96-22065 RESO
RESOLUTION NO.
96-22065
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE THE
ATTACHED THIRD AMENDMENT TO AGREEMENT,
AMENDING THAT CERTAIN MULTI-FAMILY
REHABILITATION MATCHING GRANT AGREEMENT,
DATED AUGUST 31,1994, PERTAINING TO 221 COLLINS
AVENUE, EXTENDING THE TIME TO COMPLETE THE
REHABILITATION OF THE PROJECT.
WHEREAS, on August 31,1994, the City of Miami Beach entered into that certain
Multi-Family Rehabilitation Matching Grant Agreement (Agreement) with The 221, Inc.
(Owner), pertaining to the rehabilitation of the Owner's property at 221 Collins Avenue,
Miami Beach, Florida (Project); and
WHEREAS, pursuant to the Agreement, the rehabilitation of the Project was due to
be completed no later than nine months after the date of the Agreement; and
WHEREAS, on June 21, 1995 the Mayor and City Commission approved an
Amendment to Agreement which extended the completion date of the project to October
9, 1995 under Resolution Number 95-21605; and
WHEREAS, on September 13, 1995 the Mayor and City Commission approved a
Second Amendment to Agreement which extended the completion date of the project to
April 9, 1996 under Resolution Number 95-21708; and
WHEREAS, due to circumstances beyond the Owner's control, the rehabilitation of
the Project has been further delayed; and
WHEREAS, the successful rehabilitation of this Project will help to ease the
shortage of affordable rental housing in Miami Beach, and the Administration therefore
recommends that the City Commission approve the attached Third Amendment to
Agreement, extending the time for completion of the Project to September 30, 1996.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Clerk
are authorized to execute the attached Third Amendment to Agreement, amending that
certain Multi-Family Rehabilitation Matching Grant Agreement, dated August 31, 1994,
pertaining to the property at 221 Collins Avenue, extending the time for completion of the
rehabilitation of the Project to September 30, 1996.
PASSED and ADOPTED this 17th day of
July
,1996.
ATTEST:
MAYOR
RD~J' p~
ROBERT PARCHER, CITY CLERK
r JF\M APPROVEu
LEGAL D~P~J
By Pi /J1~
2/! d/ J6.__. -
f:IDDHPI$ALL ICHIRESOl221 AM END3. RES
COMMISSION MEMO
JULY 17, 1996
market, and recommends extending the period permitted to complete the rehabilitation project in order to
provide these much-needed additional family rental housing units.
The Administration recommends that the Mayor and City Commission adopt the attached Resolution
authorizing the Mayor and City Clerk to execute the Third Amendment to Agreement, amending that certain
Multi-Family Rehabilitation Matching Grant Agreement dated August 31, 1994.
JGP/.ADC/CAH
CAHIIRES0\221AMND3.MEM
COMMISSION MEMO
JULY 17, 1996
On June 21, 1995 the Mayor and City Commission approved an "Amendment to Agreement", which extended
the completion date of the project to October 9, 1995, this Amendment to Agreement was executed on June
29, 1995. On September 13, 1995, the Mayor and Commission approved a "Second Amendment to
Agreement" by Resolution Number 95-21708, which extended the completion date to April 9, 1996.
The Owner has now contacted the City and requested a further extension of time for the completion of the
project to September 30, 1996.
ANALYSIS:
Carolyn Freveletti is the President of The 221, Incorporated which is the owner of the property located at 221
Collins Avenue. The owner has encountered several situations which have caused the project to fall behind
schedule.
The original request for an extension of time was based on the fact that the owner had suffered three deaths
in her immediate family, requiring her to be out of the City for an extended period_ The Owner was
subsequently hospitalized and underwent emergency surgery during the course of this project as well.
Damage from Tropical Storm "Gordon" also added extra time to the completion of the project.
Since the previous extension was granted by the City, the General Contractor has abandoned the job, and
has refused to complete the construction of the project. The owner was required to refinance another building
she owns to make available sufficient funds to pay the extra costs of completing the project necessitated by
the previous contractor's abandonment of the job prior to completion. Most recently, the vendor of the HV AC
units have diverted units ordered for this building to projects in the Atlanta area in preparation for the Olympic
Games.
The City's original agreement was to provide a Matching Grant in the amount of $82,500 from the federal
Community Development Block Grant (CDBG) Program funds. No additional financial obligation will be
created by this Amendment.
The project is now more than ninety percent (90%) completed. The City has paid out $55,974.06 or 68% of
the total commitment of funds to the owner thus far. Under the City's payment procedures, no funds can be
disbursed unless additional construction work is completed, certified by the project architect, and examined
and approved by a qualified City construction inspector. The City's payments to the Owner are always
reduced by a ten percent (10%) retainage, which is paid out upon issuance of a final Certificate of Completion
by the City's Building Services Division.
CONCLUSION:
The rehabilitation of the 221 Collins Avenue property will provide eleven (11) 2-bedroom apartments, with
affordability restrictions on 51 %, or at least six (6) of the units for a five (5) year period, requiring that the
restricted units may be rented only to persons earning at or below 80% of Median Income. (This Agreement
was approved prior to the City Commission's directive to require only 3 years of affordability.) The only
modification of terms of the Agreement proposed is the extension of the completion date.
The Administration is aware that there is a shortage of two bedroom apartments in the South Beach rental
CITY OF
MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM No.L.j3 ~- 9.l..
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE:
July 17, 1995
FROM:
Jose Garcia_pedrosl
City Manager
A RESOLUTION A HORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO
EXECUTE A THIRD AMENDMENT TO AGREEMENT, AMENDING THAT CERTAIN
MULTI-FAMILY HOUSING REHABILITATION MATCHING GRANT AGREEMENT, DATED
AUGUST 31,1994, PERTAINING TO 221 COLLINS AVENUE; EXTENDING THE TIME TO
COMPLETE THE REHABILITATION OF THE PROJECT.
SUBJECT:
ADMINISTRATION RECOMMENDATION:
The Administration recommends that the Mayor and City Commission adopt the attached Resolution
authorizing the Mayor and City Clerk to execute a Third Amendment to Agreement, amending that certain
Multi-Family Housing Rehabilitation Matching Grant Agreement, dated August 31, 1994. Said Amendment
authorizes an extension of time to complete the rehabilitation project which is currently underway at 221
Collins Avenue, Miami Beach, known as the "221 Collins Apartments".
BACKGROUND:
The City, through the Housing Section of the Economic Development Division, of the Design, Development
and Historic Preservation Services Department administers various federally funded affordable housing
programs. The Multi-Family Housing Rehabilitation Programs provide the financial assistance necessary to
undertake rehabilitation of buildings in order to provide affordable rental housing within the City. The City has
offered this financial assistance for the past fourteen (14) years, resulting in the successful renovation of over
1,100 units of rental housing.
The funds for these programs come directly to the City from the U.S. Department of Housing and Urban
Development (HUD). The guidelines for the programs require that the buildings be maintained in rental use
for at least a three year period after the completion of the rehabilitation.
On June 15, 1994 the Mayor and City Commission approved Resolution #94-21186, authorizing and directing
the Mayor and City Clerk to enter into an Agreement with the owner of the property located at 221 Collins
Avenue. This Multi-Family Housing Rehabilitation Matching Grant Agreement, dated August 31, 1994,
provided a CDBG Subsidy in the amount of $82,500 for the rehabilitation of the property, and provided that
said rehabilitation project must be completed within nine (9) months of the date of the Agreement (June 1,
1995)_ The Project involves reconfiguring and rehabilitating the building to make available eleven (11) two-
bedroom apartments.
AGENDA ITEM
01M
l-Il-Cjf,
DATE
THIRD AMENDMENT TO AGREEMENT
This is the Third Amendment (Amendment), dated as of July 17th, 1996, to that certain
Multi-Family Rehabilitation Matching Grant Agreement (Agreement), a copy of which is
attached hereto as Exhibit "A", entered into on August 31,1994. This Amendment is being
entered into by and between, and the Agreement was entered into by and between, the
City of Miami Beach, Florida, a Florida municipal corporation (City), and The 221, Inc., a
Florida corporation (Owner).
WITNESSETH:
WHEREAS, on August 31, 1994, the City entered into the Agreement with Owner,
pertaining to the rehabilitation of the Owner's property at 221 Collins Avenue, Miami
Beach, Florida (Project); and
WHEREAS, pursuant to the Agreement, the rehabilitation of the Project was due to
be completed no later than nine months after the date of the Agreement; and
WHEREAS, due to circumstances beyond the Owner's control, including
abandonment of the project by the previous General Contractor, and the requirement to
obtain additional financing to offset losses incurred by the Owner resulting from the actions
of the General Contractor, the rehabilitation of the Project has been further delayed; and
WHEREAS, the successful rehabilitation of the Project will help to ease the shortage
of affordable rental housing in Miami Beach.
------------
NOW THEREFORE, in consideration of the mutual promises contained herein, and other
good and valuable consideration, the receipt and adequacy of which is hereby conclusively
acknowledged, the parties hereto agree as follows:
1. ABOVE STATEMENTS.
The above statements are true and correct.
2. EXTENSION OF TIME FOR REHABILITATION OF THE PROJECT.
Owner shall obtain a final Certificate of Completion from the City's Building Services
Division, pertaining to the rehabilitation of the Project, no later than September 30, 1996.
Section 13(a)(ii) of the Agreement is amended and will read as follows:
"diligently pursue construction and timely complete the project
by securing a Final Certificate of Completion no later than
September 30, 1996, or"
3. CONFLICT.
In the event of any conflict between the terms of this Amendment and the
Agreement, the terms of this Amendment shall prevail.
4. GOVERNING LAW.
This Amendment and the Agreement shall be governed by and construed in
accordance with the laws of the State of Florida.
5. PRIOR AGREEMENT.
All other terms and conditions of the Multi-Family Rehabilitation Matching Grant
Agreement, dated August 31, 1994, between the City and the Owner shall remain in full
force and effect.
IN WITNESS WHEREOF, the City and the Owner have caused this Third
Amendment to Agreement to be executed by their duly authorized officers as of the date
first written above.
~obr P<w-~
ROBERT PARCHER, CITY CLERK
FOHM APPRO\r
B LEGA~T..
y /f~ ~_
Date ...JLIdlf~h_.
ATTEST:
The 221, Inc., a Florida corporation
WITNESS:
By:
(!~~
C
Carolyn Fr eletti, President
Date: ,f; f / r J.
F:\ \CH\RES0\221 AMND3 .AGR
2
STATE OF FLORIDA)
) SS:
COUNTY OF DADE )
The foregoing instrument was acknowledged before me, this f r (j day of J"VI- ty ,1996,
by CAROLYN FREVELETTI, President of The 221, Inc. Who is personally known to me
/ er 1-183 produced as
identification and did/did not take an oath.
My Commission Expires:
q{lo(crq
D~ (]~
Name: Difi(f'\c:c. 13~c:.L...,...lth
NOTARY PUBLIC, State of Florida
",';.':i~:'r""", DIANA L. BECKWITH Commission NO Cc."f 3 Z {. 56
~:rh. ,:~ ~ COMMISSION * CC432656 EXPIRES
~'~',9~ April 10, 1999
"''l..iif."t;.lf..'' BONDED THRU TROY FAIN INSURANCE,INC.
STATE OF FLORIDA)
) SS:
COUNTY OF DADE )
The foregoing instrument was acknowledged before me, this J:5' day of ~
1996, by Seymour Gelber, as Mayor of the City of Miami Beach. Who is personally known
to me, and did not take an oath.
My Commission Expires:
l~uAu.ud~
Name: ;".//1//1-11/ ''BeQ v(!hQup
NOTARY PUBLIC, State of Florida
Commission NO ("(, 3y? "8 ~2--
OFFlCiAL\iOT ;\PY sl,:;,x:----l
LlLLlAN BEAUCHN.1!' I
NOTARY PUBLiC STATE OF 1'1 OR1D/',
COMMISSION NO. CC347ilR2 J'
MY COMMISSION EXP. FF.B 13,1998
3