HomeMy WebLinkAboutExhibit ACITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
'To: Members of the Housing and Date: October 29, 2025
Commercial Loan Committee
From: Victor Turner, Director
Subject: Gallery at Wagner Creek, LLC
Gallery at Wagner Creek Project
Reference:
Department of Housing & Community Development Enclosures:
Item Summary
BORROWER REQUEST:
• Requesting $4,848,080 in City Miami Forever GOB funds for the development of
Gallery at Wagner Creek project.
DEPARTMENTAL RECOMMENDATION
The Department has reviewed the Borrower's request and project financials and
recommends approving the above request.
BORROWER:
Gallery at Wagner Creek, LLC, a Florida limited liability company created for the development
of the project. Mr. Albert Milo Jr. is the principal of the parent company and all affiliated entities.
PROJECT
Gallery at Wagner Creek project will be phase I of a new 27-story, mix-use/mix income
residential multifamily tower that is part of a multiphase redevelopment of the Jackson Health
Medical Towers property located at 1500 NW 12 Avenue in the Allapattah neighborhood. The
project will consist of a total of 460 residential units consisting of 20 studios/one-bathroom units;
336 one-bedroom/one-bathroom units and 104 two-bedroom/one-bathroom units. The project will
include approximately 354 parking spaces. The units will be targeting households ranging from
extremely low income to workforce housing (30% to 120% of the area median income). Seventy
(70) units will be City -assisted units.
BACKGROUND
On July 22, 2025, the Borrower submitted a letter to Commissioner Miguel Angel Gabela
requesting $4,848,080 in GOB funds for the development of a new project to be known as the
Gallery at Wagner Creek, which is Phase I of a multi -phased project located in the City's Health
District in the Allapattah neighborhood. Seventy (70) units will be for households up to 30% of
AMI, of which 35 units will be set -aside for special needs households that will be assigned by a
State -approved certified referral agency. On August 29, 2025, the Borrower submitted a formal
proposal through the City's 2019 pipeline RFP.
BORROWER'S REQUEST
On September 2, 2025, the Borrower submitted a proposal requesting $4,848,080 in Miami
Forever Bonds ("GOB") funding for the development of the Gallery at Wagner Creek. The project
will consist of a 27-story tower with a total of 460 units that will be phase 1 of a multiphase
redevelopment of the Jackson Health Medical Towers located at 1500 NW 12 Ave in the Miami's
Health District in the Allapattah neighborhood. Seventy (70) units will be City assisted.
The GOB funds will be used to help bridge the project gap financing in order to make the 460-unit
project financially feasible. The total project cost is approximately $193,863,837.
DEPARTMENTAL RECOMMENDATION
The Department recommends the allocation of up to $4,848,080 in Miami Forever Bonds ("GOB")
funds for the development of the Gallery at Wagner.
The following loan terms and conditions shall apply:
1. Use of Funds: the GOB funds will be used for construction costs.
2. City Assisted Units: Seventy (70) project units shall be assisted with GOB funds. All units
will be targeting extremely low-income households up to 30% of area median income, of
which thirty-five (35) units will be for special needs households that will be assigned by a
State -approved certified referral agency.
3. Maximum Rent Levels: Rents charged on City -assisted units will be subject to Florida
Housing Finance Corporation for Multifamily Rental Programs/CWHIP Homeownership
Program rent limits. The rent and income limits are published annually by Florida Housing
Finance Corporation ("FHFC").
4. Affordability Period: an affordability period of 30 years will apply commencing from the
date the City approves the close-out of the project.
5. Loan Repayment & Interest Rate Terms: the loan will bear (0%) interest during construction
and throughout the Affordability Period. The loan will be due at the end of the Affordability
Period. Beginning in the first year from the effective date of the close-out, the Borrower
will pay back the principal amount amortized over 30 years at (1.00%) interest subject to
Gallery of Wagner Creek, LLC — 10/29/25
available cash flow. The project must maintain compliance with the affordability
requirements for 30 years. Failure to comply will result in the full repayment of principal
and interest at a default interest rate.
6. Draw Disbursements: The City shall not fund any hard cost draw request in an amount that
exceeds the City's initial contribution percentage of the entire development cost of the
project.
7. No Cash -out Refinancings: The City shall not subordinate its loan to any future refinancing
of loans superior to the City's position that is solely intended to "cash out" from the project.
The City may subordinate its debt in the future, at its sole discretion, to new senior loans
prompted by refinancings undertaken for interest rate savings and/or that pay for building
or capital improvements at this subject property if necessary.
8. City Incurred Costs: Borrower understands and agrees that $10,000 of the GOB funds may
be used by the City to cover costs incurred by the City on behalf of the project.
9. Increase in Project Costs: If the project costs increase ten percent (10%) or more of the
original budget, and the Borrower is not able to secure additional funding within 60 days
before the project commencement, the project will be subject to recommendation to the
Housing and Commercial Loan Committee for de -obligation of the project funding.
10. Retainage(s): Five percent (5%) of each hard cost draw request will be retained until the
City has received as part of the close-out, at the Borrower's sole cost, a Final Cost
Certification prepared by an independent certified public accountant, both in form and
substance acceptable to the City.
11. Commitment Fee: There will be a $5,000 commitment fee.
12. Eligible Project Costs: Eligible project costs will be effective from the date of
environmental clearance.
13. Reporting Compliance: Borrower is subject to compliance reporting requirements in the
process of construction and during the affordability period.
14. Development Benchmarks/Scope of Work: The project shall: (a) commence construction
within six (6) months from the Effective Date[" of the contract; (b) obtain all certificates of
occupancy required for the project within 30 months from the Construction
Commencement; and (c) have all project units rented within 12 months after the issuance
of project's certificate(s) of occupancy, but in no event later than 42 months from the
Effective Date.
15. Insurance Requirements: Borrower shall obtain and furnish evidence of insurance coverage
as the City may require in connection with the Project.
16. Affirmative Marketing Plan: Borrower shall provide an Affirmative Marketing Plan using
HUD's approved form and report to the City annually on all actions taken to comply with
said plan. The borrower shall comply with the requirements of the affordable housing notice
to City Officials Ordinance #13491.
17. Lottery: Thirty-five (35) of the Seventy (70) city -assisted units will be subject to a lottery,
which shall be conducted with a representative of the City of Miami present. The remainder
thirty-five (35) units set -aside for special needs households that will be assigned by a State-
[l] The "Effective Date" is the date on which the contract has been signed by the City Manager and attested to by
the City Clerk.
Gallery of Wagner Creek, LLC — 10/29/25
approved certified referral agency In addition, the project shall comply with the
requirements of the City of Miami Ordinance #13645, Resident Preference.
18. Project Signage: Borrower shall furnish signage identifying the Project and shall
acknowledge the contribution of the City by incorporating the seal of the City and the names
of the City commissioners and officials in all documents, literature, pamphlets,
advertisements, and signage, permanent or otherwise. All such acknowledgments shall be
in a form acceptable to the City.
19. De -obligation of Funds: The City may at its sole discretion de -obligate the funding
approved herein, if by no later than (15) months from the date of approval of the City
funds, the Borrower has failed to close on all funding commitments represented herein.
20. City Commission Approval: The allocation of GOB funds will be subject to City of Miami
Commission approval.
21. Discretionary Action by Administration: Staff shall have the discretion to approve and, by
way of Memorandum, authorize the City Manager to execute any and all documents needed
to further the Project Completion, provided, however, that the lien position nor the project
terms are not materially affected.
22. Project Default: If the City determines that the project is in default, the following conditions
will apply:
• The highest interest rate available under the law will be applicable for the funds
disbursed from the date of disbursement.
• The Restrictive Covenant will remain as a restriction on the Project property throughout
the Affordability Period; and
• The borrower, project developer, managing partner(s) of the borrower and/or other
individuals, principals and/or other entities as determined by the City, will be debarred
from receiving any City funding for a period of five (5) years.
HOUSING AND COMMERCIAL LOAN COMMITTEE DECISION:
Approved as Recommended by Staff
To Include Additional Conditions or Restrictions
Disapproved
To Include Further Action
Specify any® further action, conditions, or restrictions:
ate UD'/K� Girl /fit ✓ �r .
Chairperson or Representative
Yes ❑ No ❑ /A ❑
Yes 0 No/A 0
Yes 0 No LA❑
Yes ❑ No N/A ❑
HOUSING & COMMERCIAL
LOAN COMMf1TEE
OCT 2 9 2025
SAPPROVED
Gallery of Wagner Creek, LLC — 10/29/25