2010-27484 Resoi~
RESOLUTION NO 2010-27484
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, RATIFYING AMENDMENT N0.4 TO
THE NSP1 AGREEMENT BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION {MBCDC), APPROVING
A ONE TIME ONLY TRANSFER IN THE OWNERSHIP OF THE
PROPERTY LOCATED AT 530 75 STREET, MIAMI BEACH, FLORIDA,
FROM MBCDC TO MBCDC: LOTTIE APARTMENTS, LLC, A LIMITED
LIABILITY CORPORATION WHOSE SOLE MEMBER AND AGENT iS
MBCDC.
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. 2010-27335, the City
was authorized to execute subsequent amendments to the NSP1 Agreement with
Developer, for any additional NSP1 funds which might be granted pursuant to the City's
requests; 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 November 24, 2009 NSP1 Grant Agreement with DCA; and
WHEREAS, on March 30, 2010, City and Developer also executed Amendment No.
2 to the 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; .and
WHEREAS, on July 1, 2010, the City was awarded an additional allocation of
$2,000,000 in recaptured NSP1 funds, and, accordingly, executed Modification No. 2 to the
November 24, 2009 NSP1 Grant Agreement with DCA; and .
WHEREAS, on March 3, 2010, Developer entered into a contract for purchase and
sale of the Lottie Apartments, a nine (9) unit residential property, located at 530 75th Street,
Miami Beach, Florida, for a purchase price of $1,185,000; and
.WHEREAS, on July 22, 2010, City and Developer executed Amendment No. 3 to
.Developer's NSP1 Agreement, to identify and include the Lottie Apartments Project, and to
identify the additional NSP1 funding being allocated for said Project, in the .amount of
$1,864,000.00 for the acquisition and rehabilitation; and
WHEREAS, Developer has requested that the City approve a transfer in the
ownership of the Lottie Apartments from MBCDC, to MBCDC: Lottie Apartments, LLC, a
Florida limited liability corporation whose sole member and agent is MBCDC.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby ratify Amendment No. 4 to the NSP1 Agreement between the City and
Miami Beach Community Development Corporation (MBCDC), approving a one time only
transfer in the ownership of the Property located at 530 75 Street, Miami Beach, Florida
from MBCDC to MBCDC: Lottie Apartments, LLC, a limited liability corporation whose sole
member and agent is MBCDC.
PASSED AND ADOPTED this "~Sf~ day of ~C' ~2wi bCY' , 2010.
ATTEST:
V~-~ V ~~
CITY CLERK
Matti Herrera Bower
Mayor
T:IAGENDA120101September 15\ConsentWSP .1 =Lottie Apts Assignment RESO.doc
APPROVED AS TO
FORM & LANGUAGE
~ FnN.EXECUTION
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Condensed Title:
COMMISSION ITEM SUMMARY
A resolution ratifying Amendment No. 4 to the City's NSP1 Agreement with MBCDC, approving aone-time only transfer in the
ownership of the property located at 530 75 Street from MBCDC to MBCDC: Lottie Apartments, LLC; and further authorizing
the Cit Mana er to execute an and all documents to effectuate the aforestated transactions..
Ke Intended Outcome Su orted:
Increase access to workforce or affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.):
Based on the 2009 Customer Satisfaction Survey, 38% of residents rated availability of workforce housing as acceptable /the
ri ht amount.
Issue:
Shall the City ratify aone-time assignment in the ownership of the Lottie Apartments, located at 530 75 Street, Miami Beach,
Florida, from MBCDC to MBCDC: Lottie Apartments, LLC, a limited liability corporation whose sole member is MBCDC?
Item Summa /Recommendation:
On July 31, 2009, the City of Miami Beach was awarded a total of $2,549,551 from the State (DCA) under the Neighborhood
Stabilization Program (NSP1) for the purchase and rehabilitation of foreclosed properties to be renovated for affordable housing.
Pursuant to an RFP process, a contract was awarded to Miami Beach Community Development Corporation, snot-for-profit
corporation (MBCDC), accepting its proposal for the acquisition and rehabilitation of the 16-unit residential property located at
7871 Crespi Boulevard, which was acquired on January 27, 2010.
The City was subsequently awarded two additional NSP 1 allocations and, at the time of the second award, DCA staff
recommended that, in light of the impending NSP1 obligation deadline of September 2010, the City attach any additional
allocations to the existing agreement governing the award of the NSP1 funds via a contract amendment. DCA observed that
the City had already awarded the original NSP1 funding allocation to its HUD-recognized Community Housing Development
Organization (CHDO) as its development partner after undertaking a Request for Proposals process, wherein MBCDC was
selected as the sole responsive bidder. Subsequently, on February 3, 2010, the City Commission approved Resolution No.
2010-27335 authorizing any and all additional recaptured NSP1 funds to be used for acquisition and/or rehabilitation of
additional foreclosed buildings. The expenditure deadlines remained the same. The City amended its contract with DCA as well
as its contract with MBCDC to first accept and utilize additional NSP1 funding in the amount of $4,755,717 for the acquisition
and rehabilitation of The Neptune, a 35-unit building, located at 1632 Meridian Avenue, Miami Beach, Florida; and then to
accept and utilize an additional $2,000,000 for the acquisition and rehabilitation of the Lottie Apartments, anine -unit building,
located at 530 75 Street, Miami Beach, Florida.
As is customary for every project MBCDC develops, a separate ownership entity was created for each property, requiring aone-
timeassignment inthe transfer of ownership for each acquisition from MBCDC to the newly created limited liability corporation.
The transfer in ownership of the building at 7871 Crespi Blvd. from MBCDC to a limited liability corporation was approved by the
City Commission on March 10, 2010, per Resolution No. 2010-27348. The transfer in ownership of The Neptune from MBCDC
to MBCDC: Neptune, LLC was approved by the City Commission on May 12, 2010, per Resolution No. 2010-27390.
In the case of the Lottie Apartments, the funding allocation was awarded to MBCDC, and MBCDC: Lottie Apartments, LLC, a
Florida not-for-profit limited liability company:was created to own the property. The closing of the acquisition took place on
August 10, 2010, while the City Commission was in recess. Amendment No. 4 to the NSP1 Agreement between the City and
MBCDC approves the transfer in ownership from MBCDC, Inc. to MBCDC: Lottie Apartments, LLC. Therefore, ratification of
Amendment No. 4 to the NSP1 A reement between the Ci and MBCDC is re uired.
wr------- ^- -' ^
wares r~ecvmmenaation:
Financial Information:
Source of Amount Account
Funds: 1 N/A N/A
OBPI Total
Financial Im act Summa
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Anna Parekh
Sign-Offs:
Department Director istant City Manager City Manager
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AGENDA ITEM G7
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower andMembers of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 15, 2010
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, RATIFYING AMENDMENT NO. 4 TO THE NSP1 AGREEMENT
BETWEEN THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), APPROVING A ONE TIME ONLY TRANSFER IN THE
OWNERSHIP OF THE PROPERTY LOCATED AT 530 75 STREET, MIAMI BEACH,
FLORIDA, -FROM MBCDC TO MBCDC: LOTTIE APARTMENTS, LLC, A LIMITED
LIABILITY CORPORATION WHOSESOLE MEMBER AND AGENT IS MBCDC
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On July 19, 2009, the City of Miami Beach was awarded a total of $2,549,551 from the State
Department of Community Affairs (DCA) under the Neighborhood Stabilization Program (NSP1) for
the purchase and rehabilitation of foreclosed properties to be renovated for affordable housing. The
City Commission adopted Resolution No. 2009-27039, approving a plan which called for the
purchase and rehabilitation, as necessary, of-one or more foreclosed and abandoned multi-family
buildings in the City. These buildings would be in those areas of the City that were determined to
have the greatest need and would be made available as rental housing units for income-qualified
households.
Pursuant to the issuance of a Request for Proposals to solicit developers with the capability and
capacity to meet the requirements and strict deadlines of the DCA contract, a contract was awarded
to Miami Beach Community Development Corporation (MBCDC), anot-for-profit corporation,
accepting its proposal forthe acquisition and rehabilitation of a sixteen (16) unit residential property
located at 7871 ~Crespi Boulevard, Miami Beach.
The City was subsequently advised by the DCA of the award of additional allocations to the City. At
the time of the second award, DCA staff recommended that, in light of the impending NSP1
obligation deadline of September 2010, the City attach any additional allocations to -the existing
agreement governing the award of the NSP1 funds via a contract amendment. DCA observed that
the City had already awarded the original NSP1 funding allocation to its HUD-recognized
Community Housing Development Organization (CHDO) as its development partner after
undertaking a Request for Proposals process, wherein the Miami Beach Community Development
Corporation (MBCDC) was selected as the sole responsive bidder.
i
NSP1-Lottie `Apartments Assignment
September 15 2010
Page 2 i,
On February 2, 2010, the City Commission approved Resolution No. 2010-27335 authorizing any
and all additional recaptured NSP1 funds allocated to the City to be utilized for the acquisition and
rehabilitation, as necessary, of foreclosed, bank-owned buildings that meet the requirements of the
NSP program,!, with such units in -those buildings to be made available as rental properties for
income-qualified households and developed by the NSP1 Sub-recipient (MBCDC).
The City subsequently amended its contract with DCA as well as its contract with MBCDC to first
accept and utilize NSP1 funding in the amount of $4,755,717 for the acquisition and rehabilitation of
The Neptune, a 35-unit building, located at 1632 Meridian Avenue, Miami Beach, Florida; and then
to accept and utilize $2,000,000 for the acquisition and rehabilitation of the Lottie Apartments, a
nine-unit building, located at 530 75 Street, Miami Beach, Florida.
As is customary for every project MBCDC develops, a separate ownership entity was created for
each property, requiring cone-time assignment in the transfer of ownership for each acquisition from
MBCDC to the newly created limited liability corporation. The transfer in ownership of the building at
7871 Crespi Blvd. from MBCDC, to a limited liability corporation was approved by the City
Commission on March 10, 2010, per Resolution No.2010-27348. The transfer in ownership of The
Neptune from MBCDC to MBCDC: Neptune, LLC was approved bythe City Commission on May 12,
2010, per Resolution No. 2010-27390.
In the case of the Lottie Apartments, the funding allocation was awarded to MBCDC, but MBCDC:
Lottie Apartments, LLC, a Florida not-for-profit limited liability company was created to own the
property. The closing of the acquisition took place on August 10, 2010, while the City Commission
was in recess. Amendment No. 4 to the NSP1 Agreement between the City and MBCDC approves
the transfer in'.ownership from MBCDC, Inc. to MBCDC: Lottie Apartments, LLC. Therefore
ratification of Amendment No. 4 to the NSP1 Agreement between the City and MBCDC is required.
In order to ensure that the property remains as affordable housing during the required 30-year
Affordability Period, a reverter clause in favor of the City was included in the mortgage.
CONCLUSION
The Administration recommends ratification of Amendment No. 4 to the NSP1 Agreement between
the City and MBCDC, approving aone-time only transfer in the ownership of the .property located at
530 75 Street, Miami Beach, Florida, from MBCDC to MBCDC: Lottie Apartments, LLC, a limited
liability corporation whose sole member is MBCDC.
JMG/HMF/AP
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T:\AGENDA\2010\September 15\ConsentWSP 1 -Lottie Apts Assignment Memo.doc
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AMENDMENT N0.4
TO
NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1) AGREEMENT, DATED
JANUARY 27, 2010, BETWEEN CITY OF MIAMI BEACH, FLORIDA AND MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION
THIS AMENDMENT NO. 4 TO NEIGHBORHOOD STABI 1~ TION PROGRAM
1 NSP1 AGREEMENT entered into this ~ ~~da of ~~~D~1~, b and between
( ) y y
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 entj red into an NSP1 Grant Agreement with the State of Florida Department of
Community,Affairs (DCA); and
i
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. 2010-27335, the
City was authorized to execute subsequent amendments to the. NSP1 Agreement with
Developer, for any additional NSP1 funds which might be granted pursuant to the City's
requests; 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 November 24, 2009 NSP1 Grant Agreement with DCA; and
WHEREAS, on March 30,~ 2010, City and Developer also executed Amendment
No. 2 to the 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; and
I
WHEREAS, on July 1, 2010, the City was awarded an additional allocation of
$2,000,000 in recaptured NSP1 funds, and, accordingly, executed Modification No. 2 to
the November 24, 2009 NSP1 Grant Agreement with DCA; and
,,:.. ~ `
.~
WHEREAS, on March 3, 2010, Developer entered into a contract for purchase
and sale of the Lottie Apartments, a nine (9) unit residential property, located at 530 75'n
Street, Miami Beach, Florida, for a purchase price of $1,185,000; and _
WHEREAS, on July 22, 2010, City and Developer executed Amendment No. 3 to
Developer's NSP1 Agreement, to identify and include the Lottie Apartments Project, and
to identify. the additional NSP1 funding being allocated for said Project, in the amount of
$1,864,000.00 for the acquisition and rehabilitation; and
WHEREAS, Developer has requested that the City approve a transfer in the
ownership, of the Lottie Apartments from MBCDC, to MBCDC: Lottie Apartments, LLC, a
Florida limited liability corporation whose sole member and agent is MBCDC.
NOW THEREFORE, in consideration of the mutual promises contained herein,
City and Developer hereby amend the NSP1 ~ Agreement, dated January 27, 2010, as
follows:
1. The parties acknowledge the City's approval and consent of the transfer of
ownership in the Lottie Apartments from MBCDC, to MBCDC: Lottie Apartments,
LLC, a Florida limited liability corporation whose sole member .and agent is
MBCDC.
2. All other terms and conditions of the NSP1 Agreement (as amended) shall
remain unchanged and in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment No. 4 to NSP1
Agreement as of the date first written above.
ATTEST:
Sec ry
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
a Florida not-for-profit corporation
Roberto Datorre
President, Authorized Signatory
ATTEST:
~P~
City Clerk
CITY OF MIAMI BEACH
a Florida Municipal Corporation
J rge onzale , Cit an e
APPROVED AS TO
F:\RHCD\$ALL\HSG-CD\ALLWSP 1\MBCDC CorrespondenceWSP1 AMENDMENT 4.doc FORM & LANGUAGE
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