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HomeMy WebLinkAboutSubstitution Memo from Dept. of Housing and Community DevelopmentCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: James Reyes, DATE: June 18, 2026 FILE: 19456 City Manager FROM: Victor Turner, Director Dpt. of Housing and Community Development SUBJECT: Substitution City Manager's Finding Memorandum REFERENCES: PH.5 ENCLOSURES: Memorandum Please find attached a substitution memorandum for PH.5 (File ID: 19456) for the June 25, 2026, commission meeting. This substitution is required because the City Manager's Finding memorandum was not revised or signed before the legislative printing deadline. As a reminder the purpose of this agenda item is to authorize the City Manager to execute a Ninety Nine (99) year ground lease agreement ("Lease"), between the City of Miami ("City") and Flagler Street, LLC. ("Developer") on the city -owned parcel of land located at 5350 West Flagler Street, Miami, Florida, for the development of affordable elderly rental housing project for low-income seniors. Upon approval, the signed memorandum will be forwarded to the Agenda Office for distribution to the Mayor and all Commissioners. Thank you for your assistance in updating the record. 9Z :Z Wd *z Nnr 9101 ©3AIJ3 J I 0(451p mwAtio-PoM o214 n,.d vterci-el:nu CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM James Reyes, DATE: June 15, 2026 19456 City Manager SUBJEC 1 Bid Waiver -Ground Lease Agreement 5350 West Flagler Street, LLC. Victor Tumer, Director Dpt. of Housing and Community Development REFERENCES: ENCLOSURES: BACKGROUND Pursuant to Resolution No. R-25-0062, adopted on February, 27 2025, the City Commission authorized the leasing of certain City of Miami ("City") owned parcels to 5350 Flagler Street, LLC ("Developer") for the development of an affordable rental housing project for seniors consisting of approximately ninety-eight (98) units. It is the intent of the Developer and the City for the Project to be developed as a mixed use affordable rental housing project for low-income seniors on the parcels under a ninety-nine (99) years ground lease ("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 development of affordable housing projects requires the Developer to obtain construction and permanent loans from lenders, housing finance agencies, and other funding sources. Such financing sources customarily require evidence of site control, including an executed ground lease, prior to issuing binding financing commitments. -1 N CZZ The City Commission finds that execution of the ground lease agreements is necessary to allow` the Developer to obtain the financing required to construct the Project. The City Commission desires to clarify that the ground lease agreements may be executed for Yv purposes of establishing site control and facilitating financing. -10 The City shall require the following in order to lease the Parcels to the Developer: (i) evide ce r satisfactory to the Director of the Department of Housing and Community Development ("p reck") that financial commitments from the lender or lenders have been received; (ii) any mortgas m obtained by the Developer on the Parcel(s) will be subject to the approval of the Director, which such approval shall not be unreasonably withheld. 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. 171 C D RECOMMENDATION In Tight of the above stated, approval of a waiver of the formal requirements of competitive sealed bidding methods as not being practicable or advantageous to the City as set forth in the City Code of Ordinance, as amended, specifically Section 18-85 (A), and the affirmation of these written findings and the forwarding of the same to the City Commission for ratification by a four -fifths vote is respectfully requested. -7 ROVED DISAPPROVAL: 4 "n .�mej!'�I City`► . r ca O C) cr. i rri c ry 0 rn e p C ri r- '•rri .'xa rV CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM James Reyes, City Manager Victor Turner, Director _ �r 5 Dpt. of Housing and Community Development REFERENCES: DATE: June 15, 2026 FILE: 19456 SUBJECT. Bid Waiver -Ground Lease Agreement 5350 West Flagler Street, LLC. ENCLOSURES: BACKGROUND Pursuant to Resolution No. R-25-0062, adopted on February, 27 2025, the City Commission authorized the leasing of certain City of Miami ("City") owned parcels to 5350 Flagler Street, LLC ("Developer") for the development of an affordable rental housing project for seniors consisting of approximately ninety-eight (98) units. It is the intent of the Developer and the City for the Project to be developed as a mixed use affordable rental housing project for low-income seniors on the parcels under a ninety-nine (99) years ground lease ("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 development of affordable housing projects requires the Developer to obtain construction and permanent loans from lenders, housing finance agencies, and other funding sources. Such financing sources customarily require evidence of site control, including an executed ground lease, prior to issuing binding financing commitments. The City Commission finds that execution of the ground lease agreements is necessary to allow the Developer to obtain the financing required to construct the Project. The City Commission desires to clarify that the ground lease agreements may be executed for purposes of establishing site control and facilitating financing. 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, which such approval shall not be unreasonably withheld. 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. RECOMMENDATION In light of the above stated, approval of a waiver of the formal requirements of competitive sealed bidding methods as not being practicable or advantageous to the City as set forth in the City Code of Ordinance, as amended, specifically Section 18-85 (A), and the affirmation of these written findings and the forwarding of the same to the City Commission for ratification by a four -fifths vote is respectfully requested. ❑ APPROVED: ❑ DISAPPROVAL: James Reyes, City Manager