558-2008 RDA ResoRESOLUTION NO. 558-2008
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY (RDA) APPROVING AND
AUTHORIZING THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO
TAKE SUCH ACTIONS AND PREPARE SUCH DOCUMENTS, AS
NECESSARY, EXTENDING THE "AFFORDABILITY PERIOD" FOR
THE BARCLAY, A PROPOSED AFFORDABLE HOUSING PROJECT
WITHIN THE CITY CENTER/HISTORIC CONVENTION VILLAGE
REDEVELOPMENT AREA, LOCATED AT 1940 PARK AVENUE,
MIAMI BEACH, FLORIDA, AND OWNED AND TO
BE REHABILITATED AND OPERATED BY MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC) FOR SUCH
PURPOSES; SAID EXTENSION REQUIRING MBCDC TO OPERATE
AND MAINTAIN THE PROPERTY FOR AFFORDABLE HOUSING
PURPOSES FROM THE CURRENT MINIMUM OF THIRTY(30) YEARS,
TO FIFTY (50) YEARS; FURTHER AUTHORIZING THE CHAIRMAN
AND SECRETARY TO EXECUTE ANY AND ALL SUCH DOCUMENTS
MEMORIALIZING THE EXTENSION OF THE AFFORDABILITY
PERIOD, SUBJECT TO FINAL REVIEW OF THE EXECUTIVE
DIRECTOR AND RDA GENERAL COUNSEL.
WHEREAS, on March 14, 2007, the RDA adopted a Resolution No. 545-2007,
authorizing an appropriation of $13,650,000 from City Center/Historic Convention Village
(City Center) Redevelopment Agency non-TIF funding sources, to MBCDC, for the
purpose of providing funds to MBCDC for the balance due in connection with its purchase
of the following three properties located within the City Center RDA: 1940 Park Avenue
(The Barclay); 1965-1975 Washington Avenue (The London House); and 2001
Washington Avenue (The Allen House), (hereinafter referred to as "the Properties"); and
WHEREAS, Resolution No. 545-2007 further approved the terms and conditions
for a Loan Agreement between the RDA and MBCDC governing the use of all funding
appropriated in connection with the purchase of the Properties, which are to be restored,
renovated, operated and maintained by MBCDC for the express purpose of i) preserving
these historic structures within the City Center RDA, and ii) maintaining a designated
number of rehabilitated/renovated units within the properties as affordable housing for low
to moderate income individuals, (as provided for in, and conformance with the provisions of
the City Center/Historic Convention Village Redevelopment and Revitalization Area Plan);
and
WHEREAS, since the acquisition of the Properties, MBCDC has been diligently
conducting a phased renovation of the Properties; and
WHEREAS, as part of its efforts to secure additional funding for the projects,
MBCDC is the process of submitting an application to the State of Florida for a Special
Needs Housing Grant in the amount of $3 Million for the renovation of the Barclay (the
Grant Program) ;and
WHEREAS, due to the competitive nature of the Grant Program, it is essential that
MBCDC qualifies for as many points that can 'be awarded for meeting the Program's
selection criteria; and
WHEREAS, among these provisions is a requirement for the Project to have an
affordability period or term of at least thirty (30) years; and
WHEREAS, projects that have an affordability period of up to fifty years stand to
score an additional twenty points on the application; and
WHEREAS, the Loan Agreement and Restrictive Covenant between the City and
MBCDC governing the Barclay, provides for an affordability period/term of thirty (30)
years, which meets the basic threshold criteria in the Grant application; and
WHEREAS, since the Covenant allows for an extension of the affordability period
at the sole option and discretion of the RDA, the Administration recommends amending
the Loan Agreement. and Covenant, extending the term to fifty (50) years, which will
significantly improve MBCDC's chances of being awarded the Grant.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE REDEVELOPMENT AGENCY OF THE CITY OF MIAMI BEACH,
FLORIDA, that the Chairperson and Members of the RDA hereby approve and authorize
the Executive Director or his designee to take such actions and prepare such documents
as necessary, extending the "Affordability Period" for the Barclay, a proposed affordable
housing project within the City Center/Historic Convention Village Redevelopment Area,
located at 1940 Park Avenue, Miami Beach, Florida, and owned and to be rehabilitated
and operated by Miami Beach Community Development Corporation (MBCDC), for such
purposes; said extension requiring MBCDC to operate and maintain the property for
affordable housing purposes from the current minimum of thirty (30) years, to fifty (50)
years; further authorizing the Chairman and Secretary to execute any and all such
documents memorializing the extension of the affordability period, subject to final review of
the Executive Director and RDA General Counsel.
PASSED and ADOPTED this 25th day of June, 2008
ATTEST:
SECRETA Y Robert Parcher CHAT A Matti Herrera Bower
T:IAGENDA12008WUNE 251RDA1BARCLAY LOAN AMENDMENT RESO.DOC
APPROVED AS TO
FORM 8~ LANGUAGE
~ FUR'EXECUTION
~ 16 D~'
n Dats
General Counsel
MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution authorizing the Executive Director or his designee to take such actions as necessary to extend the
affordability period for the Barclay, a proposed affordable housing project in the City Center RDA, owned and operated by
Miami Beach Community Development Corporation (MBCDC), to be rehabilitated for such purposes; said extension
requiring MBCDC to operate and maintain the Barclay for affordable housing purposes from the current minimum of thirty
(30) years to fifty (50) years; further authorizing the Chairperson and Secretary to execute any and all documents
memorializin the extension of the affordabili eriod.
Key Intended outcome 5upportea:
Ensure Well Maintained Facilities
Supporting Data (Surveys, Environmental Scan, etc.):
Fifty-one percent of residents in the Community Satisfaction Survey (2007) ranked housing for households earning less than
$80,000 as something the City should most ensure. Housing for elderly/seniors ranked as the second highest type of
.housing the City should most ensure (26% of respondents). In addition, retention of rental units was cited by 7% of the
'respondents as something the City should ensure.
Issue:
Shall the RDA authorize an extension of the affordability period for the Barclay from thirty (30) to fifty (50) years?
Item Summa /Recommendation:
Since the acquisition of the three rental apartment properties in the City Center RDA, MBCDC has (in accordance with the
Loan Agreements between the RDA and MBCDC), been conducting a phased renovation of the buildings, which to date
has included interior upgrades in the Barclay; replacing the roofs on both the Allen House and the Barclay; engaging an
architectural firm to reconfigure the London House; and, commencing the renovation of the Allen House in order to
relocate tenants from the Villa Maria, (a multi-family rental property owned by MBCDC, which is set to undergo a major
renovation as elderly housing).
As part of its efforts to secure additional funding for the projects, MBCDC is in the process of submitting an application to
the State of Florida for a Special Needs Housing Grant in the amount of $3 Million for the renovation of the Barclay. Due to
the competitive nature of the Grant Program, it is essential that MBCDC qualifies for as many points that can be awarded
for meeting the Program's selection criteria. Among these provisions is a requirement for the project to have an
affordability period or term of at least thirty years. Projects that have an affordability period of up to fifty years stand to score
an additional twenty points on the application.
The Loan Agreement and Restrictive Covenant between the City and MBCDC governing the Barclay, provides for an
affordability period/term of thirty years, which meets the basic threshold criteria in the Grant application. Since the
Covenant allows for an extension of the affordability period at the sole option and discretion of the RDA, the Administration
recommends amending the Loan Agreement and Covenant, extending the term to fifty years, which will significantly improve
MBCDC's chances of bein awarded the Grant.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds: ~
OBPI .Total
Financial Im act Summa N/A
Ci Clerk's Office Le islative Trackin
Kent O Bonde, Redevelo ment Coordinator Ext 6363
Sign-Offs:
n~
RDA Coordinator A is nt ity Hager City Manager
KOB JMG
f:WGENDA\2008Uune 25\RDA\Barclay Loan Amen~ent Summary.doc Q
m MIAMIBEACH
0~
AGEtdDA ITEM a ~~
DATE 6 o?s-o8
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,
www.miamibeachfl.aov
REDEVELOPMENT AGENCY MEMORANDUM
To: Chairperson and Members of the Miami Beach Redevelopment Agency
FROM: Jorge M. Gonzalez, Executive Director
DATE: June 25, 2008
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, (RDA) APPROVING AND AUTHORIZING
THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO TAKE SUCH ACTIONS
AND PREPARE SUCH DOCUMENTS, AS NECESSARY, EXTENDING THE
"AFFORDABILITY PERIOD" FOR THE BARCLAY, A PROPOSED AFFORDABLE
HOUSING PROJECT WITHIN THE CITY CENTER/HISTORIC CONVENTION
VILLAGE REDEVELOPMENT AREA, LOCATED AT 1940 PARK AVENUE,
MIAMI BEACH, FLORIDA, AND OWNED AND TO BE REHABILITATED AND
OPERATED BY MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC) FOR SUCH PURPOSES; SAID EXTENSION REQUIRING MBCDC TO
OPERATE AND MAINTAIN THE PROPERTY FOR AFFORDABLE HOUSING
PURPOSES FROM THE CURRENT MINIMUM OF THIRTY(30) YEARS, TO FIFTY
(50) YEARS; FURTHER AUTHORIZING THE CHAIRPERSON AND SECRETARY
TO EXECUTE ANY AND ALL SUCH DOCUMENTS MEMORIALIZING THE
EXTENSION OF THE AFFORDABILITY PERIOD, SUBJECT TO FINAL REVIEW
OF THE EXECUTIVE DIRECTOR AND RDA GENERAL COUNSEL.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
BACKGROUND
On March 14, 2007, the RDA adopted a Resolution authorizing an appropriation of
$13,650,000 from City Center/Historic Convention Village (City Center) Redevelopment
Agency non-TIF funding sources, to MBCDC, for the purpose of providing funds to MBCDC
for the balance due in connection with its purchase of the following three properties located
within the City Center RDA: 1940 Park Avenue (The Barclay); 1965-1975 Washington
Avenue (The London House); and 2001 Washington Avenue (The Allen House),
(hereinafter referred to as "the Properties"). From this same appropriation, a total of
$341,593 was allocated towards offsetting the carrying costs of the Properties for a period of
one year, or until such time that MBCDC was able to secure additional funding to carry and
begin renovating the Properties. The Resolution further approved the terms and conditions
for a Loan Agreement between the RDA and MBCDC, governing the use of all funding
appropriated in connection with the purchase of the properties, which are to be restored,
renovated, operated and maintained by MBCDC for the express purpose of i) preserving
these historic structures within the City Center RDA, and ii) maintaining a designated
number of rehabilitated/renovated units within the Properties as affordable housing for low
to moderate income individuals, as provided for in, and conformance with the provisions of
the City Center/Historic Convention Village Redevelopment and Revitalization Area Plan.
Miami Beach Redevelopment Agency Memorandum
June 25, 2008
Allen House Loan Application -Subordination consent requirement
Page 2 of 2
ANALYSIS
Since the acquisition of the Properties, MBCDC has been diligently conducting a phased
renovation of the buildings, which to date has included painting and installing new carpeting
and appliances in the Barclay; replacing the roofs on both the Allen House and the Barclay;
engaging an architectural firm to reconfigure the London House, to include the addition of
a third floor; and commencing the renovation of the Allen House in order to relocate
tenants from the Villa Maria, (a multi-family rental property owned by MBCDC, which is set
to undergo a major renovation as elderly housing).
As part of its efforts to secure additional funding for the projects, MBCDC is in the process of
submitting an application to the State of Florida for a Special Needs Housing Grant in the
amount of $3 Million for the renovation of the Barclay. Due to the competitive nature of the
Grant Program, it is essential that MBCDC qualifies for as many points that can be awarded
for meeting the Program's selection criteria. Among these provisions is a requirement for
the project to have an affordability period or term of at least thirty years. Projects that have
an affordability period of up to fifty years stand to score an additional twenty points on the
application.
The Loan Agreement and Restrictive Covenant between the City and MBCDC governing the
Barclay, provides for an affordability period/term of thirty years, which meets the basic
threshold criteria in the Grant application. Since the Covenant allows for an extension of the
affordability period at the sole option and discretion of the RDA, the Administration
recommends amending the Loan Agreement and Covenant, extending the term to fifty
years, which will significantly improve MBCDC's chances of being awarded the Grant.
JMG/HF/TH/KOB
Attachment:
- Letter from MBCDC dated May 9, 2008 requesting extension of the affordability period.
T:Wgenda~2008Uune 25~RDA~Barclay Loan Doc Amendment Mem.doc
:i ~:
~i Y ~'~
C3uitding and Sustaining Community -- Unique, Vibrant, f7iverse
May 9, 2008
Jorge Gonzalez, City Manager
City of Miami Beach
1700 Convention Center
Miami Beach FL 33139
Re: The Barclay Apartments.
Dear Jorge:
We are getting ready to submit an application for $3,000,000 to the State of Florida Special
Needs Housing grant program for the rehabilitation of the above project. As you know, these
programs are very competitive and for us to compete we have to accumulate as much points as
possible. This grant application requires at least a 30 year affordability period to meet threshold,
and can receive an additiona120 points if the period is extended #0 50 years.
The existing covenant that the City has on The Barclay reads in paragraph 3 reads:
`.
(iii) (a) Extend the Loan Agreement of the Affordability period fof• an additional ter~rr, with such term to
be determined in the sole judgment and discretion of the RDA; or
(h) Regr~ire O-vner, automatically and ivithorrt further action regrrifed by the RDA , to promptly, on
written demand execute and deliver a Special Warranty Deed (sr~bject to no liens or encumbrances
created by through or under Owner), conveying good and marketable fee simple title in the premises to
the RDA. Owner shall be responsible for the cost of documentary stamps, and/or other tax(es) imposed
as a resr~lt of the conveyance corttenrplated by this subsection (ii) (b). (See attached copy of covenant)
The State has argued, in the past that these provision does not allow MBCDC to guarantee an
affordability period exceeding the covenant and thus MBCDc could not score the additional
points, moreover, approximately two years have elapsed since the beginning of the covenant and
MBCDC could not even meet threshold of 30 years requirement.
This letter to request an amendment of these requirements to allow MBCDC an affordability
period of 55 years providing that MBCDC keeps the uiuts affordable during that time, and if the
RDA should take possession of the property it would abide by the affordability period.
Sincerel ,
Roe e
President
MtAMt BEACH C(~MMUNiTY ~EVELC)PMENT CC)RPC~RATI~N
945 Pennsylvonio Ave. • Miami beach, Florida 33139 • Phone 305 538-0090 • Fax 305 538-2863
G. Development Cost Pro Forma -Complete the attached detailed development cost pro
forma (Exhibit 5} describing the cost of the Development, including detailed sources
and uses of funds. Total Development Cost must be clearly indicated. If the
Development will consist of Substantial Rehabilitation, provide a complete
description of any proposed renovations and the cost projections of such
rehabilitation. Threshold
H. ~ Need and Demand
Provide needs assessment that demonsb•ates the need for the proposed type of housing
in the specific market area and for the demographic group the Applicant proposes to
serve. The intent of this section is to ensure that the Applicant will employ a
comprehensive and adequate process to research, identify and assess anticipated
supportive services and housing needs of the selected demographic group. Evidence
of contact with local, public and private community based resources and
organizations, as well as churches, businesses, local government housing offices,
public housing agencies and other affordable housing developments may be necessary
in order to determine the needs specific to potential residents. The Applicant is
encouraged to research additional sources to complete the needs assessment section
such as census information, state agency annual reports, and local government
comprehensive or related plans. Input based on the Applicant's prior experience in
designing services for the selected population is also valuable.
Need and demand will be verified by a certified third party market study during credit
underwriting. Threshold
I. Evidence of Site Control
Provide evidence of site control such as a recorded deed, an op#ion contract, a land
lease with a terns of 3Q.ye~rs or the Affordabili .Period committed to in Section Four
D. of this RFP, whichever is greate~•, or a sales contract which does not expire before
December 3l, 2008. Tie-Breaker.
J. Threshold Items and Exhibits
All threshold items identified in Section Four and Six and the attached exhibits of this
RFP must be provided to be considered for funding. Please refer to Section Six of
this RFP for details regarding the cure period.
-15-
Florida Housing's RFP 2008-01 Published April 11, 2008
- Experience of the Applicant must be demonstrated.
- Development description as outlined in Section Four A.3 of this RFP mast be provided.
- Applicant must commit to at least 25% of the total units or beds for ELT households.
-Applicant must commit to all applicable minimum set-asides as outlined in Section Four, paragraph
C.2.
- Applicant must maintain the set aside units at the AMI levels committed to in this RFP for a
minimum of 30 years.
- All financing commitments must be considered f rm. Total sources must equal or exceed uses.
- Applicant must complete the development cost pro forma (Exhibit 5) as outlined in Section Four,
paragraph G.
- Evidence of need and demand as outlined in Section Four, paragraph H, must be demonstrated.
- Applicant must include the Certification Statement bearing an original signature.
Eligible Proposals that meet Threshold will be scored on the follawing items:
- Construction Features & Amenities: Up to 20 points
- Resident Services Up to 20 points
- Community Services Up to IO points
-Additional ELI set-aside units: 5 points
- Affordability Period for Developments: Up to 20 points
Tie-breakers will be applied to Proposals with tied scores in the following order, as necessary for
making tentative funding selections: ~•
1) Preference will be given to Applicants that can demonstrate site control in Section Four, I. of this
RFP.
2) Preference will be given to the Proposal requesting the lower amount of SAIL fiords as a
percentage of Total Development Cost as shotivn on the development cost pro forma.
3) Preference will be given to the Applicant with the lowest lottery number. Each Development will
receive a lottery number at or prior to the issuance of final scores. Lottery numbers will be
assigned by Florida Housing's internal auditors using a random number generator program. The
seed number to be used in generating the random numbers will be selected prior to the submission
deadline for this RFP.
Applicants will compete for $13 tniilion in funds. in order for a Proposal to be considered for
tentative funding, there must be sufficient funds available to fund at least 75% of the Applicant's
request amount (the Request Limit Test). If a Proposal does not pass the Request Litnit Test, the
Proposal will not be selected for funding. In this event, the next highest ranked Proposal that can
pass the Request Limit Test will be selected for tentative funding. In the event there are no eligible
Proposals that can pass the Request Limit Test, the funds tivill be distributed as the Board deems
appropriate.
Preliminary Scores
Preliminary scores issued by the Review Committee will be posted on the Website by no later than
5:00 p.m. Eastern Time, Wednesday, June i 8, 2008.
-18-
FloridaHousing's RFP 2008-01 Published April 1 I, 2008