2008-26932 Reso Inc.RESOLUTION NO. 2008-26932
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AONE-TIME ONLY
ASSIGNMENT OF THE CDBG AGREEMENT BETWEEN THE CITY AND
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC),
DATED OCTOBER 1, 2008, TO MBCDC: THE ALLEN, LLC, A
NOT-FOR-PROFIT ENTITY CREATED BY MBCDC (AND WHOSE SOLE
MEMBER IS MBCDC) AS A SUCCESSOR IN INTEREST IN TITLE OF THE
ALLEN APARTMENTS, LOCATED AT 2001 WASHINGTON AVENUE.
WHEREAS, the City received an entitlement grant from the U.S. Department of
Housing and Urban Development (HUD) as part of its Community Development Block
Grant (CDBG) Program, for the period of October 1, 2008, to September 30, 2009
(hereinafter "the contract period"); and
WHEREAS, the primary objective of the CDBG Program is the development of
viable urban communities, including decent housing and a suitable living environment and
expanding economic opportunities principally for persons of low and moderate income; and
WHEREAS, the City has determined, through its One-Year Action Plan for federal
funds for Fiscal Year 2008/2009, the necessity for preserving and rehabilitating affordable
rental housing, including older housing stock; and
WHEREAS, the City published a Request for Proposals (RFP) for the federal funds
on February 12, 2008; and
WHEREAS, in response to the City's RFP, MBCDC submitted a proposal, in the
amount of $200,000, for fagade renovation of the Allen Apartments, located at 2001
Washington Avenue; and
WHEREAS, on June 3, 2008, the City accepted the recommendation of the
Community Development Advisory Committee (CDAC) to fund MBCDC to undertake the
fagade renovation at the Allen Apartments, in the amount of $159,684; and
WHEREAS, MBCDC entered into a CDBG Agreement with the City, dated October
1, 2008, to fund the fagade renovation of the Allen Apartments, in the amount of $159,684;
and
WHEREAS, MBCDC has subsequently created anot-for-profit entity, MBCDC: The
Allen, LLC, which is the successor in interest to MBCDC and has assumed all interests and
title to the Allen Apartments; and
WHEREAS, MBCDC is the sole member of MBCDC: The Allen, LLC.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve aone-time only assignment of the CDBG Agreement
between the City and the Miami Beach Community Development Corporation (MBCDC),
dated October 1, 2008, to MBCDC: The Allen, LLC, anot-for-profit entity created by
MBCDC (and whose sole member is MBCDC) as a successor in interest in title to the Allen
Apartments, located at 2001 Washington Avenue.
PASSED AND ADOPTED THIS 5th
DAY OF November ~ 2008
ATTEST:
~~~ ~~~,.
CITY CLERK
Robert Parcher
AY
Matti Herrera Bower
APPROVED AS TO
FORM $ LANGUAGE
e~ FOR EXECUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution authoritizing the assignment of the CDBG Agreement from MBCDC to MBCDC: The Allen
LLC anot-for-profit entity created by MBCDC.
Key Intended Outcome Supported:
Increase access to workforce or affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2007 Customer Satisfaction
Survey, affordable housing was a concern for 82% of those surveyed.
Issue:
Shall the October 1, 2008 Agreement with MBCDC be assigned to MBCDC: The Allen, LLC, a not for profit
ownership-entity created by MBCDC as successor in interests?
Item Summary/Recommendation:
Miami Beach Community Development Corporation (MBCDC) was awarded CDBG funding for FY 2008/09
in the amount of $159,684 for facade renovations at The Allen Apartments, located at 2001 Washington
Avenue.
For every project MBCDC develops, a separate ownership entity is created. In the case of the Allen
Apartments, MBCDC: The Allen, LLC, a Florida not-for-profit limited liability company, wholly owned by
MBCDC, was created and is the property owner. However, the funding allocation was awarded to MBCDC,
a not-for-profit Florida corporation, which is the sole member of MBCDC: The Allen, LLC. Therefore, an
assignment of the October 1, 2008, CDBG Agreement from MBCDC, Inc. to MBCDC: The Allen, LLC, is
necessary.
In order for the CDBG funding to go to the ownership entity, an assignment of the Agreement from MBCDC
to MBCDC: The Allen, LLC. is required. The assignment is necessary to ensure that the City is
contracting directly with the corporate entity ultimately and directly responsible for building and managing
the project.
Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 N/A
2
3
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Anna Parekh
AGENDA ITEM C 7~
N~IAJ`~1I BEACH DATE ,~^~-o~
m MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www miamibeachfl.aov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: November 5, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK TO
EXECUTE AONE-TIME ONLY ASSIGNMENT OF THE OCTOBER 1, 2008, CDBG
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC) TO MBCDC: THE ALLEN,
LLC, ANOT-FOR-PROFIT ENTITY CREATED BY MBCDC AS A SUCCESSOR IN
INTEREST IN TITLE TO THE ALLEN APARTMENTS PROPERTY, LOCATED AT 2001
WASHINGTON AVENUE, AND UNDER THIS AGREEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
BACKGROUND
On July 16, 2008 the City of Miami Beach adopted its One-Year Action Plan for federal funds,
including Community Development Block Grant funds. Among the priorities of the Action Plan was
the preservation of affordable housing and of older housing stock. The City of Miami Beach
published a Request for Proposals (RFP) for the federal funds on February 12, 2008; Miami Beach
Development Corporation (MBCDC), a Florida not-for-profit corporation, submitted an application
through the City's RFP process, proposing to renovate the facade of The Allen Apartments, located
at 2001 Washington Avenue.
On June 3, 2008, the City adopted the recommendation of the Community Development Advisory
Committee (CDAC) to fund MBCDC to undertake the facade renovation in the amount of $159,684.
On October 1, 2008, the City of Miami Beach entered into an agreement with MBCDC for use of
CDCB funds in the amount of $159,684 for the purpose of renovating the facade of The Allen.
For every project MBCDC develops, a separate ownership entity is created. In the case of The Allen
Apartments, MBCDC: The Allen, LLC, a Florida not for profit limited liability company, was created
to own the property. However, funding allocations were awarded to MBCDC, a not for profit Florida
corporation, which is the sole member of MBCDC: The Allen, LLC. Therefore, an assignment of the
October 1, 2008, CDBG Agreement from MBCDC, Inc. to MBCDC: The Allen, LLC, is necessary to
ensure the City is contracting directly with the legal owner of the property in question.
ANALYSIS
In order for the CDBG funding to go to the ownership entity, an assignment is needed of the
Agreement from MBCDC to MBCDC: The Allen, LLC. The assignment is necessary to best protect
the City by contracting directly with the legal owner of the property in question.
Page 2 of 2
Consent to Assignment The Allen
CONCLUSION:
The administration recommends that the Mayor and City Commission of the City of Miami Beach,
Florida, authorize cone-time only assignment of the October 1, 2008 CDBG Agreement between
the City of Miami Beach and Miami Beach Community Development Corporation, a not for profit
corporation, to MBCDC: The Allen, LLC, a Florida limited liability company, as successor in interest
in title to The Allen Apartments property, located at 2001 Washington Avenue, Miami Beach.
JMG/HF/AP
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