2011-27637 Reso RESOLUTION NO. 2011 -27637
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING A ONE -TIME ONLY ASSIGNMENT OF
THE FY 2010/2011 HOME AGREEMENT, DATED MARCH 28, 2011, IN THE
AMOUNT OF $566,257, BETWEEN THE CITY AND MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC), AS ASSIGNOR, TO MBCDC:
MERIDIAN PLACE, LLC, A NOT - FOR - PROFIT CREATED BY MBCDC (AND
WHOSE SOLE MEMBER IS MBCDC), AS ASSIGNEE AND AS SUCCESSOR IN
INTEREST IN TITLE OF MERIDIAN PLACE, LOCATED AT 530 MERIDIAN
AVENUE, MIAMI BEACH, FL.
WHEREAS, on February 18, 1992, the City was designated by the United States Department of
Housing and Urban Development (HUD) as a participating jurisdiction for the receipt of funds as
provided under the HOME Investment Partnerships Program and pursuant to the HOME Program
Final Rule, 24 CFR PART 92, as same may be amended from time to time; and
WHEREAS, the City has an agreement with HUD for the purpose of conducting an affordable
housing program with federal financial assistance under the HOME Program; and
WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution No.
93- 20756, designating Miami Beach Community Development Corporation (MBCDC) as a qualified
Community Housing Development Organization (CHDO) under the HOME Program; and
WHEREAS, the City has determined the necessity for providing affordable housing in the City
through the Fiscal Year 2010/2011 One -Year Action Plan for Federal funds, adopted by Resolution
No. 2010 -27428 on July 14, 2010.
WHEREAS, MBCDC entered into a HOME Agreement with the City, dated March 28, 2011,
to fund the rehabilitation of the Meridian Place Apartments, located at 530 Meridian Avenue, in the
amount of $566,257 (the Agreement); and
WHEREAS, MBCDC 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, MBCDC has requested, and the Administration hereby recommends, that the Mayor
and City Commission approve an assignment of the Agreement from MBCDC, as assignor, to
MBCDC: Meridian Place, LLC, as assignee.
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 a one -time
only assignment of the HOME Agreement, dated March 28, 2011, between the City and Miami Beach
Community Development Corporation (MBCDC), as assignor, to MBCDC: Meridian Place, LLC, a
not - for - profit entity created by MBCDC (and whose sole member is MBCDC) as assignee and as
successor in interest in title to the Meridian Place Apartments, located at 530 Meridian Avenue,
Miami Beach, FL.
020//-z7d 7
PASSED AND ADOPTED THIS DAY OF 4pri/ , 2011
ATTEST:
tUdt Lk_ 4141 -
CITY CLERK — Robert Parcher AY• ' — Matti errer. Bower
T:AAGENDA■2011\April 13\Consent \Meridian Place, LLC (Assignment RESO).doc
APPROVED AS TO
FORM &,-t NGUAGE
FO CUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution authorizing the assignment of the $566,257 FY 2010/2011 HOME Agreement from MBCDC to MBCDC: Meridian Place,
LLC, a not - for - profit entity created by MBCDC; and authorizing the assignment of the $500,000 FY 2010/2011 HOME Agreement
from MBCDC to MBCDC: The Barclay, LLC, a not - for - profit entity created by MBCDC.
Key Intended Outcome Supported:
1. Increase access to workforce or affordable housing. 2. Improve the lives of elderly residents.
Supporting Data (Surveys, Environmental Scan, etc.: Based on the 2009 Customer Satisfaction Survey: 17.5% of
businesses feel that lack of workforce housing is one of their most important challenges; 80% of residents 65 or older rated City
response to expectations as good or excellent;
Issue:
Shall the March 28, 2011, HOME Agreements with MBCDC be assigned to MBCDC: Meridian Place, LLC, and MBCDC: The
Barclay, LLC; entities created by MBCDC as successors in interests?
Item Summary /Recommendation:
On July 14, 2010, the City Commission approved Resolution 2010 - 27428, adopting the One -Year Action Plan for federal funds for
Fiscal Year 2010/2011, allocating $1,066,257 of HOME Program funding to Miami Beach Community Development Corporation
(MBCDC) to be utilized in the provision of rental and /or homeownership opportunities and acquisition and /or rehabilitation of multi-
family residential units. Subsequently on March 28, 2011, contracts were signed with MBCDC, allocating $566,257 of the HOME
funding to the Meridian Place Apartments project, located at 530 Meridian Avenue; and allocating $500,000 to the Barclay
Apartments project, located at 1940 Park Avenue. Meridian Place Apartments will provide 34 units of affordable housing to income
eligible elderly, formerly homeless persons; and the Barclay Apartments provide 66 units of affordable housing to income eligible
persons. Funding for Meridian Place was allocated to provide gap funding in a total building rehabilitation project. Funding for the
Barclay Apartments was allocated to provide funding for elevator modifications and electrical systems upgrades that are required for
the building to be compliant with 40 -Year Building Re- Certification Codes.
For each of MBCDC's development projects, a separate ownership entity is created; this is common in development by both private
and non - profit organizations as a means to limit liability. In the case of the Meridian Place Apartments, MBCDC: Meridian Place,
LLC, a Florida not - for - profit limited liability corporation, was created. Likewise, for the Barclay Apartments, MBCDC: The Barclay,
LLC, was created. However, funding allocations were awarded to MBCDC, which is the sole member of each of the LLCs.
It is recommended that the Mayor and City Commission authorize the assignment of the previously awarded funds to the respective
limited liability corporations created for these two projects.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Funds: Amount Account
1 N/A
2
3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Anna Parekh X7260
Sign -Offs:
,.Department Director Assitant City Manager City Manager
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AP HF`�r` IA / / JMG
AGE1D ITEM C / A1
M IAMIBEACH
DATE 9-1.?"-//
Cr? MIAMIBEACH
City of Miami 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: April 13, 2011
SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING A ONE -TIME ONLY ASSIGNMENT
OF THE FY 2010/2011 HOME AGREEMENT IN THE AMOUNT OF $566,257
BETWEEN THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), TO MBCDC: MERIDIAN PLACE, LLC, A NOT -FOR-
PROFIT CREATED BY MBCDC (AND WHOSE SOLE MEMBER IS MBCDC) AS
A SUCCESSOR IN INTEREST IN TITLE OF MERIDIAN PLACE, LOCATED AT
530 MERIDIAN AVENUE, MIAMI BEACH, FL.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING A ONE -TIME ONLY ASSIGNMENT OF
THE FY 2010/2011 HOME AGREEMENT IN THE AMOUNT OF $500,000
BETWEEN THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION ( MBCDC), TO MBCDC: THE BARCLAY, LLC, A NOT -FOR-
PROFIT CREATED BY MBCDC (AND WHOSE SOLE MEMBER IS MBCDC) AS
A SUCCESSOR IN INTEREST IN TITLE OF THE BARCLAY APARTMENTS,
LOCATED AT 1940 PARK AVENUE, MIAMI BEACH, FL.
ADMINISTRATION RECOMMENDATION
Adopt the resolutions.
BACKGROUND
On July 14, 2010, the City Commission approved Resolution 2010- 27428, adopting the One -Year
Action Plan for federal funds for Fiscal Year 2010/2011, allocating $1,066,257 of HOME Program
funding to Miami Beach Community Development Corporation (MBCDC) to be utilized in the
provision of rental and /or homeownership opportunities and acquisition and /or rehabilitation of multi-
family residential units. Subsequently on March 28, 2011, contracts were signed with MBCDC,
allocating $566,257 of the HOME funding to the Meridian Place Apartments project, located at 530
Meridian Avenue; and allocating $500,000 to the Barclay Apartments project, located at 1940 Park
Avenue. Meridian Place Apartments will provide 34 units of affordable housing to income eligible
elderly, formerly homeless persons; and the Barclay Apartments provide 66 units of affordable
housing to income eligible persons. Funding for Meridian Place was allocated to provide gap
funding in a total building rehabilitation project. Funding for the Barclay Apartments was allocated to
provide funding for elevator modifications and electrical systems upgrades that are required for the
building to be compliant with 40 -Year Building Re- Certification Codes.
Page 2 of 2
Consent to Assignment /Meridian & Barclay
For each of MBCDC's development projects, a separate ownership entity is created; this is common
in development by both private and non - profit organizations as a means to limit liability. In the case
of the Meridian Place Apartments, MBCDC: Meridian Place, LLC, a Florida not - for - profit limited
liability corporation, was created. Likewise, for the Barclay Apartments, MBCDC: The Barclay, LLC a
Florida not - for - profit, was created. However, funding allocations were awarded to MBCDC, which is
the sole member of each of the limited liability corporations.
ANALYSIS
Assignments of the March 28, 2011 Contract Agreements from MBCDC to MBCDC: Meridian Place,
LLC, and to MBCDC: The Barclay, LLC are necessary to protect the City's interests by allowing the
City to contract with the legal owners of the properties.
CONCLUSION:
The administration recommends that the Mayor and City Commission, authorize a one -time only
assignment of the March 28, 2011 HOME Agreements in the amounts of $566,257 and $500,000
between the City of Miami Beach and Miami Beach Community Development Corporation, to
MBCDC: Meridian Place, LLC, and MBCDC: The Barclay, LLC, respectively. 1 ';
i
JMG /HF / /ARB
T:\AGENDA\2011\April 13 \Consent \Meridian & Barclay Assignments - MEMO.doc