2008-26956 ResoRESOLUTION NO. 2008-26956
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, 2008, CDBG AGREEMENT IN THE
AMOUNT OF $69,894 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 June 16, 2008, the City Commission approved Resolution No. 2008-
26852 amending the One-Year Action Plans for Federal Funds for FY 2002-03, 2003-04,
2005-06, 2006-07, and 2007-08 to reprogram CDBG funds in the amount of $69,894 to
MBCDC for renovations to the Meridian Place Apartments; and
WHERAS, MBCDC entered into a CDBG Agreement with the City, dated October 1,
2008 in the amount of $69,894 to secure the funding allocation for the Meridian Place
Apartments renovation; and
WHEREAS, MBCDC has subsequently created a not 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, 2008 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 aone-time only assignment of the October 1, 2008 CDBG
Agreement in the amount of $69,894 between the City and the Miami Beach Community
Development Corporation (MBCDC), dated October 1, 2008, 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.
2008-26956
PASSED AND ADOPTED THIS 10th DAY OF December , 2008.
ATTEST:
CITY CLERK
Robert Parcher
Matti Herrera Bower
T:WGENDA\2008\December 10\Consent\Meridian Assignment - RESO ($69,894).doc
APPROVED AS TO
FORM & LANGUAGE
8t; FOR.EXHCUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution authorizing the assignment of the $69,894, October 1, 2008 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, 2008, CDBG Agreementwith MBCDC be assigned to MBCDC Meridian Place, LLC, a
not for profit ownership-entity created by MBCDC as successor in interests?
Item Summary/Recommendation:
On June 16, 2008, the City Commission approved Resolution No. 2008-26852 amending the One-Year
Action Plan for Federal Funds for FY 2002-03, 2003-04, 2005-06, 2006-07, and 2007-08 to reprogram
CDBG funds in the amount of $69,894 to MBCDC for renovations to the Meridian Place Apartments.
MBCDC entered into a CDBG Agreement with the City, dated October 1, 2008, in the amount of $69,894 to
secure this 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 between the City and MBCDC, a not for profit Florida corporation, which is the
sole member of MBCDC Meridian Place, LLC. Therefore, an assignment of the October 1, 2008, 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
~ ~ Department Director ~ Assistant City Manager ~ City Manager ~
AGEIVaA ITEM
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m MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www miomibeachfl.aov
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 A D THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AONE-TIME ONLY ASSIGNMENT OF THE
OCTOBER 1, 2008, CDBG AGREEMENT IN THE AMOUNT OF $69,894 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.
BACKGROUND
On June 16, 2008, the City Commission approved Resolution No. 2008-26852 amending the One-
YearAction Plans for Federal Funds for FY 2002-03, 2003-04, 2005-06, 2006-07, and 2007-08 to
reprogram CDBG funds in the amount of $69,894 to Miami Beach Community Development
Corporation (MBCDC) for renovations to the Meridian Place Apartments. 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 consequently
entered into a CDBG Agreement with the City, dated October 1, 2008, to secure the $69,684
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, 2008, 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, 2008 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 $69, 894 /Meridian Place
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 in the
amount of $69,684 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 property, located at 530
Washington Avenue, Miami Beach.
JMG/HF/AP
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