Amendment No. 2 to NSP1
AMENDMENT NO. 2
TO
NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1) AGREEMENT, DATED
JANUARY 27, 2010, BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION
THIS AMENDMENT NO. 2 TO NSP1 AGREEMENT entered into this 30t" day of
March, 2010, by and between the CITY OF MIAMI BEACH, FLORIDA, a municipal
corporation having its principal office at 1700 Convention Center Drive, Miami Beach,
Florida, 33139 (City), and MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION, a Florida not for profit development corporation having its principal
office at 945 Pennsylvania Avenue, Miami Beach, Florida, 33139 (MBCDC or
Developer).
RECITALS:
WHEREAS, on July 31, 2009, pursuant to the City's application for same
authorized under Resolution No. 2009-27039, the City was awarded a grant under the
NSP1 Program, in the amount of $2, 549, 551, and ,accordingly, on November 24,
2009, the City entered into an NSP1 Grant Agreement with the State of <Florida
Department of Community Affairs (DCA); and
WHEREAS, as authorized pursuant to Resolution No. 2009-27194, the City
entered into an NSP1 Agreement with Developer (as the sole responsive proposer
pursuant to a City issued Request for Proposals for potential NSP1 funded projects),
dated January 27, 2010, in the amount of $2,376,181.53, for funding related to
Developer's acquisition and rehabilitation of a sixteen. (16) unit residential property
located at 7871 Crespi Boulevard, Miami Beach, Florida (the Crespi Project), with any
remaining funds to be utilized for the "Secondary Objective Project-Home Ownership
Activities;" and
WHEREAS, on February 3, 2010, pursuant to Resolution No. 2010-27348, the
City was authorized to enter into and execute Amendment No. 1 to the NSP1 Agreement
with Developer, approving a transfer in the ownership of the Crespi Project from
MBCDC, to MBCDC: Madeleine Village, LLC, a Florida limited liability corporation whose
sole member and agent is MBCDC; and
WHEREAS, on March 24, 2010, the City was awarded an additional allocation of
NSP1 funds, in the amount of $4,755,717, and, accordingly, executed Modification No. 1
to the 11/24/09 NSP1 Grant Agreement. with DCA; and
WHEREAS, on March 6, 2010, Developer entered into a contract for the
..purchase of the Neptune Apartments, a 35 unit residential property located at 1632
Meridian Avenue, Miami Beach, Florida (the Neptune Project); and
WHEREAS, in order to bridge the gap between the available NSP1 funding
($4,755,717) and the purchase price for the Neptune Apartments ($5,657,850),
Developer identified the following additional funding: 1.) $700,000, to be secured by
Developer through a private lender, International Finance .Bank; 2.) a transfer of unused
funds from. the Crespi Project, in the amount of $246,898.53; and 3.) $650,000 from City
HOME Community Housing Development Organization funds for FY 2009-2010; and
WHEREAS, accordingly, City and' Developer have negotiated the following
Amendment No. 2 to Developer's NSP1 Agreement, to .identify and include the Neptune -
Project, and to identify the additional NSP1 funding being allocated for said Project, in
the .amount of $4,679,226.78.
'. NOW THEREFORE, in consideration of the mutual promises contained herein,
City and Developer hereby amend that certain NSP1 Agreement, dated January 27,
. 2010, as follows:
1. The above recitals are deemed true and correct and incorporated by reference
hereto.
2., Section 2 (page 2) of the NSP1 Agreement is amended to include the following:
The Neptune Project (Primary Objective)-Rental Housing Activity
Purchase and rehabilitation of a three (3) story residential .apartment building
containing 35 units and located at 1632 Meridian Avenue, Miami Beach, Florida.
- 3. The NSP1 .Agreement is also amended to incorporate Exhibit 1 to this
Amendment No, 2, entitled "The Neptune Apartments Pro-forma, dated February
- 19, 2010;" which Exhibit 1 is incorporated and attached to this Amendment No. 2.
4. Section 3 (page 2) of the NSP1 Agreement is amended to include the following.:
Additional Funds: Subject to availability of funds, and subject further to the
terms and conditions of the Agreement, the City shall allocate funding _to
Developer for the Neptune Project, in the amount of $4,679,226.78 (hereinafter,
the "Additional Funds").
5. All other terms and conditions of the NSP1 Agreement (as amended) shall
remain unchanged and in full. force and effect.
[REMAINDER OF THIS .PAGE LEFT INTENTIONALLY BLANK]
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IN WITNESS WHEREOF, the parties. have executed this Amendment No. 2 to NSP1
Agreement as of the date first written above.
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATLON
a Florida not-for-profit corporation
Roberto Datorre
President, Authorized Signatory
CITY OF MIAMI BEACH
a Florida Municipal Corporation
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M t i e rera-dower, Mayor
APPROVED AS TO
FORM & LANGUAGE
2$ FOR EXECUTIGON
City Attarne
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. AMENDMENT NO. 1 ~ ,
TO
NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1) AGREEMENT,
TED JANUARY 27, 2010, BETWEEN CITY OF MIAMI BEACH, FLORIDA, AND
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
THIS AMENDM T No. 1 to the NEIGHBORHOOD STABILIZATION PROGRAM 1
AGREEMENT {NSP1 AGR MENT) entered into this ~hday of 1~14Y-Ch 2010, by and
between the CITY OF MIAMI B CH, FLORIDA, a municipal corporation, having its principal office at
1700 Convention Center Drive, Mi i Beach, Florida, 33139, (City), and MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION a loridavot-for-profit corporation, having its principal office at 945
.Pennsylvania Avenue, Miami Beach, rida.33139 (Developer).
TNESSETH:
WHEREAS; the Citywas awarded an initia rant underthe Neighborhood Stabilization Program
1 (NSP1), in the amount of-$2,549,.551.00, on July , 2009, and, accordingly, on November 24, 2009,
entered into a Grant Agreement with the State Depa ent of Community Affairs (DCA); and
WHEREAS, on September 9, 2009, pursuant to R solution No 2009-27194, the City entered
into an NSP1 Agreement with MBCDC, dated January 27, 010, in the amount of $2,378,181.53,
representing the available funding after the reduction of the City's administration allowance, and
accepting the Developer's proposal for the acquisition and habilitation of a sixteen (16) unit
residential property, located at 7871 Crespi Boulevard, Miami Beac Florida (the Crespi Project), with
any remaining funds after said acquisition and rehabilitation to be utili ed for the Secondary Objective
Project -Home Ownership Activities; and
WHEREAS, the City's needs, available inventory of foreclosed prop ties, and ability to expend
the aNocated funds, justified a request for additional NSP1 funds; and
WHEREAS, on February 3, 2010, the City Commission adopted Resoluti No. 2010-27335,
ratifying'the submission of a request to the State of Florida.Department of Communi Affairs~(DCA) for
any and all recaptured NSP1 funds, and. further authorizing an Amendment to the N P1 Agreement
vvith MBCDC for any additional funds that may be granted pursuant to the City's reque ts; and
WHEREAS, on February 18, 2010, the City was awarded an additional allocation of ,755,717
NSP1 recaptured funds; accordingly, the City executed Modification No. 1 to the NS Grant
Agreement between the City and the State Department of Community Affairs; and
WHEREAS, on March 6, 2010, the Developer entered into a Contract for Sale and Purchas of
the Neptune Apartments, a 35-unit residential property, located at 1632 Meridian Avenue, Mia i
Beach, Florida-(the Neptune Project); and
WHEREAS, the Neptune Project will provide 17 units of affordable rents! housing #o very-low
income .residents, and 18 units-of affordable rental housing to moderate income residents; and
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WHEREAS, in order to bridge the gap between available NSP1 funding {$4,755,717) and the
a uisition price of the Neptune Apartments ($5,657,850), the Developer intends to obtain funding from
thre dditional sources: $700,000 from International Finance Bank, a private lending institution; and
$607,8 from City HOME Community Housing Development Organization (CHDO) funds for FY2009-
2010; and transfer of unused funds, in the amount of $246,898.53, from the Crespi Project.
NOW, T REFORE, in consideration of the mutual promises contained herein, the parties
hereby amend the SP1 Agreement as follows:
1. Section 2, on pa 2 of the Agreement, is amended to include the following:
The Ne tune artments Project Prima objective) -Rental Housing Acti~I
Purchase and reh ilitation of a three-sto residential a artment buildin containin
units located at 163 Meridian Avenue Exhibit 1 Ne tune A artments Proforma d
February 19. 2010).
2. Section 3, on page 2 of the Agreet~ent, is amended to include the following:
Additional Funds: Sub'ect to the availabili of funds the Cit a rees to make
available accordin to the term and conditions contained in the A reement, an
additional amount not to exceed F UR MILLION SIX HUNDRED'SEVENTY-NINE
THOUSAND TWO HUNDRED TWE -SIX AND 78/100 DOLLARS 4 679 226.78
(herein referred to as "the Additional Fu s").
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3. All other terms and conditions of the Agreement sha remain unchanged and in full force and
effect.
IN WITNESS WHEREOF, the parties hereto execute this endment No. 1 as of the day and
date first above written.
ATTEST:
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City Clerk
MIAMI BEACH C MUNITY
DEVELOPMENT C PORATION ATTEST:
a Florida .not-for-profit rporation.
Roberto Datorre
President, Authorized Signatory
CITY OF MIAMI BEACH
a Florida Municipal Corporation
a I Herrera-B wer, ayor
F:\RHCDI$ALLIHS~-CDIALLINSP 11MBCDC CorrespondencelAmendment No. 1 Additional allocation.doc
APPROVED AS TO
FORM & LANGUAGE
ION
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