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HomeMy WebLinkAboutAgenda Item Summary Form1IVF ryG s O.• �'� F{` 3 AGENDA ITEM SUMMARY FORM File ID: #6501 oR ti9 Date: 09/18/2019 Requesting Department: Department of Housing and Communitv Development Commission Meeting Date: 12/12/2019 Sponsored By: District Impacted: All Type: Resolution Subject: Authorize Sale or Lease of Real Estate - Affordable/Workforce Rental or Homeownership Purpose of Item: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO LEASE, WITH AFFORDABLE/WORKFORCE RENTAL AND HOMEOWNERSHIP HOUSING RESTRICTIONS AND REVERTER PROVISIONS, OF CERTAIN CITY OF MIAMI ("CITY") OWNED PARCELS OF LAND LOCATED APPROXIMATELY AT 6200 NORTHWEST 17 AVENUE AND 6201 NORTHWEST 17 AVENUE, MIAMI, FLORIDA, LEGALLY DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED, TO SOUTH FLORIDA COMMUNITY LAND TRUST ("SFCLT"), ("DEVELOPER"), A STATE OF FLORIDA NOT-FOR-PROFIT ORGANIZATION, FOR THE DEVELOPMENT OF AFFORDABLE/WORKFORCE RENTAL AND HOMEOWNERSHIP HOUSING IN ACCORDANCE WITH SECTION 29-B(A) OF THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE A SAFE HARBOR LEASE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, FOR A FIFTY (50) YEAR INITIAL TERM WITH UP TO TWO (2) OPTIONS TO RENEW FOR TERMS OF TEN (10) YEARS AND TO NEGOTIATE AND EXECUTE, IN FORM(S) ACCEPTABLE TO THE CITY ATTORNEY AND BOND COUNSEL, ANY AND ALL OTHER NECESSARY DOCUMENTS, FOR SAID PURPOSE TO LEASE THE PARCELS TO THE DEVELOPER AND IN COMPLIANCE WITH THE REQUIREMENTS UNDER THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED. Backaround of Item: On September 25, 2001 and on July 17, 2003 by authorization of Resolution Nos. 01- 1043 and 03-777 respectively, the City acquired the properties located at 6201 NW 17th Avenue, Miami, Florida and 6200 NW 17th Avenue, Miami Florida, (the "Properties") as part of the Model City Home Ownership Zone Pilot Project using Home Investment Partnership Program ("HOME") funds. On May 8, 2003, pursuant to resolution No. 03-479, Miami City Commission authorized the use of approximately $1.8 million in Homeland Defense/Neighborhood Improvement Funds to replace the HOME funds used in the acquisition of lots in Model City which includes an amount of $567,571.37 and $995,905.21 being the purchase price and environmental clean-up for the properties located at 6200 NW 17th Ave and 6201 NW 17th Avenue respectively. Due the cost of the Bonds on the lots which has to be paid back for any private use, developers have been unwilling to accept the properties for affordable housing development and has been vacant since they were purchased more than 15 years ago. An IRS Safe Harbor provides an opportunity for the City to have these vacant lots developed and brought unto the City's tax rolls. BHP Community Land Trust, Inc. dba/South Florida Community Land Trust, Inc., is a Florida not -profit corporation that protects land to keep housing affordable, with a mission to provide and preserve quality, sustainable, affordable housing for underserved populations in South Florida. SFCLT is proposing to develop two buildings, one for rental with 90 units on 6201 NW 17 Avenue and a homeownership project with up to 32 units on 6200 NW 17 Avenue, for a total of 122 permanently affordable rental and homeownership residences. Both projects will be affordable in perpetuity. The City Administration is recommending to lease, with affordable/workforce rental and homeownership housing restrictions and reverter provisions, of certain City of Miami ("City") owned parcels of land located approximately at 6200 Northwest 17 Avenue and 6201 Northwest 17 Avenue, Miami, Florida, as described in "Exhibit "A. The restrictions and reverter provisions contained in the lease instruments shall require the Parcels to revert to the City if (i) the developments are not started within twenty-four (24) months of the date of closing or (ii) if the projects are not completed within forty- eight (48) months as evidenced by a Certificate of Occupancy, which may be amended by the Director of the Department of Housing and Community Development ("Director"), and (iii) the developments are solely rented or sold to low-income/workforce household income households. The parcels shall be for the development of affordable/workforce rental and homeownership housing in accordance with Section 29-13(a) of the Charter of the City of Miami, Florida, as amended ("City Charter"). The City shall require the following in order to lease the Parcels to the Developer: (i) evidence satisfactory to the Director that financial commitments from the lender or lenders have been received, (ii) any mortgages obtained by the Developer on the Parcels will be subject to the approval of the Director, and (iv) the execution of the Safe Harbor Lease Agreement occurs simultaneously with the closing of the construction financing by the lender(s), if any. The parcels shall be lease through an IRS Safe Harbor Lease ("Agreements") and any other necessary documents, all in form(s) acceptable to the City Attorney and Bond Counsel. Budqet Impact Analvsis Item is NOT Related to Revenue Item is an Expenditure Item is NOT funded by Bonds Total Fiscal Impact: N/A Reviewed By Department of Community and Economic Development Review Completed 09/18/2019 12:59 PM Office of Management and Budget Luis Hernandez -Torres Office of Management and Budget Christopher M Rose City Manager's Office Sandra Bridgeman City Manager's Office Nikolas Pascual Legislative Division Valentin J Alvarez Office of the City Attorney Richard Appleton Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez City Commission Nicole Ewan City Commission Maricarmen Lopez Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Office of the City Clerk City Clerk's Office George Mensah Department Head Budget Analyst Review Completed Budget Review Completed Assistant City Manager Review Completed City Manager Review Completed Legislative Division Review Completed ACA Review Completed Deputy City Attorney Review Completed Approved Form and Correctness Completed Meeting Completed Meeting Completed Unsigned by the Mayor Completed Signed and Attested by the City Clerk Completed Rendered Completed 09/20/2019 12:52 PM 09/26/2019 4:49 PM 09/27/2019 11:16 AM 09/27/2019 12:30 PM 10/03/2019 2:53 PM 11/08/2019 6:09 PM 11/11/2019 5:56 PM 11/12/2019 6:00 PM 11/21/2019 9:00 AM 12/12/2019 9:00 AM 12/23/2019 5:40 PM 12/23/2019 5:41 PM 12/23/2019 5:41 PM File Number: 6501 City of Miami Legislation Resolution Enactment Number: R-19-0502 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date:12/12/2019 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AGREEMENTS, INCLUDING BUT NOT LIMITED TO LEASES, PURCHASE AND SALE AGREEMENTS, AND/OR MANAGEMENT AGREEMENTS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY AND BOND COUNSEL, WITH BHP COMMUNITY LAND TRUST, INC. D/B/A SOUTH FLORIDA COMMUNITY LAND TRUST, A STATE OF FLORIDA NOT FOR PROFIT CORPORATION ("SFCLT"), FOR THE DEVELOPMENT OF CERTAIN CITY OF MIAMI ("CITY") OWNED PARCELS OF LAND LOCATED APPROXIMATELY AT 6200 NORTHWEST 17TH AVENUE AND 6201 NORTHWEST 17TH AVENUE, MIAMI, FLORIDA, AS LEGALLY DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED ("PROPERTIES'), AS AFFORDABLE/WORKFORCE RENTAL AND HOMEOWNERSHIP HOUSING, INCLUDING THE SALE OR LEASE OF SUCH PARCELS WITH AFFORDABLE/WORKFORCE HOUSING RESTRICTIONS AND REVERTER PROVISIONS, IF APPLICABLE, ALL IN ACCORDANCE WITH SECTION 29-B(A) OF THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CHARTER"), WHICH MAY BE IN THE FORM OF A GROUND LEASE FOR UP TO A FIFTY-FIVE (55) YEAR INITIAL TERM WITH TWO (2) OPTIONS TO RENEW FOR TERMS OF UP TO TEN (10) YEARS EACH, A TRANSFER OF THE FEE TITLE TO THE PROPERTIES, OR A COMBINATION OF THE FOREGOING, EACH IN ACCORDANCE WITH SECTION 29-B(A) OF THE CITY CHARTER AND ALL SUBJECT TO THE RECEIPT OF THE OPINION OF BOND COUNSEL THAT THE EXECUTION OF SUCH AGREEMENTS AND THE TRANSFER OF THE PROPERTIES AS DESCRIBED SUCH AGREEMENTS WILL NOT, BY ITSELF, AFFECT THE EXCLUSION FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES OF INTEREST ON THE BONDS SUCH AGREEMENTS MAY PROVIDE FOR THE TRANSFER BY SFCLT OF ITS INTEREST IN THE PROPERTIES TO ANOTHER ENTITY, SUCH AS A LIMITED OR GENERAL PARTNERSHIP OR LIMITED LIABILITY COMPANY, PROVIDED SFCLT RETAINS A MAJORITY INTEREST IN THE PARTNERSHIP, GENERAL PARTNER, OR MEMBER MANAGER, AS APPLICABLE; FURTHER PROVIDING THAT WITH RESPECT TO THE HOMEOWNERSHIP PORTION OF THE PLANNED DEVELOPMENT, SFCLT MAY ENTER INTO A GROUND LEASE OR SUB -GROUND LEASE WITH A CONDOMINIUM ASSOCIATION OR ANOTHER ENTITY AS MAY BE OTHERWISE PROVIDED IN THE AGREEMENT(S) TO FACILITATE HOMEOWNERSHIP; FURTHER PROVIDING THAT REGARDLESS OF THE FORM OF THE TRANSFER MECHANISM OF THE PROPERTIES TO SFCLT, ALL SUCH AGREEMENTS SHALL PROVIDE FOR THE CONTINUED RESTRICTION ON THE USE OF THE PROPERTIES FOR AFFORDABLEM/ORKFORCE RENTAL AND HOMEOWNERSHIP HOUSING CONSISTENT WITH SECTION 29-B(A) OF THE CITY CHARTER AND THIS RESOLUTION; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL OTHER NECESSARY DOCUMENTS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY AND BOND COUNSEL, FOR SAID PURPOSE AND IN COMPLIANCE WITH THE REQUIREMENTS UNDER THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, AS NECESSARY TO PRESERVE THE FEDERAL INCOME TAX STATUS OF THE INTEREST ON THE CITY'S BONDS REFERENCED HEREIN. WHEREAS, pursuant to Resolution Nos. 01-1043 and 03-777 adopted on September 25, 2001 and July 17, 2003, respectively, the City of Miami ("City") acquired the properties located at 6201 Northwest 17th Avenue, Miami, Florida and 6200 Northwest 17th Avenue, Miami Florida, as legally described in Exhibit "A," attached and incorporated (collectively, "Properties"), as part of the Model City Home Ownership Zone Pilot Project ("Project") using Home Investment Partnership Program ("HOME") funds; and WHEREAS, pursuant to Resolution No. 03-479 adopted on May 8, 2003, the City Commission authorized the use of approximately $1.8 million of proceeds of the City's Homeland Defense/Neighborhood Capital Improvement Bonds Series 2002 ("Bonds") to replace the HOME funds used in the acquisition of various lots for the Project; and WHEREAS, the aforementioned funds include an amount of $567,571.37 and an amount of $995,905.21, which represent the purchase price and environmental clean-up for the Properties respectively; and WHEREAS, the Properties have remained vacant for over fifteen (15) years due to the unwillingness of developers to accept the Properties for affordable housing development purposes because of the restrictions placed on the use of the BondS allocated to the acquisition of the Properties; and WHEREAS, BHP Community Land Trust, Inc., a Florida not for profit corporation and a 501(c)(3) organization, d/b/a South Florida Community Land Trust ("SFCLT"), protects affordable housing with a mission to provide and preserve quality, sustainable, affordable housing for underserved populations in South Florida; and WHEREAS, SFCLT is proposing to develop two (2) buildings, one (1) for rental with up to ninety (90) units at 6201 Northwest 17th Avenue and a homeownership project with up to thirty-two (32) units at 6200 Northwest 17th Avenue, for a total of up to one hundred twenty-two (122) permanently affordable rental and homeownership residences; and WHEREAS, both projects will be affordable in perpetuity; and WHEREAS, the City's Administration recommends that the City enter into agreements with SFCLT regarding the Properties, subject to confirmation that the terms of such agreements would not affect the tax status of the Bonds; and WHEREAS, any such agreements entered into with SFCLT shall require that SFCLT retain at least a majority ownership (including leasehold ownership) interest in the Properties and that the Properties revert to the City if the developments are not started within twenty-four (24) months of the date of closing; the projects are not completed within forty-eight (48) months as evidenced by a Certificate of Occupancy or Temporary Certificate of Occupancy, as applicable, which requirement may be amended by the Director of the Department of Housing and Community Development ("Director'); and the units in the developments are solely rented or sold to low-income/workforce-income households; and WHEREAS, the Properties shall be for the development of affordable/workforce rental and homeownership housing in accordance with Section 29-B(a) of the Charter of the City of Miami, Florida, as amended ("City Charter'); and WHEREAS, the City shall require evidence satisfactory to the Director that financial commitments from the lender or lenders have been received, any mortgages obtained by the Developer on the Properties will be subject to the approval of the Director, and the execution of the agreements occurs simultaneously with the closing of the construction financing by the lender(s), if any; and WHEREAS, the aforementioned agreements along with any other necessary documents for said purpose shall be in forms acceptable to the City Attorney and Bond Counsel; 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. The City Manager is authorized' to negotiate and execute agreements, including but not limited to leases, purchase and sale agreements, and/or management agreements, all in forms acceptable to the City Attorney and Bond Counsel, with SFCLT for the Properties for the development of affordable/workforce rental and homeownership housing, including the sale or lease of such parcels with affordable/workforce housing restrictions and reverter provisions, if applicable, all in accordance with Section 29-B(a) of the City Charter, which agreements may be in the form of a ground lease for up to a fifty-five (55) year initial term with two (2) options to renew for terms of up to ten (10) years, a transfer of the fee title to the Properties, or a combination of the foregoing, each in accordance with Section 29-B(a) of the City Charter and all subject to the receipt of the opinion of Bond Counsel that the execution of such agreements and the transfer of the Properties as described such agreements will not, by itself, affect the exclusion from gross income for federal income tax purposes of interest on the bonds such agreements may provide for the transfer by SFCLT of its interest in the Properties to another entity, such as a limited or general partnership or limited liability company, provided SFCLT retains a majority interest in the partnership, general partner, or member manager, as applicable; further providing that with respect to the homeownership portion of the planned development, SFCLT may enter into a ground lease or sub -ground lease with a condominium association, or another entity as may be otherwise provided in the agreements, to facilitate homeownership; further providing that regardless of the form of the transfer mechanism of the Properties to SFCLT, all such agreements shall provide for the continued restriction on the use of the Properties for affordable/workforce rental and homeownership housing consistent with Section 29-b(a) of the City Charter and this Resolution. Section 3. The City Manager is further authorized to negotiate and execute any and all other necessary documents, all in forms acceptable to the City Attorney and Bond Counsel, for said purpose and in compliance with the requirements of the United States Internal Revenue Code of 1986, as amended, as necessary to preserve the tax status for federal income tax purposes of interest on the Bonds. ' The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ��-�. 1 i ria i ndez, 'iky Attor ey 11/1212019 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten 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.