2002-24740 Reso
RESOLUTION NUMBER 2002-24740
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING
THE TRANSFER OF OWNERSHIP OF THE BLACKSTONE
APARTMENTS, LOCATED AT 800 WASHINGTON AVENUE,
FROM THE BLACKSTONE HOTEL ASSOCIATES, LTD. TO
BLACKSTONE EQUITIES, LLC, FURTHER, APPROVING
THE ATTACHED ASSIGNMENT AND ASSUMPTION
AGREEMENT BEnNEEN THE BLACKSTONE HOTEL
ASSOCIATES, L TD AND BLACKSTONE EQUITIES, LLC
FOR THE MULTI-FAMILY HOUSING REHABILITATION
PROGRAM MATCHING GRANT AGREEMENT BETWEEN
THE CITY AND THE BLACKSTONE HOTEL ASSOCIATES,
LTD., DATED JUNE 22,1995.
WHEREAS, the City of Miami Beach has established a program to encourage the
rehabilitation of existing substandard ulti-family buildings, using funds supplied by the
U.S, Department of Housing and Urba Development (HUD); and
WHEREAS, on July 22, 1992, the Mayor and City Commission approved and
adopted revised guidelines (the "Guid lines") for providing assistance to property owners
under the programs sponsored by HU ; and
WHEREAS, the Multi-Family Ho sing Rehabilitation Program is administered by the
City's Housing Division' and is a HUD- ponsored program; and
WHEREAS, on June 22, 1995, the City and the Blackstone Hotel Associates Ltd.
entered into a Multi-Family Housing Re abilitation Program Matching Grant Agreement for
the Blackstone Apartments, located a 800 Washington Avenue, and
WHEREAS, in accordance with he terms of the Multi-Family Housing Rehabilitation
Program Matching Grant Agreement, t ansfer of ownership of the Blackstone Apartments
and assignment of said agreement r quire the prior written consent from the City and
approval by the Loan Review Commi ee, and
WHEREAS, Blackstone Equiti s, LLC, has agreed to assume the Multi-family
Housing Rehabilitation Program Ma ching Grant Agreement between the City and
Blackstone Hotel Associates, Ltd" or the Blackstone Apartments, located at 800
Washington Avenue, dated June 22, 995, and
WHEREAS, Blackstone Equitie ,LLC, has agreed to offer, for a minimum offive (5)
years, 67 of the 131 residential units as available affordable rental housing, beginning
January 12, 2003, after the current H using Assistance Plan contract expires; and
WHEREAS, the City's Loan Review Committee, at its emergency meeting of
January 29, 2002, reviewed a request to transfer ownership of the Blackstone Apartments,
located at 800 Washington Avenue, from the Blackstone Hotel Associates, Ltd. to
Blackstone Equities, LLC, and a request for the assignment to Blackstone Equities LLC of
the Multi-Family Housing Rehabilitation Program Matching Grant Agreement between the
City and Blackstone Hotel Associates, Ltd., dated June 22, 1995, and recommended
approval by the Mayor and City Commission, and
WHEREAS, the Administration now requests approval for the transfer of ownership
of the Blackstone Apartments, located at 800 Washington Avenue, from the Blackstone
Hotel Associates, Ltd. to Blackstone Equities, LLC, and approval of the attached
Assignment and Assumption Agreement between the Blackstone Hotel Associates, Ltd.
and Blackstone Equities, LLC for the Multi-Family Housing Rehabilitation Program
Matching Grant Agreement between the City and the Blackstone Hotel Associates, Ltd.
dated June 22, 1995.
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 the transfer of ownership of the Blackstone Apartments,
located at 800 Washington Avenue, from the Blackstone Hotel Associates, Ltd. to
Blackstone Equities, LLC, and approve the attached Assignment and Assumption
Agreement between the Blackstone Hotel Associates, Ltd. and Blackstone Equities, LLC
for the Multi-Family Housing Rehabilitation Program Matching Grant Agreement between
the City and the Blackstone Hotel Associates, Ltd. dated June 22, 1995.
APPROVED AND ADOPTED THIS 30th
ATTEST:
hlrPwt.-
ROBERrPARCHER, CITY CLERK
BLKSTONE.RES.doc
APPRCM!DM'IO
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. FOR EXECUTION
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This Instrument Was Prepared By
Record and Return To:
Richard I. Blinderman, Esq,
Steams Weaver Miller Weissler
Alhadeff & Sitterson, PA
ISO West Flagler St., Suite 2200
Miami, Florida 33130
ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Agreement") is made this _ day of
January, 2002, by The Blackstone Hotel Associates, Ltd" a Florida limited partnership ("Original Owner") and
Blackstone Equities, L.L.C., a Delaware limited liability company ("Subsequent Owner "),
BACKGROUND
A. The City of Miami Beach, Florida, a municipal corporation pursuantto the laws of the State of Florida
(the "City") and Blackstone Hotel Associates, Ltd" a Florida limited partnership ("Original Owner") entered into that
certain Multifamily Housing Rehabilitation Program Matching Grant Agreement dated as June 22, 1995 (the "Grant
Agreement") pertaining to a matching grant in the amount of 374,860,00 from the City to the Original Owner for the
rehabilitation of The Blackstone Hotel, a multifamily apartment project on the real property located in the City and
legally described on Exhibit "A" hereto (the "Project").
B. Original Owner desires to sell the Project to Subsequent Owner and Subsequent Owner desires to
purchase the Project.
C. As a condition precedent to any sale, transfer or assignment of the Projeqt prior to the termination
of the Grant Agreement, written consent and approval for such sale, transfer or assignment must be received from the
City's Loan Review Committee and Mayor and City Commission,
D, The City desires to assure that the Project and Subsequent Owner will continue to comply with the
terms and conditions set forth in the Grant Agreement.
E. Subsequent Owner desires to give the City assurance that the terms and conditions set forth in the
Grant Agreement will be complied with so that the sale and transfer of the Project may occur,
F, Original Owner desires to assign all its right, title, duties and obligation under the Grant Agreement
to Subsequent Owner, which desires to assume such rights, title, duties and obligation,
G, The parties hereto desire to set forth the assignment and assumption in writing,
NOW, THEREFORE, in consideration often dollars and other good and valuable consideration, the sufficiency
of which to acknowledged, Original Owner and Subsequent,Owner agree as follows:
I, The above Background is true and correct and incorporated in this Agreement.
2, Original Owner hereby assigns to Subsequent Owner and, Subsequent Owner hereby assumes all
right, title, duties and obligations of Original Owner under the Grant Agreement and shall be deemed a party to the Grant
Agreement as if it were an original party thereto,
3. This Agreement shall be effective as of the effective date of the transfer of ownership from Original
Owner to Subsequent Owner as evidenced by the recording of a deed from Original Owner, as grantor, to Subsequent
Owner, as grantee (the "Deed") in the Public Records of Miami-Dade County, Florida,
4, The Subsequent Owner shall record this Agreement in the Public Records of Miami-Dade County,
Florida as soon as practicable after the recording therein of the Deed and after its recording and the return thereof shall
deliver or cause to be delivered this original Agreement to the City,
5. It is understood and agreed that the City shall be an intended third party beneficiary to this Agreeemnt
6. This Agreement shall be construed in accordance with the laws of the State of Florida,
Dated as of the date first above written.
THE BLACKSTONE HOTEL ASSOCIATES, LID"
a Florida limited partnership
By: The Related Companies of Florida, Inc., a Florida
corporation, its general partner
Print Name:
By:
Name: Matthew], Allen
Title: Vice President
Print Name:
BLACKSTONE EQUITIES, L.L.C" a Delaware
limited liability company
Print Name:
By:
Name: Michael Fischer
Title: Member
Print Name:
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COUNTY OF
)
)ss:
)
STATE OF FLORIDA
The foregoing instrument was acknowledged before me this _ day of , 2002 by Michael Fischer, as
Member of Blackstone Equities, L.L.C., a Delaware limited liability company, on behalf of the company,
Personally Known
OR Produced Identification
Type of Identification Produced
Print or Stamp Name:
Notary Public, State of
Commission No,:
My Commission Expires:
at Large
-3-
)
)ss:
)
STATE OF FLORIDA
COUNTY OF
The foregoing instrument was acknowledged before me this _ day of ,2002 by Matthew J, Allen, as Vice
President of The Related Group of Florida, Inc., a Florida corporation, the general partner of Blackstone Equities,
L.L.C" a Delaware limited liability company,
Personally Known
OR Produced Identification
Type ofIdentification Produced
Print or Stamp Name:
Notary Public, State of
Commission No.:
My Commission Expires:
at Large
F:\AITO\LEVL\FORMS\cityulumpagtFIN.wpd
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
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Condensed Title:
A resolution approving the transfer of ownership of the Blackstone Apartments from the Blackstone Hotel
Associates, Ltd. to Blackstone Equities, LLC, further, approving the Attached Assignment and Assumption
Agreement between The Blackstone Hotel Associates, L TO and Blackstone Equities, LLC for a Multi-
Family Housing Rehabilitation Program Matching Grant Agreement.
Issue:
Shall the City of Miami Beach approve the transfer of ownership of the Blackstone Apartments from the
Blackstone Hotel Associates, Ltd, to Blackstone Equities, LLC, further, and approve the Attached
Assignment and Assumption Agreement between the Blackstone Hotel Associates, L TO and Blackstone
Equities, LLC.
Item Summary/Recommendation:
The Administration recommends that the Mayor and City Commission approve the transfer of ownership
of the Blackstone Apartments, located at 800 Washington Avenue, from the Blackstone Hotel Associates,
Ltd, to Blackstone Equities, LLC, and approve the attached Assignment and Assumption Agreement
between the Blackstone Hotel Associates, Ltd. and Blackstone Equities, LLC for the Multi-Family Housing
Rehabilitation Program Matching Grant Agreement between the City and the Blackstone Hotel Associates,
Ltd., dated June 22,1995.
Advisory Board Recommendation:
The City's Loan Review Committee, at its emergency meeting of January 29, 2002, reviewed a request to
transfer ownership of the Blackstone Apartments, located at 800 Washington Avenue, from the Blackstone
Hotel Associates, Ltd. to Blackstone Equities, LLC, and a request for the assignment to Blackstone Equities
LLC of the Multi-Family Housing Rehabilitation Program Matching Grant Agreement between the City and
Blackstone Hotel Associates, Ltd., dated June 22, 1995, and recommended approval by the Mayor and City
Commission,
Financial Information:
Amount to be expended:
D
Finance Oept.
Source of
Funds:
AGENDA ITEM
DATE
R7;J
(-00-02-
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Date: January 30, 2002
Mayor David Dermer and
Members of the City Commission
Jorge M, Gonzalez ~ . ~
City Manager tfV 0
A RESOLUTION F THE MA VOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING THE TRANSFER OF
OWNERSHIP OF THE BLACKSTONE APARTMENTS, LOCATED AT 800
WASHINGTON AVENUE, FROM THE BLACKSTONE HOTEL
ASSOCIATES, LTD. TO BLACKSTONE EQUITIES, LLC, FURTHER,
APPROVING THE ATTACHED ASSIGNMENT AND ASSUMPTION
AGREEMENT BETWEEN THE BLACKSTONE HOTEL ASSOCIATES, L TD
AND BLACKSTONE EQUITIES, LLC FOR THE MUL TI-FAMIL V HOUSING
REHABILITATION PROGRAM MATCHING GRANT AGREEMENT
BETWEEN THE CITY AND THE BLACKSTONE HOTEL ASSOCIATES,
LTD., DATED JUNE 22, 1995.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City administers the Multi-Family Housing Rehabilitation Program through the Housing
Division of the Neighborhood Services Department. Since 1981, the City has provided
financial assistance to property owners through this Program resulting in the successful
renovation of over 1,250 units of rental housing, The Multi-Family Housing Rehabilitation
Program operates with federal funds from the U.S. Department of Housing and Urban
Development (HUD) through the Community Development Block Grant (CDBG) Program.
The Blackstone Apartments, a 131-unit apartment building located at 800 Washington
Avenue, is a 14-story structure originally built in 1929. The site consists of two lots and a
portion of a third, with a total of 20,581 square feet. The structure is a 14-story steel
frame/poured concrete high-rise structure, containing 100,500 gross square feet. The
building is considered historically significant and is listed in the City's historic properties
database. Currently, there are no outstanding code violations on the property.
On June 22, 1995, the City and the Blackstone Hotel Associates, Ltd. (Owner) entered into
a Multi-Family Housing Rehabilitation Program Matching Grant Agreement for the
Blackstone Apartments, located at 800 Washington Avenue. Under the terms of the
Agreement, the City provided $374,860 in Community Development Block Grant (CDBG)
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and Rental Rehabilitation Program (RRP) funds toward the rehabilitation of the building,
and the Owner rehabilitated the property and committed to provide, for a minimum of five
years, 67 of the 131 apartments (51%) at affordable rates, The five (5) year affordability
period is scheduled to begin on January 11, 2003 and run through January 11, 2008.
In accordance with the terms of the Multi-Family Housing Rehabilitation Program Matching
Grant Agreement, the Blackstone Hotel Associates, Ltd. is seeking authorization from the
City to transfer ownership of the Blackstone Apartments and assignment of the Multi-
Family Housing Rehabilitation Program Matching Grant Agreement to the Blackstone
Equities, LLC. The closing is scheduled for January 31, 2002, so that the tax-exempt
bonds previously issued by the Miami-Dade County Housing Finance Authority to finance
the Property, that mature on February 1, 2002, can be paid in full with the closing
proceeds.
Prior to seeking approval from the City, the Blackstone Hotel Associates, Ltd. has obtained
approval from the Miami-Dade County Housing Finance Authority, and the Housing
Authority of the City of Miami Beach, to transfer ownership of the property to Blackstone
Equities, LLC. The assumption agreements with these entities are to be signed and
recorded at closing, The assumption agreements commit the new owner to comply with
the affordability requirements of the Miami-Dade County Housing Finance Authority and
the Housing Authority of the City of Miami Beach.
A review of City records indicates that there are .no City code enforcement liens
outstanding, and no unpaid water bills on the property, Property taxes are reported paid
through 2001.
In accordance with the terms ofthe Multi-Family Housing Rehabilitation Program Matching
Grant Agreement, transfer of ownership of the Blackstone Apartments and assignment of
said agreement require the prior written consent from the City and approval by the Loan
Review Committee.
The City's Loan Review Committee, at its emergency meeting of January 29, 2002,
reviewed a request to transfer ownership of the Blackstone Apartments, located at 800
Washington Avenue, from the Blackstone Hotel Associates, Ltd, to Blackstone Equities,
LLC, and a request for the assignment to Blackstone Equities LLC of the Multi-Family
Housing Rehabilitation Program Matching Grant Agreement between the City and
Blackstone Hotel Associates, Ltd" dated June 22, 1995, and recommended approval by
the Mayor and City Commission.
The Administration recommends that the Mayor and City Commission approve the transfer
of ownership of the Blackstone Apartments, located at 800 Washington Avenue, from the
Blackstone Hotel Associates, Ltd. to Blackstone Equities, LLC, and approve the attached
Assignment and Assumption Agreement between the Blackstone Hotel Associates, Ltd.
and Blackstone Equities, LLC for the Multi-Family Housing Rehabilitation Program
Matching Grant Agreement between the City and the Blackstone Hotel Associates, Ltd.,
dated Ju 22, 1995.
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