREAS, the City shall require the following in order to lease the Parcels to the Developer: (i) evidence satisfactory to the Director of the Department of Housing and Community Development ("Director") that financial commitments from the lender or lenders have been received; (ii) any mortgages obtained by the Developer on the Parcel(s) will be subject to the approval of the Director; and (iii) the closing of the lease agreement occurs simultaneously with the closing of the construction financing by the lender(s), if any; and WHEREAS, the approval of the Lease shall be subject to compliance with all applicable federal, State of Florida, and local laws, rules, regulations, or restrictions; upon successful remediation of existing environmental conditions, if any; and the negotiation and execution of any other necessary documents all in form(s) acceptable to the City Attorney, for the purposes stated herein and in furtherance of the Project; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. By a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, the City Manager's determinations, findings, and recommendations, attached and incorporated as Exhibit "B," pursuant to Sections 29-B(a) of the City Charter are ratified, approved, and confirmed and the City Commission hereby waives the requirements for said procedures. Section 3. The City Manager is authorized' to negotiate and execute a ninety-nine (99) years ground lease agreement, renewable for an additional 99 years ("Lease"), between the City and SG Little Havana, LLC, for the City -owned parcels of land located, as legally described in Exhibits "A" and "B," attached and incorporated, for the development of an affordable elderly rental housing project for low-income seniors. Section 4. The City Manager is further authorized' to negotiate and execute any and all other necessary documents, all in forms acceptable to the City Attorney, for the purposes stated herein. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ge = . Wyy ng II , C ty ttor -y 11/10/2025 1 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 City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.