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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #19423 Date: 06/08/2026 Commission Meeting Date: 06/25/2026 Requesting Department: Department of Housing and Community Development Sponsored By: Rolando Escalona District Impacted: District 3 Type: Resolution Subject: Approve - Amended to Disbursement Agrmnt - Essence MIA Purpose of Item: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING AMENDED TERMS TO THE ESTABLISHED DISBURSEMENT AGREEMENT, ATTACHED AND INCORPORATED AS EXHIBIT "A," AS DESCRIBED HEREIN, TO 8TH STREET PROPERTIES, LLC, A FLORIDA LIMITED LIABILITY COMPANY TO THE AFFORDABLE HOUSING PROJECT LOCATED AT 829 SOUTHWEST 8TH STREET, 845 SOUTHWEST 8TH STREET, AND 847 SOUTHWEST 8TH STREET KNOWN AS "ESSENCE MIAMI" ("PROJECT"); 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. Background of Item: 8th Street Properties, LLC, a Florida Limited Liability Company ("Developer), is developing the proposed mixed -use development known as Essence Miami which will be located at 829 Southwest 8th Street, 845 Southwest 8th Street, and 847 Southwest 8th Street and will provide no fewer than eighty-eight (88) affordable and/or workforce rental units in District 3 ("Project"). On June 10, 2021, pursuant to Resolution No. R-21-0222, the City Commission allocated an amount not to exceed Five Million and 00/100 Dollars in Miami Forever Affordable Housing Limited Ad Valorem Bonds ($5,000,000.00) to the development of the affordable housing components of the Project. On July 30, 2021, HCLC approved the Project and established the Project's terms, requirements, conditions, and affordability requirements. On September 23, 2021, pursuant to Resolution No. R-21-0391, the City Commission approved the terms, conditions, and affordability requirements for the Project as set forth by HCLC. Pursuant to the approved Project terms, conditions, and affordability requirements, eighteen (18) of the Project's total eighty-eight (88) rental units will be restricted for households with incomes at or below sixty percent (60%) of median income as determined by Florida Housing Finance Corporation ("FHFC"), with adjustments and certain exceptions as provided by FHFC ("AMI"), and seventy (70) of the Project's total eighty-eight (88) rental units will be restricted for households with incomes at or below one hundred percent (100%) AMI. On April 27, 2022, the Developer executed loan documents with the City for the Five Million and 00/100 Dollars ($5,000,000.00) of Miami Forever Affordable Housing Limited Ad Valorem Bonds. Due to a significant increases in construction materials, the Developer requested Seven Million and 00/100 Dollars ($7,000,000.00) in additional funding to be able to complete the Project ("Additional Funding"). On April 29, 2025, pursuant to the Resolution No. 25-0174, the City Commission approved the Additional Funding for the affordable housing component of the Project that consisted of the following funding sources: Five Million, Three Hundred Ninety Thousand and 00/100 Dollars $5,390,000 from the District 3 Share of Miami Forever Affordable Housing Limited Ad Valorem Bonds, and One Million, Six Hundred Ten Thousand and 00/100 Dollars ($1,610,000.00) from the District 3 Share of Public Benefit Trust Funding, bringing the total City funding allocation to $12 Million for the development of the Essence Miami project. On May 22, 2026, the developer sent a letter to the Department of Housing and Community Development requesting an amendment to the Disbursement Agreement established to release 100% of each draw, so that the project can achieve the accelerated schedule and achieve completion by mid -December. The City Administration's recommends approving an amendment to the established Disbursement Agreement, as specified in Exhibit "A;" attached and incorporated for 8th Street Properties, LLC, known as Essence Miami, subject to any and all terms, requirements, and conditions to be set forth by the City of Miami ("City") Housing and Commercial Loan Committee ("HCLC") in its memoranda. Budget Impact Analysis Item is NOT Related to Revenue Item has NOT an Expenditure Item is funded by Bonds Total Fiscal Impact: Department of Housing and Community Development Review Completed Office of Management and Budget Office of Management and Budget City Manager's Office City Manager's Office Legislative Division Office of the City Attorney Office of the City Attorney Office of the City Attorney City Commission Reviewed B 06/10/2026 10:38 AM Luis Hernandez -Torres Marie Gouin Erica T. Paschal Natasha Colebrook -Williams Valentin J Alvarez Raymond Pereira Xavier Alban George K. Wysong III Maricarmen Lopez Victor Turner Department Head Budget Analyst Review Completed Budget Review Completed Assistant City Manager Review Completed Approved on behalf of the City Manager Legislative Division Review Completed ACA Review Deputy Attorney Review Approved Form and Correctness Meeting Completed Completed Completed Completed 06/10/2026 1:05 PM 06/10/2026 3:00 PM 06/10/2026 3:06 PM Completed 06/11/2026 11:14 AM 06/15/2026 4:13 PM 06/15/2026 9:45 PM 06/15/2026 9:48 PM 06/25/2026 9:00 AM Office of the City Clerk City Clerk's Office Rendered Completed 06/26/2026 4:27 PM City of Miami Legislation Resolution Enactment Number: R-26-0280 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 19423 Final Action Date:6/25/2026 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING AN AMENDMENT TO THE LOAN DOCUMENTS AND DISBURSEMENT AGREEMENT, ATTACHED AND INCORPORATED AS EXHIBIT "A, AS DESCRIBED HEREIN, FOR THE AFFORDABLE HOUSING PROJECT KNOWN AS "ESSENCE MIAMI," LOCATED AT 829 SOUTHWEST 8TH STREET, 845 SOUTHWEST 8TH STREET, AND 847 SOUTHWEST 8TH STREET, MIAMI, FLORIDA ("PROJECT"); AUTHORIZING MODIFICATIONS TO THE DISBURSEMENT REQUIREMENTS FOR FUNDING THE PROJECT, INCLUDING THE REMOVAL OF THE DEVELOPER CONTRIBUTION PERCENTAGE REQUIREMENT, AND AUTHORIZING REIMBURSEMENT OF ELIGIBLE INCURRED PROJECT COSTS FROM PREVIOUSLY APPROVED FUNDS TO ACCELERATE THE COMPLETION OF PROJECT CONSTRUCTION; SUBJECT TO COMPLIANCE WITH THE CITY'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT GUIDELINES, THE RECEIPT BY THE CITY MANAGER OF THE WRITTEN APPROVAL OF THE MODIFICATION BY THE CITY'S HOUSING AND COMMERCIAL LOAN COMMITTEE ("HCLC") AND SUBJECT TO THE TERMS, CONDITIONS, AND RESTRICTIONS CONTAINED IN THE HCLC APPROVAL (COLLECTIVELY, "HCLC APPROVAL"), AND ALL FEDERAL, STATE, AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS FOR SAID PURPOSE; SUCH MODIFICATION TO BE IN COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE OF FLORIDA, LOCAL, AND CITY LAWS, RULES, AND REGULATIONS FOR AFFORDABLE HOUSING PROJECTS, INCLUDING BUT NOT LIMITED TO THE CITY'S SEVEN (7) AFFORDABLE HOUSING BONDS PROJECTS STRATEGIES, AND THE MIAMI FOREVER AFFORDABLE HOUSING LIMITED AD VALOREM BONDS (COLLECTIVELY, "LAWS"); SUBJECT TO THE RECEIPT BY THE CITY MANAGER OF THE HCLC APPROVALS; 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, SUBJECT TO COMPLIANCE WITH ALL LAWS AND SUBJECT TO THE DEVELOPER FULFILLING ALL OF THE TERMS AND CONDITIONS TO BE SET FORTH IN THE HCLC APPROVALS, IN ORDER TO APPROVE THE AMENDMENT TO THE LOAN DOCUMENTS FOR THE PROJECT; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, 8th Street Properties, LLC, a Florida Limited Liability Company ("Developer), is developing the proposed mixed -use development known as Essence Miami which will be located at 829 Southwest 8th Street, 845 Southwest 8th Street, and 847 Southwest 8th Street and will provide no fewer than eighty-eight (88) affordable and/or workforce rental units in District 3 ("Project"); and WHEREAS, on June 10, 2021, pursuant to Resolution No. R-21-0222, the City Commission allocated an amount not to exceed Five Million and 00/100 Dollars ($5,000,000.00) in Miami Forever Affordable Housing Limited Ad Valorem Bonds to the development of the affordable housing components of the Project; and WHEREAS, on July 30, 2021, the Housing and Commercial Loan Committee ("HCLC") approved the Project and established the Project's terms, requirements, conditions, and affordability requirements; and WHEREAS, on September 23, 2021, pursuant to Resolution No. R-21-0391, the City Commission approved the terms, conditions, and affordability requirements for the Project as set forth by HCLC; and WHEREAS, pursuant to the approved Project terms, conditions, and affordability requirements, eighteen (18) of the Project's total eighty-eight (88) rental units will be restricted for households with incomes at or below sixty percent (60%) of median income as determined by Florida Housing Finance Corporation ("FHFC"), with adjustments and certain exceptions as provided by FHFC ("AMI"), and seventy (70) of the Project's total eighty-eight (88) rental units will be restricted for households with incomes at or below one hundred percent (100%) AMI; and WHEREAS, on April 29, 2025, pursuant to the Resolution No. 25-0174, the City Commission approved an additional funding allocation for the affordable housing components of the Essence Miami Project, increasing the total City funding allocation for the Project to an amount not to exceed Twelve Million and 00/100 Dollars ($12,000,000.00); and WHEREAS, on May 22, 2026, the Developer requested a modification to the terms of the funding documents (the "Loan Documents") concerning the construction draws reimbursement; and WHEREAS, pursuant to the Loan Documents, the Developer is currently required to contribute a specified percentage of Project costs prior to accessing certain City funds; and WHEREAS, the proposed amendment does not increase the total amount of City funding previously approved for the Project, but solely modifies the conditions governing the disbursement of such funds; and WHEREAS, the City has determined that modifying the disbursement requirements of the Loan Documents will facilitate the timely completion of construction and deployment of the Project; and WHEREAS, the City Commission's approval is subject to the approval of the modification request by HCLC and the Developer fulfilling, in a timely manner, any and all terms, requirements, and conditions to be set forth by HCLC in its memoranda ("HCLC Approvals"); and WHEREAS, such modification shall be in compliance with all applicable Federal, State of Florida, local, and City laws, rules, regulations, and procedures, including, but not limited to, the Bonds Strategies, the Miami Forever Bond Validation Order, the Charter of the City of Miami, Florida, as amended ("City Charter"), and the Code of the City of Miami, Florida, as amended ("City Code") (collectively, "Laws"); and WHEREAS, the City Administration recommends approving an amendment to the Loan Documents, for the Project, subject to any and all terms, requirements, and conditions to be set forth by the HCLC Approvals; 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. Subject to the receipt by the City Manager of the HCLC Approvals, which shall be consistent with the City Commission approval, the City Commission hereby authorizes1 the amendment to the Loan Documents and Disbursement Agreement, as specified in Exhibit "A," attached and incorporated, for this Project, to remove the Developer contribution percentage requirement and the modification for the reimbursement of eligible incurred Project costs, to accelerate the completion of Project construction. Section 3. Subject to the receipt by the City Manager of the HCLC Approvals, which shall be consistent with the City Commission approval, the City Commission hereby authorizes1 and directs the City Manager to negotiate and execute any and all necessary documents, including amendments, extensions, and modifications, all in form acceptable to the City Attorney, for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: rge = . Wyy ng IIQ, C y ttor -y 6/15/2026 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.