96-21920 RESO
RESOLUTION NO.
96-21920
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE THE
ATTACHED AMENDMENT TO THAT CERTAIN MULTI-
FAMILY HOUSING REHABILITATION PROGRAM
MATCHING GRANT AGREEMENT, DATED JUNE 22,1995,
PERTAINING TO THE BLACKSTONE APARTMENTS AT 800
WASHINGTON AVENUE, EXTENDING THE TIME TO
COMPLETE THE REHABILITATION OF THE PROJECT TO
AUGUST 15, 1996.
WHEREAS, on June 22, 1995, the City of Miami Beach entered into that certain
Multi-Family Housing Rehabilitation Program Matching Grant Agreement (the "Agreement")
with The Blackstone Hotel Associates, Ltd. ("Owner"), pertaining to the rehabilitation of the
Owner's property at 800 Washington Avenue, Miami Beach, Florida (the "Project"); and
WHEREAS, pursuant to the Agreement, the rehabilitation of the Project was due to
be completed no later than nine (9) months after the date of the Agreement; and
WHEREAS, due to circumstances beyond the Owner's control, including: a) the
discovery by the exterior stucco contractor, that an additional layer of membrane material
had to be removed, and b) that the terra-cotta blocks used for the exterior walls contained
large voids which require filling prior to applying the new coat of stucco; both of these
conditions were not foreseen by the contractor. As a result, the rehabilitation of the
Project has been delayed; and
WHEREAS, the successful rehabilitation of the Project will eliminate an undesirable
water intrusion problem affecting the majority of the 131 elderly and disabled tenants
residing in the Blackstone Apartments.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Clerk
are authorized to execute the attached Amendment to that certain Multi-Family Housing
Rehabilitation Program Matching Grant Agreement, dated June 22, 1995, pertaining to the
property at 800 Washington Avenue, extending the time for rehabilitation of the Project to
August 15, 1996, all other terms and conditions remain in effect.
PASSED and ADOPTED this 20th
March
,1996.
ATTEST:
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CITY CLERK
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DDHP\ICOMMEMOIBLKST AMD.RES
CITY OF
MIAMI
BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. -J t..l ~ -q {,
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE:
March 20, 1996
SUBJECT:
Jose Garcia_pedrost
City Manager
A RESOLUTION A HORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AMENDMENT TO THAT CERTAIN MULTI-FAMILY HOUSING REHABILITATION
PROGRAM MATCHING GRANT AGREEMENT, DATED JUNE 22,1995, PERTAINING TO
THE BLACKSTONE APARTMENTS AT 800 WASHINGTON AVENUE; EXTENDING THE
TIME TO COMPLETE THE REHABILITATION OF THE PROJECT.
FROM:
ADMINISTRATION RECOMMENDATION:
It is recommended that the Mayor and City Commission adopt the attached Resolution authorizing the Mayor
and City Clerk to execute an Amendment to that certain Multi-Family Housing Rehabilitation Program
Matching Grant Agreement, dated June 22, 1995. This Amendment authorizes an extension of time to
complete the rehabilitation project which is currently underway at the Blackstone Apartments located at 800
Washington Avenue, Miami Beach.
BACKGROUND:
The City, through the Housing and Community Development Division, of the Design, Development and
Historic Preservation Services Department administers various federally-funded housing programs. The
Multi-Family Housing Rehabilitation programs provide the financial assistance necessary to undertake
rehabilitation of multi-family rental properties in order to provide decent, safe and sanitary rental housing for
qualified individuals and families. The City has offered this financial assistance for the past fourteen (14)
years resulting in the successful renovation of over 1 ,100 units of rental housing.
The funds for these programs come directly to the City from the U.S. Department of Housing and Urban
Development (HUD). The guidelines for the programs require that the buildings be maintained in rental use
for a specified period of time.
On March 15, 1995 the Mayor and City Commission approved Resolution #95-21519, authorizing the Mayor
and City Clerk to enter into an Agreement with the owner of the property located at 800 Washington Avenue.
The Multi-Family Housing Rehabilitation Program Matching Grant Agreement, dated June 22,1995, provided
a combined CDBG and Rental Rehabilitation Program (RRP) subsidy in the amount of $374,860 for the
rehabilitation of the property, and required completion within nine (9) months of the date of the Agreement
(March 22, 1996). The owner is in the process of rehabilitating the building to make it weathertight to stop a
chronic water intrusion problem created in part by damage from Hurricane Andrew.
ANALYSIS:
The rehabilitation contractor has encountered several situations which have caused the project to fall behind
AGENDAITEM~
DATE 3-20 -'1(".
COMMISSION MEMO
MARCH 20, 1996
schedule, including: a) discovery that the exterior stucco concealed an additional layer of membrane material
which had to be removed, and b) that the terra-cotta blocks used for the exterior walls contain large voids
which require filling prior to applying the new coat of stucco. Both of these conditions were not foreseen by
the contractor.
The City's original agreement was to provide a Matching Grant in the amount of $374,860 from two funding
sources, $206,036.79 from Community Development Block Grant (CDBG) Program funds, and $168,823.21
from Rental Rehabilitation Program (RRP) funds. No additional financial obligation for the City will be created
by this Amendment.
The project is now more than thirty-five percent (35%) completed, and progress is continuing. The City has
paid out $46,125 or 12% of the total commitment of funds to the owner thus far. Under the City's payment
procedures, no funds can be disbursed unless additional construction work is completed, certified by the
project engineer, and examined and approved by a qualified City construction inspector. The City's payments
to the Owner are always reduced by a ten percent (10%) retainage, which is paid out upon issuance of a final
Certificate of Completion by the City's Building Services Division.
CONCLUSION:
The rehabilitation of the 800 Washington Avenue property will provide an improved quality of life for the 131
elderly, and disabled tenants, by eliminating a long-continuing water intrusion problem which has affected
most of the apartments in the building. The Administration recommends extending the completion date to
August 15, 1996 for the project in order to maintain the availability of these 131 rental housing units for the
elderly.
The Administration recommends that the Mayor and City Commission adopt the attached Resolution
approving and authorizing the Mayor and City Clerk to execute the Amendment to that certain Multi-Family
Housing Rehabilitation Program Matching Grant Agreement dated June 22, 1995.
JG-P/HSM/~h
DDHPlI\COMMEMOIBLKST AMD.MEM
AMENDMENT TO AGREEMENT
This Amendment (the "Amendment"), dated as of March 20th 1996, to that certain Multi-
Family Housing Rehabilitation Program Matching Grant Agreement (the "Agreement"), a
copy of which is attached hereto as Exhibit "A", entered into on June 22, 1995, is being
entered into by and between, the City of Miami Beach, Florida, a Florida municipal
corporation (the "City"), and The Blackstone Hotel Associates, Ltd., a Florida limited
partnership (the "Owner").
WITNESSETH:
WHEREAS, on June 22, 1995, the City entered into the Agreement with the Owner,
pertaining to the rehabilitation of the Owner's property located at 800 Washington Avenue,
Miami Beach, Florida (the "Project"); and
WHEREAS, pursuant to the Agreement, the rehabilitation of the Project was due to
be completed no later than nine months after the date of the Agreement, March 22, 1996;
and
WHEREAS, due to circumstances beyond the Owner's control, including: a)
discovery by the exterior stucco contractor that an additional layer of membrane material
had to be removed, and b) that the terra-cotta blocks used for the exterior walls contained
large voids which required filling prior to applying the new coat of stucco. Both of these
conditions were not foreseen by the contractor. As a result, the rehabilitation of the
Project has been delayed; and
WHEREAS, the successful rehabilitation of this Project will eliminate an undesirable
water intrusion problem affecting the majority of the131 elderly and disabled tenants
residing in the Blackstone Apartments.
NOW THEREFORE, in consideration of the mutual promises contained herein, and other
good and valuable consideration, the receipt and adequacy of which is hereby conclusively
acknowledged, the parties hereto agree as follows:
1. ABOVE STATEMENTS.
The above statements are true and correct.
2. EXTENSION OF TIME FOR REHABILITATION OF THE PROJECT.
Owner shall obtain a final Certificate of Completion from the City's Building Services
Department, pertaining to the rehabilitation of the Project, no later than August 15, 1996.
Section 16(a)(ii) of the Agreement is amended and will read as follows:
diligently pursue construction and timely
complete the project by securing a Final
Certificate of Occupancy/Certificate of
Completion no later than August 15, 1996, or
3. CONFLICT.
In the event of any conflict between the terms of this Amendment and the
Agreement, the terms of this Amendment shall prevail.
4. GOVERNING LAW.
This Amendment and the Agreement shall be governed by and construed in
accordance with the laws of the State of Florida.
IN WITNESS WHEREOF, the City and the Own
be executed by their duly authorized officers as of th
have caused this Amendment to
ate first written a ove.
Date~~/ ~ /fiJf
ATTEST:
Q()br f~
ROBERT PARCHER, CITY CLERK
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The Blackstone Hotel Associates, Ltd.,
a Florida limited partnership
C;b'
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~~<~~
pge,~rez, Er . ~
//The Related Companies of Florida, Inc.
c.//General Partner
WITNESS:
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