2008-26955 ResoRESOLUTION NO. 2008-26955
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AONE-TIME ONLY
ASSIGNMENT OF THE OCTOBER 1, 2007, CDBG AGREEMENT IN THE
AMOUNT OF $160,230 BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), TO MBCDC
MERIDIAN PLACE, LLC, A NOT FOR PROFIT ENTITY CREATED BY
MBCDC (AND WHOSE SOLE MEMBER IS MBCDC) AS A SUCCESSOR
IN INTEREST IN TITLE OF THE MERIDIAN PLACE APARTMENTS,
LOCATED AT 530 MERIDIAN AVENUE.
WHEREAS, the City receives Community Development Block Grant (CDBG)
Program entitlement grants from the U.S. Department of Housing and Urban Development
(HUD); 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, on July 11, 2007, the City Commission approved Resolution 2007-
26585, adopting the One-Year Action Plan for federal funds for Fiscal Year 2007/2008,
allocating $160,230 to the Miami Beach Community Development Corporation (MBCDC) to
render facade renovations for the Meridian Place Apartments; and
WHERAS, MBCDC entered into a CDBG Agreement with the City, dated October 1,
2007, in the amount of $160,230 to secure the funding allocation for the Meridian Place
Apartments facade renovation; and
WHEREAS, MBCDC has subsequently created anot-for-profit entity, MBCDC
Meridian Place, LLC, which is the successor in interest to MBCDC and has assumed all
interests and title to the Meridian Place Apartments; and
WHEREAS, MBCDC is the sole member of MBCDC Meridian Place, LLC; and
WHEREAS, an assignment of the October 1, 2007 Agreement from MBCDC to
MBCDC Meridian Place, LLC will best protect the City since the assignment enables the
City to contract directly with the legal owner of the property in question.
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 cone-time only assignment of the CDBG Agreement
between the City and the Miami Beach Community Development Corporation (MBCDC),
dated October 1, 2007, to MBCDC Meridian Place, LLC, anot-for-profit entity created by
MBCDC (and whose sole member is MBCDC) as a successor in interest in title to the
Meridian Place Apartments, located at 530 Meridian Avenue.
2008-26955
PASSED AND ADOPTED THIS 10th DAY OF December , 2008.
ATTEST:
CITY CLERK
Robert-~Parcher
MA OR
Matti Herrera Bower
T:WGENDA\20081December 10\Consent\Meridian Assignment - RESO ($160,230).doc
APPROVED AS TO
FORM & LANGUAGE
~~& FOR EXECUTION
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution authorizing the assignment of the $160,230 October 1, 2007 CDBG Agreement from MBCDC
to MBCDC Meridian Place, LLC, a not 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
~urvey, affordable housing was a concern for 82% of those surveyed.
Issue:
Shall the October 1, 2007, CDBG Agreement with MBCDC be assigned to MBCDC Meridian Place, LLC, a
not for profit ownership-entity created by MBCDC as successor in interests?
item Summary-rcecommenaation:
On July 11, 2007, the City Commission approved Resolution 2007-26585, adopting the One-Year Action
Plan for federal funds for Fiscal Year 2007/2008, allocating $160,230 to the Miami Beach Community
Development Corporation (MBCDC) to render facade renovations for the Meridian Place Apartments.
MBCDC entered into a CDBG Agreement with the City, dated October 1, 2007, in the amount of $160,230
to secure the funding allocation.
For every project MBCDC develops, a separate ownership entity is created. In the case of the Meridian
Place Apartments, MBCDC Meridian Place, LLC, a Florida not for profit limited liability company, wholly
owned by MBCDC, was created and is the property owner. However, the funding allocation and
subsequent agreement was with MBCDC, a not for profit Florida corporation, which is the sole member of
MBCDC Meridian Place, LLC. Therefore, an assignment of the October 1, 2007, CDBG Agreement from
MBCDC, Inc. to MBCDC Meridian Place, LLC, is necessary to ensure that the City is contracting directly
with the corporate entity ultimately and directly responsible for building and managing the project.
Advisory 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
Sign-Offs:
Department Director As 'stant City Manager City Manager
o~ µMF
m MIAMIBEACH
~i
AGEhIDA ITEM
DATE _ r~
m MIAMIBEACH
City of Miomi Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 10, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AONE-TIME ONLY ASSIGNMENT OF THE
OCTOBER 1, 2007, CDBG AGREEMENT IN THE AMOUNT OF $160,230 BETWEEN
THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC), TO MBCDC MERIDIAN PLACE, LLC, ANOT-FOR-PROFIT ENTITY
CREATED BY MBCDC (AND WHOSE SOLE MEMBER IS MBCDC) AS A SUCCESSOR
IN INTEREST IN TITLE OF THE MERIDIAN PLACE APARTMENTS, LOCATED AT 530
MERIDIAN AVENUE
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
On July 11, 2007, the City Commission approved Resolution 2007-26585, adopting the One-Year
Action Plan for federal funds for Fiscal Year 2007/2008, allocating $160,230 of the year's CDBG
funding to the Miami Beach Community Development Corporation (MBCDC) to render facade
renovation for the Meridian Place Apartments, located at 530 Meridian Avenue. Meridian Place,
located at 530 Meridian Avenue, will provided 34 units of affordable housing to income eligible
elderly, formerly homeless persons. Funding was allocated for rehabilitation of the building.
MBCDC subsequently entered into a CDBG Agreement with the City, dated October 1, 2007, to
secure the $160,230 funding allocation.
For every project MBCDC develops, a separate ownership entity is created. In the case of the
Meridian Place Apartments, MBCDC Meridian Place, 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 Meridian Place, LLC.
Therefore, an assignment of the October 1, 2007, CDBG Agreement from MBCDC, Inc. to MBCDC
Meridian Place, LLC, is necessary to ensure the City is contracting directly with the legal owner of
the property in question.
ANALYSIS
An assignment of the October 1, 2007 Agreement from MBCDC to MBCDC Meridian Place, LLC will
best protect the City since the assignment allows the City to contract directly with the legal owner of
the property in question.
Page 2 of 2
Consent to Assignment $160,230/Meridian Place
CONCLUSION:
The administration recommends that the Mayor and City Commission of the City of Miami Beach,
Florida, authorize aone-time only assignment of the October 1, 2007 CDBG Agreement in the
amount of $160,230 between the City of Miami Beach and Miami Beach Community Development
Corporation, a not for profit corporation, to MBCDC Meridian Place, LLC, a Florida limited liability
company, as successor in interest in title to the Meridian Place Apartments, located at 530
Washington Avenue.
JMG/HF/AP
T:WGENDA\2008\December 10\Consent\Meridian Assignment -MEMO ($160,230).doc