Amendment 8 to NSP1 and MBCDC AMENDMENT NO. 8
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. 8 TO NEIGHBORHOOD SWILIZATION PROGRAM 1
(NSP1) AGREEMENT is entered into this o?Co�h day of deft h4,-- 2012,by
and between the CITY OF MIAMI BEACH, a Florida municipal corporation, having its
principal office at 1700 Convention Center Drive, Miami Beach, Florida, (City), and MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION, a Florida not-for-profit
corporation, having its principal office at 945 Pennsylvania Avenue, Miami Beach, Florida
33139 (MBCDC or Developer).
WITNESSETH:
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 uest 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 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 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
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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,on September 17,2010,City and Developer executed Amendment No.
4 to Developer's NSP1 Agreement, to transfer ownership of the Lottie Apartments from
MBCDC, to MBCDC: Lottie Apartments, LLC, a Florida limited liability corporation whose
sole member and agent is MBCDC; and
WHEREAS, on May 11, 2011, pursuant to Resolution No. 2011-27657, City was
authorized to enter into and execute Amendment No. 5 to the NSP1 Agreement with
Developer, extending the Term through March 1, 2013; and
WHEREAS,on July 13,2011, pursuant to Resolution No.2011-27693,the City was
authorized to enter into and execute Amendment No. 6 to the NSP1 Agreement with
Developer,adopting the"City's Policies and Procedures:Construction Draw Down Payment
Methodology", dated July 13, 2011; and
WHEREAS, pursuant to the provisions of Chapter 2011-142, Laws of Florida, the
DCA Division of Housing and Community Development was transferred to the Department of
Economic Opportunity(DEO), effective October 1 2011; and
WHEREAS, during DEO's audit of the City's NSP1 Program,which occurred during
the week of October 17, 2011, DEO staff required implementation of a new DEO policy to
complete NSP1 projects ahead of HUD's expenditure plan; and
WHEREAS, DEO staff revised the Term, to provide for a new contract expiration
date, from March 1, 2013, to November 23, 2012; and
WHEREAS, DEO staff also requested that additional terms to be added to the NSP1
Agreement between the City and Developer to memorialize certain policies and procedures;
and
WHEREAS, on December 14, 2011, pursuant to Resolution No. 2011-27806, the
City was authorized to enter into and execute Amendment No. 7 to the NSP1 Agreement
with Developer,adopting the new terms requested by DEO and the new expiration date;and
WHEREAS,on November 6,2012, MBCDC requested an extension of time to obtain
the CO's on all three projects and occupy the units; and
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WHEREAS,The Madeleine Apartments received a Certificate of Occupancy(CO)on
October 11, 2012, The Neptune Apartments received a Certificate of Occupancy(CO)on
November 15, 2012, and The Lottie Apartments has recently applied for CO status.
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. Section 11, on page 4 of the Agreement, is deleted in its entirety and replaced with
the following:
Section 11. Terre: This Agreement shall commence upon the last date of
execution by the parties hereto (the Execution Date), and shall
terminate on February 15,2013.Any costs incurred by the Developer
prior to the Execution Date which were not approved by the City,will
not be reimbursed by the City.
Notwithstanding the preceding, the City hereby agrees to a second
extension of the Term, through February 15, 2013, which extension
shall be contingent upon approval by the State of Florida, in
accordance with the guidelines established in the 2008 State of
Florida Action Plan Substantial Amendment (Attachment VIII). If
approved, by the State, the aforestated extension is intended to be
co-terminous with the City's DEO contract expiration date; and with
the understanding that, at the end of the Term, the State has the
authority to re-capture any remaining unused funds.
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. 8 to NSP1
Agreement as of the date first written above.
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
ATTEST: a Florida not-for-profit corporation
t
Sec etary Roberto Datorre
President, Authorized Signatory
ATTEST: CITY OF MIAMI BEACH
a Florida Municipal Corporation
City Clerk May
F:IRHCDI$ALLIHSG-CDIALLINSP 11MBCDC CorrespondencelAmendments\NSP1 AMENDMENT 8 Extension 2-13.doc APPROVED AS TO
FORM & LANGUAGE
3 &FOR EXECUTION
A ome iW Date