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Home My WebLink AboutCRA-R-26-0003 MemorandumSEOPW Board of Commissioners Meeting January 22, 2026 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King Date: January 15, 2026 and Members of the CRA Board File: 18808 From: James McQueen Executive Director Subject: Ratifying and Authorizing Additional Funding for the SEOPW CRA Quadplex Affordable Homeownership Enclosures: File # 18808 - Backup_Quadplex additional funding BACKGROUND: A Resolution of the Board of Commissioners ("Board) of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA"), ratifying and authorizing the disbursement of additional funds to the SEOPW CRA Quadplex Affordable Homeownership Development Project ("Project"), located at 244 Northwest 16th Street, Miami, Florida 33136 ("Property"), in an amount not to exceed One Million One Hundred Thousand Dollars and Zero Cents ($1,100,000.00) ("Funds"), for a total project cost of Two Million Seven Hundred Thousand Dollars and Zero Cents ($2,700,000.00) ("Purpose"). Project History In 2014, the City of Miami ("City") by Resolution R-14-0391 conveyed three properties including 244 N.W. 16th Street, to the SEOPW CRA for the purpose of affordable housing development. Through a miscellaneous architectural services Request for Qualifications (RFQ) No. 15-04, a local architect was engaged, and a full set of construction drawings were created for a custom -designed 3-story, 4-unit homeownership development project ("Project"). Permitting for the Project began on March 20, 2017, and on November 6, 2018, with permitting still ongoing, the SEOPW CRA issued an Invitation to Bid ("ITB") No. 18-02 for the construction of the Project. On December 18, 2018, four (4) bids to the ITB were received, including the lowest bid by Runu Contracting, Inc. ("Runu"). On June 27, 2019, by Resolution CRA-R-19-0018, the SEOPW CRA Board accepted Runu's bid, and authorized the allocation of funding in the amount of One Million Six Hundred Thousand Dollars and Zero Cents ($1,600,000.00) toward the construction of the Project. Project Issues, Delays, and Additional Funding Need With funding in place, a contractor engaged, and permitting well underway, it was anticipated that construction would commence in the Fall 2018, but drawing revisions were needed to address the City Building department review comments, which resulted in extended delays in permit approval. These delays in obtaining the permit were also significantly impacted by the onset of the COVID-19 pandemic ("Pandemic") and eventual shutdowns. Thus, the permit was not approved until March 10, 2021, more than two (2) years after Runu's bid was submitted and still while impacts from the Pandemic were being felt. Due to the extended length of time from the submitted bid and the permit approval, it was agreed that an increase to the bid amount was warranted. Runu provided documentation from each subcontractor indicating an approximate increase of 20.4% from the original bid amount was appropriate. A change order was executed and notice to proceed was issued on July 14, 2021. Underground work to install footings and foundations began in Fall 2021 until an unforeseen issue regarding the underground foundation of a neighboring property structure along the west property line of the Project required a redesign of the Project's foundations to off -center or `eccentric' footings. A major structural revision such as this requires revised plans to be submitted to the City Building Department for approval before any further inspections can be granted. Thus, the Project once again stalled, and the revised structural plans were not approved by the City Building Department until May 16, 2022. The change to the structural design and the delay resulted in even further increased costs for both additional steel and concrete at the foundations, along with significant inflation impacts for all other portions of the Project. A series of meetings between the SEOPW CRA, Architectural/Engineering ("A/E") team, and Runu took place to `value engineer' the Project, reviewing all project aspects, eliminating any unnecessary features and considering simple design changes that could reduce costs to counter the unexpected increases in costs to materials and labor that the Project and entire world was experiencing (due to the Pandemic). The result was a series of approved change orders, both positive and negative in cost, but with a significant net increase in the Project cost and timeline. Costs Outside of Construction Bid It is important to note that the Project issues and delays caused increases in the Project cost beyond that of the General Contractor's ("GC") bid price for construction. Additional services were required of the Architect and Engineers, relating to re -designs and additional construction administration, along with increases to services and fees such as additional permits, inspection and review fees, special inspector fees, utility installations, and general conditions. This Resolution seeks to ratify and approve the additional funding for all components required to complete the Project. Summary Timeline of Events • January 2015 — Property conveyed by the City to the SEOPW CRA; • June 2015 — RFQ No. 15-04 for architectural services issued and A/E selected; • March 2016 — A/E engaged and design work begins; • March 2017 — Permitting begins; • November 2018 — ITB No. 18-02 for contractor released; • December 2018 — Bids received; Page 2 of 9 • June 2019 — SEOPW CRA Board approved and accepted the bid and the Project funding in the amount of $1,600,000.00; • Early 2020 — Covid Pandemic Shutdowns begin; • March 2021 — Permit approved; • October 2021 — Underground work begins; • Late 2021 — Work halts due to foundation issue requiring revised drawings and building department approval; • May 2022 — Revisions approved, underground work and Project resumes. Current Project Status and Completion At this time the Project is approximately 90% complete with the interior of all units finished; fixtures, windows, doors, and cabinets installed; mechanical, electrical, and plumbing systems complete; and the building's interior and exterior painted. Remaining items for completion include the parking lot and site improvements, landscaping, fencing, roof ladder, and clean-up before final inspections can be scheduled. It is anticipated that final inspections will take place and when the inspection us successful the Certificate of Occupancy ("CO") should be obtained in February 2026. Following Completion The SEOPW CRA's intent for the development is ultimately to sell these units to four (4) families who meet the Miami -Dade County income target of eighty (80%) or less of the Area Median Income ("AMI"), which is a requirement of our acceptance of conveyance of the property from the City. It is anticipated that an application process and/or lottery system will be put in place to dispose of the units to Overtown residents meeting the criteria, and it is assumed that the future home buyers will seek assistance from the City's District 5 first-time home buyer's program, as well as potential assistance from the SEOPW CRA. List of Back-up Documentation • Current photos of Project • List of all Project expenditures to date by vendor/provider • Construction budget comparison -project onset vs. final anticipated costs • Approved GC change orders It is recommended that the SEOPW CRA Board approve and adopt the attached Resolution, authorizing the additional allocation of the Funds for the Purpose stated herein. JUSTIFICATION: Page 3 of 9 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 163.335(6), Florida Statutes, of the Community Redevelopment Act found and declared that there exists "...a severe shortage of housing affordable to residents of low or moderate income, including the elderly... [and] such condition(s) affect the health, safety and welfare of the residents... and retards their growth and economic and social development... "; and Section 2, Goal 6, of the Plan, lists "[i]mproving the [q]uality of [1]ife 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. Section 2, Principle 3, of the Plan, describes that there "must be variety in [affordable] housing options," as a stated redevelopment principle. Section 2, Principle 10, of the Plan, indicates that neighborhood "[s]treets and [b]uildings must be attractive," as a stated redevelopment principle. Lastly, Section 2, Principle 14, of the Plan, ultimately requires the SEOPW CRA "do whatever ... in its power" to revitalize Overtown, as a stated redevelopment principle. FUNDING: Previous allocation: $1,600,000.00 Funding request: $1,100,000.00 Total funding: $2,700,000.00 allocated from Account No. 10050.920101.670000.0000.00000 — "Construction In Progress." FACT SHEET: Project name: SEOPW CRA Quadplex Affordable Homeownership Development. Address: 244 N.W. 16th Street, Miami, FL 33136 Scope of work or services (Summary): Development of a custom designed 4-unit residential homeownership building with on -site parking which includes one 3-bedroom 2.5 bath multi -level unit, two 2-bedroom 2.5 bath multi -level units, and one 1-bedroom 1 bath accessible ground level unit, and on - site parking and site improvements Page 4 of 9 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: January 22, 2026 CRA Section: Brief description of CRA Agenda Item: Authorizing additional funds in an amount not to exceed $1,100,000.00 for the completion of the SEOPW CRA Quadplex Affordable Homeownership Development Project. Project Number YES, there Account Code: (if applicable): are sufficient funds in Line Item: 10050.920101.670000.0000.00000 Amount: $1 , 1 0 0 , 0 0 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: Total Project Cost $2,700,000.00 Page 5 of 9 Approved by: Approval: Executive Director 1/15/2026 Miguel A Valcntiri, Finance Officer 1/15/2026 Page 6 of 9 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-26-0003 File Number: 18808 Final Action Date:1/22/2026 A RESOLUTION OF THE BOARD OF COMMISSIONERS ("BOARD") OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), RATIFYING AND AUTHORIZING THE DISBURSEMENT OF ADDITIONAL FUNDS TO THE SEOPW CRA QUADPLEX AFFORDABLE HOMEOWNERSHIP DEVELOPMENT PROJECT ("PROJECT"), LOCATED AT 244 NORTHWEST 16TH STREET, MIAMI, FLORIDA 33136 ("PROPERTY"), IN AN AMOUNT NOT TO EXCEED ONE MILLION ONE HUNDRED THOUSAND DOLLARS AND ZERO CENTS ($1,100,000.00) ("FUNDS"), FORA TOTAL PROJECT COST OF TWO MILLION SEVEN HUNDRED THOUSAND DOLLARS AND ZERO CENTS ($2,700,000.00) ("PURPOSE"); AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE THE FUNDS AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION, SUBJECT TO THE AVAILABILITY OF FUNDING, FROM ACCOUNT NO. 10050.920101.670000.0000.00000 — "CONSTRUCTION IN PROGRESS"; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN AGREEMENT, INCLUDING ANY AND ALL DOCUMENTS NECESSARY, ALL IN FORMS ACCEPTABLE TO COUNSEL; 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 ("Plan"); and WHEREAS, Section 163.335(6), Florida Statutes, of the Community Redevelopment Act found and declared that there exists "...a severe shortage of housing affordable to residents of low or moderate income, including the elderly... [and] such condition(s) affect the health, safety and welfare of the residents... and retards their growth and economic and social development... "; and WHEREAS, Section 2, Goal 6, of the Plan, encourages "[i]mproving the [q]uality of [1]ife for residents [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, describes that there "must be variety in [affordable] housing options," as a stated redevelopment principle; and Page 7 of 9 WHEREAS, Section 2, Principle 10, of the Plan, indicates that neighborhood " [s]treets and [b]uildings must be attractive," as a stated redevelopment principle; and WHEREAS, Section 2, Principle 14, of the Plan, ultimately requires the SEOPW CRA "do whatever ... in its power" to revitalize Overtown, as a stated redevelopment principle; and WHEREAS, on April 28, 2014, the SEOPW CRA Board, by Resolution No. CRA-R-14-0035, accepted the conveyance of the property located at 244 Northwest 16th Street, Miami, Florida 33136 ("Property") from the City of Miami ("City") for the purpose of developing affordable housing; and WHEREAS, on October 9, 2014, the City Board, by Resolution R-14-0391, authorized the conveyance of the Property to the SEOPW CRA for the purpose of affordable housing development; and WHEREAS, via Request for Qualifications (RFQ 15-04), and Resolution(s) CRA-R-15-0030 and CRA-R-15-0051, the SEOPW CRA received authorization to procure professional design services for the project with Design2Form, LLC, a Florida Limited Liability Company; and WHEREAS, in March of 2017, completed design plans for the Project were submitted to the City for permit review; and WHEREAS, on November 6, 2018, with permitting still ongoing, the SEOPW CRA Board of Commissioners, via Invitation to Bid (ITB 18-02), and Resolution CRA-R-19-0018, authorized the procurement of a general contractor and approved the bid by Runu Contracting, Incorporated, a Florida For -Profit Corporation, authorizing funding for construction of the Project in the amount of One Million Six Hundred Thousand Dollars and Zero Cents ($1,600,000.00); and WHEREAS, in 2020, the COVID-19 pandemic ("Pandemic") forced shutdowns, affecting efficiency in the City's workflow, including that of the building permit review process; and WHEREAS, the building permit for the Project remained in review until March of 2021, warranting an increase to the bid amount to account for increased labor and material costs stemming from the Pandemic and material availability; and WHEREAS, shortly after work commenced in Fall of 2021, an unforeseen condition relating to the underground foundations near the adjacent property structure caused additional costs and delays due to needed engineering redesign, additional permit reviews, and additional concrete and steel reinforcing; and WHEREAS, work was halted and resumed in May of 2022, when prices for labor and materials had increased further; and WHEREAS, the Project is nearing completion, but requires additional funding, in an amount not to exceed One Million One Hundred Thousand Dollars and Zero Cents ($1,100,000.00) ("Funds"), for increased costs, resulting from unforeseen conditions, project delays, and issues related to the Pandemic ("Purpose"); and WHEREAS, the Executive Director wishes to disburse the Funds for the Project, for a total project cost of Two Million Seven Hundred Thousand Dollars and Zero Cents ($2,700,000.00), for the Purpose stated herein; and WHEREAS, the Board wishes to ratify and authorize the Executive Director's additional disbursement of the Funds to the Project, for the Purpose stated herein; and Page 8 of 9 WHEREAS, the Board of Commissioners finds that authorizing this Resolution would further the SEOPW CRA 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 Executive Director is hereby authorized to disburse the Funds, at his discretion, on a reimbursement basis or directly to vendors, upon presentation of invoices and satisfactory documentation from Account No. 10050.920101.670000.0000.00000 — "Construction In Progress" for the Purpose stated herein. Section 3. The Executive Director is hereby authorized to negotiate and execute an agreement, including any and all necessary documents, and all -in forms acceptable to Counsel, for said Purpose. Section 4. 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 same with the SEOPW CRA Clerk. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: ounsel 1/15/2026 Page 9 of 9