Resolution 2020-31435 RESOLUTION NO. 2020-31435
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION
OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS
SEPTEMBER 23, 2020 MEETING, PURSUANT TO INVITATION TO
NEGOTIATE (ITN) 2019-099-KB, FOR THE DEVELOPMENT OF THE
COLLINS PARK ARTIST WORKFORCE HOUSING PROJECT (THE
"PROJECT"),AND APPROVING THE TERM SHEET FOR THE PROJECT
ATTACHED AS AN EXHIBIT TO THE COMMISSION MEMORANDUM
ACCOMPANYING THIS RESOLUTION; FURTHER, DIRECTING THE
ADMINISTRATION TO NEGOTIATE A DEVELOPMENT AGREEMENT
WITH SERVITAS, LLC, AND GROUND LEASE WITH COMMUNITY
FINANCE CORP., CONSISTENT WITH THE TERM SHEET, WITH THE
FINAL AGREEMENTS SUBJECT TO THE PRIOR APPROVAL OF THE
MAYOR AND CITY COMMISSION; AND FURTHER, REFERRING THE
PROPOSED PROJECT AND THE FOREGOING AGREEMENTS TO THE
PLANNING BOARD FOR REVIEW, IN ACCORDANCE WITH THE
REQUIREMENTS OF THE CITY CHARTER AND CITY CODE.
WHEREAS, on September 14, 2016, the Mayor and City Commission adopted
Resolution No. 2016-29547, selecting The Concourse Group to identify public-private
partnership (P3) opportunities for the development of workforce/affordable housing
projects on City property, including preparation of a Design Criteria Package for the
Project, located on surface lot P51, at 224 23rd Street; and
WHEREAS, on December 14, 2016, the Mayor and City Commission adopted
Resolution No. 2016-29679, approving a height waiver for the Project, to authorize a
height of up to 75 feet, finding that the waiver was necessary in order to provide optimal
development and to allow for maximum capacity for artist/workforce housing; and
WHEREAS, on January 18, 2019, the City issued ITN 2019-099-KB for the
Project; and
WHEREAS, on July 17, 2019, the Mayor and City Commission adopted Resolution
No. 2019-30908, authorizing simultaneous negotiations with both ITN proposers;
following withdrawal from the process of Atlantic Pacific Communities, LLC, the City
Commission directed negotiation with the sole remaining proposer, Servitas, LLC
("Servitas"); and
WHEREAS, Servitas and the Administration negotiated a term sheet dated
September 17, 2020 (the "Term Sheet"), which is attached as an Exhibit to the
Commission Memorandum accompanying this Resolution; and
WHEREAS, pursuant to the Term Sheet, Servitas proposes a 7-story building
designed by Shulman & Associates and PGAL Architects, with ground floor space for
either commercial retail or artist studios, a dormitory on the second floor for use by the
Miami City Ballet, and approximately 80 workforce housing units on the remaining five
floors; and
WHEREAS, as proposed, the City will enter into a long-term ground lease for the
entire property (the "Ground Lease") with a nonprofit 501(c)(3) organization, Community
Finance Corporation (the "Ground Lessee"), which would finance the design and
construction of the Project with tax exempt bond financing (which would be non-recourse
to the City, with principal and interest payable solely from Project revenues); and
WHEREAS, in addition to the Ground Lease, the City will enter into a development
agreement with Servitas to govern the development of the Project; and
WHEREAS, on September 23, 2020, the Finance and Economic Resiliency
Committee provided guidance on the Project and the Term Sheet, and unanimously
recommended that the Administration negotiate a Ground Lease and Development
Agreement consistent with the Term Sheet, for the City Commission's consideration; and
WHEREAS, pursuant to Section 1.03(b)(4) of the City Charter governing leases of
ten years or longer of City-owned property, the Ground Lease requires approval by a
majority 4/7 vote of all members of the Planning Board, and a 6/7 vote of the City
Commission; and
WHEREAS, pursuant to the favorable recommendation of the Finance and
Economic Resiliency Committee, the Administration recommends that the City
Commission adopt this Resolution, and direct the Administration to negotiate a
Development Agreement and Ground Lease, consistent with the Term Sheet, with the
final agreements subject to prior approval of the City Commission.
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 accept the recommendation of the Finance and Economic Resiliency
Committee at its September 23, 2020 meeting, pursuant to Invitation to Negotiate (ITN)
2019-099-KB, for the development of the Collins Park Artist Workforce Housing Project
(the "Project"), and approve the term sheet for the Project attached as an Exhibit to the
Commission Memorandum accompanying this Resolution; further, directing the
Administration to negotiate a development agreement with Servitas, LLC, and ground
lease with Community Finance Corp., consistent with the Term Sheet, with the final
agreements subject to prior approval of the City Commission; and further, refer the
proposed Project and the foregoing agreements to the Planning Board for review, in
accordance with the requirements of the City Charter and City Code.
PASSED and ADOPTED THIS 19 day of October, 2020.
ATTEST:
d ' PPOVED
I ' AS TO
RAF EL . GRANADO, CITY CLERK DAN GELBER, MAYOR FORM&LANGUAGE
6 &FOR EXECUTION
6
IN(ORPn ORATEDO 0% _ ° Z
ri r CityAttomey a Dat
Resolutions-C7 C
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 14,2020
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS
SEPTEMBER 23, 2020 MEETING, PURSUANT TO INVITATION TO
NEGOTIATE (ITN) 2019-099-KB, FOR THE DEVELOPMENT OF THE
COLLINS PARK ARTIST WORKFORCE HOUSING PROJECT (THE
"PROJECT"), AND APPROVING THE TERM SHEET FOR THE PROJECT
ATTACHED AS AN EXHIBIT TO THE COMMISSION MEMORANDUM
ACCOMPANYING THIS RESOLUTION; FURTHER, DIRECTING THE
ADMINISTRATION TO NEGOTIATE A DEVELOPMENT AGREEMENT
WITH SERVITAS, LLC, AND GROUND LEASE WITH COMMUNITY
FINANCE CORP., CONSISTENT WITH THE TERM SHEET, WITH THE
FINAL AGREEMENTS SUBJECT TO THE PRIOR APPROVAL OF THE
MAYOR AND CITY COMMISSION; AND FURTHER, REFERRING THE
PROPOSED PROJECT AND THE FOREGOING AGREEMENTS TO THE
PLANNING BOARD FOR REVIEW, IN ACCORDANCE WITH THE
REQUIREMENTS OF THE CITY CHARTER AND CITY CODE.
RECOMMENDATION
Accept the FERC recommendation and proposed term sheet, authorize negotiation of a
development agreement and ground lease for consideration by the City Commission, and direct
the Planning Board to review the agreements.
BACKGROUND/HISTORY
In September 2016, per Resolution No. 2016-29547, the City Commission selected The
Concourse Group to identify public-private partnership (P3) opportunities for the development
of workforce/affordable housing projects on City property, including a Design Criteria Package
for the Collins Park Parking Garage/Housing facility, spanning both of the City lots located east
and west of Liberty Avenue.
In December 2016, Resolution No. 2016-29679 approved a GU height waiver for the Collins
Park Parking Garage and Workforce Housing project (which, at the time, was being developed
as one joint project), finding that a waiver was necessary in order to provide optimal
development, and to allow for maximum capacity for artist housing. Subsequently, an alternative
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route was chosen to expedite the garage project to the west of Liberty Ave., and separately bid
out a stand-alone P3 project for workforce housing on the eastern lot, otherwise known as
surface lot"P51" and located at 224 23 Street.
In January 2019, the City issued ITN 2019-099-KB for an artist workforce housing facility on
surface lot P51. The solicitation attached The Concourse Group's Collins Park Workforce
Housing Study, which the City Commission incorporated as part of its"direction, proposing one
floor of residential use by ArtCenter/ South Florida and ground floor studios dedicated for use
by local artists. In addition, the City Commission proposed the project might also include two
residential floors for Miami City Ballet (MCB). Following issuance of the ITN,ArtCenter notified
the City that it was no longer interested in partnering on this project after having acquired a
property within the City of Miami.
On July 17, 2019, Resolution No. 2019-30908 authorized simultaneous negotiations with both
ITN proposers. Following withdrawal from the process of Atlantic Pacific Communities, LLC,
the City Commission directed negotiation with the sole remaining proposer, Texas-based
Servitas, LLC, a developer of on-campus student housing, including a P3 with F I U at its
Biscayne Bay campus.
Servitas and the Administration negotiated a term sheet dated September 17, 2020 (the "Term
Sheet"),which is attached as Exhibit A.
On September 23, 2020, the Finance and Economic Resiliency Committee reviewed the Term
Sheet, provided guidance on the Project, and unanimously recommended that the
Administration negotiate a Ground Lease and development agreement consistent with the Term
Sheet for the City Commission's consideration.
ANALYSIS
Overview of the Proposal and Project Delivery Structure:
Servitas proposes a 7-story building designed by Shulman&Associates and PGAL Architects:
1. ground floor space for either commercial retail or artist studios;
2. 30-bed dormitory on the second floor for the Miami City Ballet (plus two private units for
MCB staff);and
3. 80 workforce housing units(mix of studios, 1 BRs, and 2BRs)on the remaining five floors.
One of the key aspects of the Servitas proposal that distinguishes its proposal from other
public-private proposals the City has received is that this Project would ultimately be not-
for-profit in character, in that it would be leased by a non-profit entity and used for not-
for-profit purposes at all times.
As proposed, the City would enter into a long-term ground lease for the entire property with a
nonprofit 501(c)(3)organization, Community Finance Corporation(the "Ground Lessee"),which
would finance the design and construction of the Project with tax exempt bond financing (which
would be non-recourse to the City, with principal and interest payable solely from Project
revenues).
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Based on the information provided to the City by Servitas, Community Finance Corporation, the
proposed Ground Lessee, is a not-for-profit Arizona corporation organized and operated
exclusively for the purpose of assisting governments and nonprofits with the construction and
financing of public buildings, and accordingly, is operated exclusively for charitable purposes.
Community Finance Corp. has participated in over $1.3 billion in P3 projects throughout the
United States, including a wide range of governmental and nonprofit uses, such as office
facilities, parking structures, public safety/correctional facilities, university facilities, privatized
student housing, and infrastructure.
In addition to the Ground Lease, the City would enter into a development agreement with
Servitas to govern the development of the Project. Once the Project is constructed,the Ground
Lessee would have overall responsibility for the operation of the Project.
Under the proposed structure, Servitas would earn a Development Fee for delivery of the
completed Project to the Ground Lessee, with its fees to becovered by the tax-exempt bonds
issued by the Ground Lessee to finance the Project. See Exhibit B. Following completion of
the Project, Servitas would separately contract with the Ground Lessee to provide asset
management services to the Ground Lessee.
Accordingly, if the Project proceeds to a Financial Closing, the Project would be
constructed, and managed,with limited City financial participation, and the City would not
be responsible for payment of any of Servitas's fees or for Project development costs, with
limited exceptions discussed more fully herein. Specifically, Servitas proposes for certain pre-
development environmental expenses to be covered by the City, subject to reimbursement of
the City from bond proceeds at Closing or from surplus revenues later once the Project is
completed. See Section 3 below for further explanation.
Once the Project is constructed, the Ground Lessee would be solely responsible for the
operation and maintenance of the Project, with the intent that the Project would be entirely self-
supported by the rental revenues the Project will generate. To the fullest extent possible under
applicable law, the Project would be structured to be exempt from ad valorem taxes, pursuant to
exemptions that are available for workforce/affordable housing, and/or otherwise available for
properties leased and used for exempt not-for-profit purposes.
To the extent the revenues of the Property generate surplus revenues (after payment
of all operating expenses, maintenance reserves, and debt service reserves), such
revenues would solely inure for the benefit of the City or any other not-for-profit entity
designated by the City to receive surplus revenues. See Section 1 below for further
explanation.
Servitas's proposed Term Sheet is attached as Exhibit A. A summary of the key items brought
for Finance Committee input and direction, along with the Administration's recommendation, is
set forth more fully below.
1. Designation of Not-for-Profit Entities to Receive Any Net Proceeds Generated
by the Project, After Payment of all Project Expenses, Debt Service and
Reserves.
As set forth above, one of the key features of the Servitas proposal is that the not-for-profit
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Ground Lessee proposes that any net proceeds, if any, generated from the Project (after the
payment of all operating expenses, debt service, and maintenance reserves) shall be dedicated
for use by the City Commission or any other not-for-profit entity designated by the City to
receive the "surplus revenues." A summary of the pro forma for the Project is attached
as Exhibit B hereto and indicates that by Project Year 3 (2022-2023), the Project may generate
approximately $329,432 in surplus revenues annually. The Administration requests direction
from the FERC on this issue, as it implicates a pure policy question as to the proposed uses of
funds.
Based on the proposal submissions received from Servitas, Miami City Ballet will pay rent for
its use of the second-floor dormitory space, in the approximate annual amount of $363,841 in
the first rental year (Project Year 3). This amount is consistent with the amounts Miami City
Ballet has previously advised the City that it spends annually in connection with housing for
dancers and MCB participants.
From a financing perspective,the guaranteed rental income from the lease of an entire floor to a
single entity is beneficial to the Project, as stable rental flows reduce the financing risks
associated with the Project. As part of the parties'recent discussions, the Ballet indicated that it
would consider providing a letter of credit or some other form of security to guarantee its rent
obligations, or the additional costs to the Project in the event the Ballet no longer uses the
dormitory and the entire floor must be converted to housing units. Subject to Finance
Committee direction, the Administration will continue to address this issue with the MCB as part
of the overall negotiation of the Project agreements.
Miami City Ballet has proposed that it be designated as a Project beneficiary to receive surplus
revenues from the Project, so that if the Project is successful and generates net proceeds, the
Project would serve to potentially subsidize and reduce Miami City Ballet's rental obligations
with respect to the dormitory floor, and thereby free up funds for the Miami City Ballet to
enhance its cultural and charitable mission to provide dance education and cultural
programming, in close proximity to its headquarters in Collins Park.[1]
If the City Commission were inclined to designate MCB as a beneficiary, the Administration
would propose that, at a minimum, the City also be designated a beneficiary, to permit the City
to either: (1) utilize revenues to activate cultural programming on the ground floor of the Project
or elsewhere in the Collins Park neighborhood (see Section 2 below), (2) further reduce the
required rent for the workforce housing tenants in the building, or (3) support other
workforce/affordable housing projects in the City. It should be noted that Servitas's pro forma
assumes that in the second rental year (Project Year 4), the "surplus revenues" generated by
the Project exceed the amount of annual rent paid by Miami City Ballet.
The Administration would also propose that, if the City Commission approves for the City to
undertake any financial commitments with respect to the Project (i.e., to cover a portion of
expenses for environmental remediation and other site preparation), any surplus revenues
should first be paid to the City prior to being distributed to MCB or any other entity, to permit the
City to recoup its costs.
Update: The FERC stressed the importance of reduced financial costs incurred by the City.
Therefore, the Committee directed that any development expenses paid for by the City,
including potential environmental remediation, should be remunerated as early as possible,
Page 209 of 1576
whether at Financial Closing or by priority repayment using the rental revenues. Further, the City
should use any excess rental revenues to subsidize its programming of the ground floor tenant
space.
2. Use of Ground Floor Space, Either for Revenue-Generating Retail to Support
the Financing of the Project or for Cultural Activation Purposes.
Servitas has indicated a willingness to work with the City with respect to the programming for the
ground floor of the Project, provided, however, that no matter how the ground floor space is
used, the ground floor needs to generate rental income in order to support the financing for the
Project. The most recent proposal included 5,400 sf of revenue-generating retail and/or artist
studio space, with 2 separate lobby entrances, one for the Miami City Ballet dormitory and one
for the remaining residential housing floors.
Subject to direction from the City Commission, one option with regard to the ground floor space
is for the City to enter into a master sublease (or have a right of first refusal to do so), for the
entire ground floor (subject to City payment of ground floor rent), in order to curate an
appropriate street level activation compatible with the Collins Park Arts and Culture District. To
this end, Servitas has proposed annual rent of$100,000 — $150,000 (per square foot rental of
approximately$18-$27).
Update: Recognizing the ground floor use's vital role in neighborhood placemaking, the FERC
confirmed that the City should have the ability, at its option, to program the space. In addition,
the FERC recommended that surplus revenues from the housing component should be used to
subsidize the City's costs in renting the space from the landlord.
3. Servitas Request for City to Pay for Environmental Remediation Costs for
the Project, Subject to Reimbursement from Bond Proceeds or Project
Revenues.
Servitas will be responsible for obtaining and paying for environmental reports necessary to
determine the scope of work and associated costs of any required environmental remediation,
subject to City prior approval. Servitas proposes that it will cover initial costs up to $20,000 (as
a Project reimbursable cost), with the City responsible for amounts in excess of $20,000, up to
a maximum City contribution for environmental expenses of $200,000. In the event that the
parties anticipate that remediation costs would exceed $200,000, the City would have a right to
terminate the development agreement.
Any amount expended by the City with respect to any of the foregoing would be reimbursed to
the City at Closing (to the extent such costs are financeable), or from the net revenues of the
Project, with the City to receive first priority for payment of such expenses from the net
revenues of the Project.
4. Request for City Reimbursement of Servitas Development Expenses if the
Development Agreement is Terminated.
Servitas anticipates that it will expend up to $280,036 through the regulatory Historic
Preservation Board approval for the Project (anticipated for Spring 2021), and $1,306,250
through the Financial Closing (anticipated for Winter 2021). The developer's Pre-development
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Budget is attached as Exhibit C.
Servitas has proposed that the City be responsible for reimbursement of such pre-development
expenses if the development agreement is terminated because the Project is rendered
financially unfeasible and cannot proceed. Specifically, Servitas proposes:
(i) Prior to the HPB approval for the Project, in the event the Project cannot proceed
due to unforeseeable conditions, the City would be responsible for all Pre-Closing
expenses incurred, approximately$280,036, and a portion of the Development Fee that
would have been earned as of the date of termination, which fee could be up to
$387,385 (40% of Servitas's proposed Development Fee). Collectively, the costs that
Servitas proposes the City would be responsible for could amount up to approximately
$667.421.
(ii) After HPB approval but prior to Financial Closing, in the event the Project cannot
proceed due to unforeseeable conditions, the City would not be responsible for any
portion of the Development Fee, but would be responsible for all Pre-Closing Expenses
(in the amount of$1.306,25().
Historically, the City has not agreed to reimburse a developer for its development costs. I n prior
development agreements, the City has addressed this issue by agreeing to limit the City's ability
to terminate an agreement for convenience, in order to provide a developer with the certainty
that the City would not, in its proprietary capacity, simply"change its mind" after the developer
has incurred significant costs to advance a project. As all projects involve development risk, the
City's position in prior public-private projects has been that it is for the developer, and not the
City, to undertake such risks.
Notwithstanding the above, none of the prior development agreements the City entered into
were structured to provide the City with all of the net revenues of the Project, and
accordingly, all of the potential upside, for the entire term of the lease. For this reason, the
Administration requests direction as to the proposed approach.
At a minimum, the Administration would recommend that, as part of its continued discussions
with Servitas, the parties should negotiate a cap on the City's monetary exposure and/or limit
any allocation of risk to the City to the early stages of the Project only (i.e., prior to HPB
approval). In addition, to mitigate risks, as part of discussions, the parties should develop very
clear limitations or parameters for the types of unforeseen circumstances which could give rise
to any City payment obligation if the Project could not ultimately proceed.
Update: pursuant to FERC direction, during negotiations for the Development agreement, the
Administration will strive to further limit the City's financial risks related to any Project
contingency. The parties are making good progress to reduce the City's risk beyond what was
presented at FERC and the outcome of negotiated terms will be brought before the City
Commission when it reviews the Ground Lease and Development Agreement.
5. Request for Waiver of Permit Fees, Impact/Concurrency Fees for the
Project
In February, following review of the fees applicable to workforce housing projects, the Finance
Committee declined to recommend any further reduction in the permit fees on
workforce/affordable housing projects, with the exception of the Technology and Training Fee
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(which is generally calculated as 6%of the total fee for building, electrical, mechanical, plumbing
and demolition permits). On September 16, the Commission voted favorably upon First
Reading of an ordinance codifying this Technology and Training Fee waiver.
The City would need to amend the City's Land Development Regulations and City Code to
accomplish further reductions to the fees applicable to affordable/workforce housing
projects. Until architectural plans are prepared, the amount of fees associated with permitting
and entitlement of the Project is unknown.
6. Request for"GU" Waivers to Address Minimum Unit Size for the Studio Units
and Required Parking for the Project and Library.
Servitas seeks three LDR waivers: (1) 'required minimum unit size" for the 22 studio units (as
Servitas is proposing 387 sq. ft. per studio unit, rather than the required 400 sq. ft. per unit); (2)
"required off-street parking" for the project (approximately 58 spaces); and (3) "required off-
street parking" for the Miami Beach Regional Library(approximately 24 spaces), which spaces
are currently satisfied on P51 and will be eliminated by development of the project.
Under the City Code, to be eligible for a GU waiver, a property must be either(1) governmental
owned or leased, and wholly used by, open,and accessible to the general public, or(2) used by
not-for-profit, educational, or cultural organizations. As proposed, the project would qualify for a
GU waiver.
In addition to satisfying the Code's requirements for GU waivers, the reduction in unit size and
required parking are the primary incentives prescribed in the City's workforce housing
regulations. The City Commission previously granted this Project a GU height waiver,
specifically"to allow for maximum capacity for artist housing" (Resolution No. 2016-29679), as
well as a loading space waiver to the parking garage facility in recognition of physical constraints
inherent in the Museum Historic District and Miami Beach Architectural District(Resolution No.
2018-30560).
The relatively small lot size of P51 does not lend itself to_viable redevelopment under the
applicable development standards. Considering that the Project evolved from the CiWs initiative
to redevelop parking assets into mixed-use housing and parking facilities, The Concourse
Group originally intended that the housing component's off-street parking requirement would be
satisfied in the adjacent garage facility. Therefore, staff supports the waivers, including any
waiver of parking for the library that was previously satisfied on P51.
Update: The FERC supported these waivers for the reasons put forth by staff.
7. "Waterfall" List of Eligible Residents for the Workforce Housing Units, in the
Event of Insufficient Demand from Artists and Educators
At the recommendation of The Concourse Group study, the City Commission directed that the
Project cater to employees of artistic institutions and area educators employed in the City of
Miami Beach. (The study recommended broad, inclusive definitions for workers from either
industry that should qualify, e.g. administrators and support staff in nonprofit institutions). These
liberally construed definitions will apply at the Project and appear in Section 10 of the Term
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Sheet).
I n order that the units not remain vacant, and to ensure that the Project is financeable and has
the ability to generate stable rental income streams to meet debt service obligations, Servitas
has requested that, following a specified (to be negotiated) period of marketing to artists and
area educators,,the Project be permitted to lease the individual rental units to other persons
meeting the income criteria for workforce housing. Per City Code, prior to leasing, the building's
property manager must provide the City in advance with a marketing plan and offering notice
and comply with annual requirements for tenant roster verification by the Housing department.
Update: The following incorporates the FERC's input on a proposed "waterfall" list to prioritize
eligible residents:
• Tier 1: area educators and persons actively involved in the practice of creative arts
• Tier 2: nurses, law enforcement, firefighters, and personnel employed by the City of
Miami Beach.
• Tier 3: any income-eligible worker employed in the City of Miami Beach in the hospitality,
culture,or entertainment industry
• Tier 4: income-eligible workers, regardless of city of employment
[1] The foregoing benefits for the MCB presume that the MCB will ultimately participate in the
Project, and confirm its long-term commitment via a master sublease or other agreed-upon
arrangement for its use of the dormitory floor. In the event MCB determines that it cannot
participate in the Project, the second floor would be designed to accommodate additional
workforce housing units. City staff will work with Servitas and MCB with regard to the timing for
confirming MCB's participation as early as possible in the process, to avoid additional costs or
delays associated with the necessary design changes that would be required to convert the
dormitory floor to regular workforce housing units.
FINANCIAL INFORMATION
The City's responsibility is limited in amount and discussed in Analysis sections 3 and 4 above. The
substantial majority of development costs will be funded by the Developer, with limited operational
costs to the City described in section 2. It is intended that the City's costs would be reimbursed at
specific stages of Project development and operation.
CONCLUSION
Subject to direction as to the policy and business issues outlined in this Memorandum, the
Administration recommends that the City Commission approve the term sheet in concept and
authorize the Administration to continue its negotiations and develop the appropriate
agreements for the City Commission's consideration.
Pursuant to Section 1.03(b)(4) of the City Charter governing leases of ten years or longer for
City-owned property, the Ground Lease requires approval by a majority 417 vote of the Planning
Board and 6/7 vote of the City Commission. Accordingly, the Administration requests that the
City Commission refer the Project and draft agreements to the appropriate land use boards for
review, in accordance with the requirements of the City Charter and City Code.
Applicable Area
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South Beach
Is this a "Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Strategic Connection
Mobility- Increase housing options for current and future residents.
Legislative Tracking
Economic Development
ATTACHMENTS:
Description
❑ Attachment A-Term Sheet dated 9-17-20
❑ Attachment B - Pro Forma
❑ Attachment C - Predevelopment Budget
❑ Attachment D - Preliminary Renderings
❑ Resolution
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Servitas / Collins Park Artist Workforce Housing Term Sheet
1.Project Description("Project")
a. Approximate total number of units, excluding housing for the Miami City Ballet ("MCB"); broken out, and
approximate sizes:
• 80 units of Workforce Housing:
o Studio 387 sq.ft.average 22 units
o 1B/1B 524 sq.ft.average 25 units
o 2B/2B 722 sq.ft.average 33 units
• 32 Beds of dormitory housing for MCB(on a single floor)
b. Proposed building uses and approximate square footages:
• Stories:7 floors, 75'maximum height
o Ground floor-revenue-generating Retail or Cultural space-5,400 Gross Square Feet("GSF")
+2,100 GSF Housing Lobby+860 GSF MCB Lobby
o 2nd Floor MCB dormitory space—12,733 GSF
o 3RD through 7T"Floors of Workforce Housing 12,068 GSF each
o Total GSF for the project=82,098 GSF
c.The proposal is contingent upon the City Commission approving a GU Waiver, to waive the 400 SF minimum
unit size set forth in the City Code, as the proposed 22 Studio units would each have a minimum unit size of 387
SF.
d. Project Parties and Project Agreements:
Developer:Servitas,LLC. City will enter into a Development Agreement with Servitas(the"Developer")to provide
for Servitas to be responsible for the overall delivery of the Project (including contracting for the design and
construction of the Project),in accordance with the terms of the Development Agreement and Ground Lease.
Ground Lessee: Community Finance Corp.,a 501(c)(3) entity, headquartered in Tucson,Arizona. City will enter
into a long-term Ground Lease with Community Finance Corp., which will be responsible for obtaining the tax-
exempt financing for the Project. Once the Project is completed,the Ground Lessee will also be responsible for
the operation and maintenance of the Project pursuant to the Ground Lease, and will engage Servitas
Management Group, LLC, as asset manager, to provide overall asset management services, and a property
manager for the day-to-day operation of the Project.
Financing: Citigroup, Inc.,as underwriter. The Project would be financed with tax-exempt revenue bonds,to be
issued by the Ground Lessee,with the financing to be non-recourse to the City. The Project financing agreements
will likely include a Loan Agreement between Ground Lessee and Citigroup, Inc., the underwriter selected by
Servitas and the Ground Lessee for the Project financing, along with a Trust Indenture to govern how Project
revenues may be used, among other terms. The Financial Closing (as defined in the Development Agreement)
would take place once regulatory approvals for the Project are obtained (i.e., HPB approval and Building Permit)
and other conditions(to be set forth in the Development Agreement)are satisfied.
Sub-lessee of Dormitory Floor: Miami City Ballet. Ground Lessee will likely enter into a long-term sub-lease of
the dormitory floor with MCB,to permit MCB to be responsible for coordinating the individual rentals of the MCB
dormitory units to MCB dancers or other persons participating in MCB programs.
1
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Leasehold Condominium Structure for the Project: The parties expressly agree to structure the transaction so
that, to the fullest extent possible under applicable law, the Project will be exempt from ad-valorem taxes. In
order to obtain such exemptions, the Project may, if necessary, be subdivided as a leasehold condominium
(subject to the Ground Lease),to provide for:
(1)one leasehold condominium unit for the entire ground floor space(which will be either retail or cultural
space, subject to City Commission approval),
(2)one leasehold condominium unit for the MCB dormitory floor(Floor 2);and
(3)one leasehold condominium unit for the entire workforce housing component(Floors 3-7).
2.Miami City Ballet Participation in the Project
a.As in the original proposal and consistent with the ITN and post-award discussions with the MCB, Servitas, LLC
("Developer" or "Proposer") has satisfied all the MCB's dormitory program requirements, especially the items
relating to life safety,total number of beds,and the communal space components.
b. To accommodate MCB's participation, the building will have a dedicated and secure floor for MCB, with
exclusive elevator access to its floor via keycard.This floor will be leased using one of a few possible structures,
including,but not limited to the following,all of which are contingent on maintaining the tax-exempt status of the
Project:
• MCB dormitory floor master sub-lease between the MCB and the Ground Lessee;or
• Direct leases between Ground Lessee and Eligible Residents for the MCB floor, with a management
agreement or other agreement between the Ground Lessee and MCB,to permit MCB to manage and
maintain overall responsibility for the dormitory floor and the MCB dancers.
c.As an alternative to the MCB using the dorms,if needed,in the future,the MCB dormitory space is designed for
easy conversion to workforce housing. The Development Agreement will include an outside date by which the
MCB must confirm its binding participation in the Project,to permit the Ground Lessee/Developer to obtain the
appropriate HPB approvals(for either the dormitory space,or workforce housing)and required financing for the
Project.
3.Project Proceeds/Eligible Residents
a.The Developer's proposed tax-exempt financing structure(discussed in Section 4 below) contemplates that the
Project will be 100%self-supported by rental revenues. As such, the Project will not require the City or MCB to
share or pay any capital/operating costs out of pocket.All operating expenses and debt service payments will be
covered by the Project revenue. Subject to City Commission approval,the City and potentially,a non-profit entity
(such as MCB)shall be designated in the Ground Lease and/or other Project agreements(the"Surplus Entity")to
receive all of the annual net proceeds of the Project, if any,after operating expenses and debt service payments
are made and required reserves are met,so that the proceeds can be used by the City(or MCB or any other Surplus
Entity, if applicable) as desired — i.e. funneled back into the Project to maintain or decrease rents, to provide
scholarships for dancers, or to support other ballet projects and/or cultural initiatives, such as activation of the
ground floor space for the Project.
b. Assuming the City Commission approves a"Surplus Entity"other than the City,any costs expended by the City
for environmental remediation for the Project, as provided in Section 8 hereof, shall be reimbursed to the City
first,prior to any surplus revenues being distributed to any other party or used for any other purpose.
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c.The unit breakdown for workforce housing is intended to be evenly divided between tenants earning less than
or equal to 80% of the area median income ("AMI") and tenants earning between 80 and 120%AMI, provided,
however, that the priority for booking of tenants shall be "Artists," Area Educators, and employees of cultural
organizations,in all instances earning less than 120%AMI,as set forth in Section 10 below.This prioritization shall
be established in the Project agreements.The current prioritization is as follows:
Tier 1—Artists and area educators
Tier 2 — Nurses, law enforcement, firefighters, and other emergency service
providers employed in the City of Miami Beach
Tier 3— Eligible workers employed in the City of Miami Beach in the hospitality,
culture,and entertainment industries
Tier 4—Any eligible workers employed within the City of Miami Beach
Eligible workers are those from qualified households, as defined in 58-501 of the City Code. Students must be
enrolled or accepted for enrollment at an institution for the purpose of obtaining a degree, certificate, or other
recognized education credential offered by that institution. Monthly rent for workforce housing tenants shall not
exceed 30%of the then applicable AMI.
4.Project Financing
a.The Project will be completely financed through the sale of tax-exempt revenue bonds(with the exception of a
small taxable portion should it be required). Under the proposed structure, Community Finance Corp., as the
Ground Lessee under an unsubordinated Ground Lease with the City,will be the tenant and owner of the leasehold
improvements,and will be responsible for obtaining the financing for the Project.
b. The Ground Lessee would operate the Project in accordance with an annual budget, approved by a Budget
Oversight Committee (a committee which would be established pursuant to the Ground Lease or other relevant
Project agreements). The Budget Oversight Committee shall include a representative from the Lessee, the
property manager, Servitas Management Group, LLC("SMG"-as asset manager), the City and the Surplus Entity
(if any is designated). After operating expenses have been paid and debt coverage and reserves satisfied,surplus
cash shall be paid to the City/Surplus Entity.The surplus cash flow is not shared with the Developer; rather,it all
flows to the City/Surplus Entity.This financing mechanism results in a project that is not profit driven and allows
the flexibility to allow the City to determine the overall goals for the Project. No grant,tax credit or government
subsidy is assumed or expected under our plan of finance.
c. Except as set forth in Section 8 below with respect to environmental remediation costs,there will be no City
funding or City financing of any kind (including back-up pledges/covenants to budget and appropriate).
d.With tax-exempt bond financing,there should not be an equity contribution from MCB or the City. Subject to
the terms of the Development Agreement, the Developer will advance pre-Closing costs and reimburse itself at
Financial Closing. In the event of a termination of the Project prior to Financial Closing,Servitas proposes for City
to be responsible for payment of Pre-Closing Expenses and Developer's Fee,if termination is prior to HPB approval
for the Project.
e.City's fee interest in the property shall be senior,and not subordinated to,any financing obtained by the Ground
Lessee, and all financing shall be non-recourse to the City and MCB.The financing documents and Ground Lease
will contain certain step-in rights and cure provisions for the bond holders and lender. City maintains its fee
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interest in the land, but the Ground Lessee maintains ownership and control of the leasehold improvements
during lease term.
5. Development-Related Matters/Development Agreement
a. Servitas requests a waiver of the 400 SF minimum unit size requirement in the City Code applicable to the 22
Studio units,as it is proposing for the Studio units to be 387 SF.
b. Given the site constraints associated with the relatively small size of the property, Servitas has requested a
waiver of required parking applicable to the Project,as the waiver would permit Servitas to maximize the number
of workforce housing units that may be constructed as part of the Project. In addition, in order to accommodate
the parking needs of workforce housing tenants in the building, Servitas requests that the City provide access to
up to fifty-eight(58) monthly parking passes at the nearby Collins Park Garage,with the monthly parking passes
available for purchase by the Project's workforce housing residents, at the then applicable City rate, on a first-
come-first-served basis.
c.The City will provide the Project with a waiver or reduction of permit fees, impact/concurrency fees, and utility
connection fees relating to the Project,to the extent currently available under the City Code.
d. Servitas has accepted the City's proposed framework for the development of the plans and specifications for
the Project: as part of approval of the Development Agreement and Ground Lease, the City Commission will
approve the Concept Plan design,and the Developer would otherwise be responsible for all design approvals(i.e.,
HPB) consistent with the Concept Plan design. After regulatory approvals are obtained, the City Manager will
approve the final Plans and Specifications to ensure the Project is being developed consistent with Concept Plan
design and the Project requirements, and the City Manager will also approve material modifications thereto. To
the extent there are any licensing fees or inspection fees to be paid for work performed on the Project(other than
building permit fees),Servitas would request that those be waived.
e. Development Agreement. Developer would ask that, as soon as practicably possible, the City and Developer
enter into a Development Agreement to define the parties' duties and obligations prior to financial closing. The
following is a brief description of essential terms which are currently under negotiation.
i.The current budget for costs to be incurred prior to closing("Pre-Closing Expenses")and general timeline
for when the Pre-Closing Expenses will is attached hereto as Exhibit"D".
ii.Development Fee shall be equal to 7%of the total hard and soft costs of construction.Based on current
pricing,the total Development Fee will be approximately$968,464.This value is preliminary and based
on current pricing for the design and construction of the Project and is subject to change.
iii.Development Fee shall be earned throughout the Pre-Development process leading to financial closing,
as follows:
Milestone Description Development Fee Earned
Schematic Design Approval 20 '0
Design Development Approval 40%
HPB Approval 60%
100%Construction Drawings 80%
Approval
issuance of the Preliminary Offering 100%
Statement
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iv. Prior to the HPB approval for the Project, in the event the City terminates the Project or the parties
mutually agree that the Project is not financially feasible due to unforeseeable conditions. Servitas
proposes that the City reimburse Servitas for all Pre-Closing Expenses incurred and such portion of the
Development Fee earned,as of the date of termination.
v. After the issuance of the HPB approval for the Project but prior to Financial Closing, in the event the
City terminates the Project or the parties mutually agree that the Project is not financially feasible due
to unforeseeable conditions, Servitas proposes that the City reimburse Servitas for all Pre-Closing
Expenses, but in such event,City shall not be responsible for any portion of the Development Fee.
6. Development Schedule.
The development schedule below includes a standard anticipated permitting period.
a. HPB/DRB approval — as soon as possible — within six (6) months of execution of the Pre-Development
Agreement.
b.Financial Closing—Ten(10)months after HPB/DRB Approval.
1. The Financial Closing will be subject to certain Closing Conditions, including obtaining all regulatory
approvals for the Project and issuance of the Building Permit for the Project. All of the documents
relating to the Project Development, including, but not limited to the Ground Lease, Loan Agreement,
Trust Indenture,Construction Contract and Design Services Agreement,will be executed at the Financial
Closing.
• c. Substantial Completion (as defined in the Development Agreement) will be achieved within eighteen (18)
months of Financial Closing,depending on site environmental and geotechnical conditions.
f.Opening and occupancy shall occur thirty(30) days after Substantial Completion.
7.Ground Lease
a. The Ground Lease will be a fifty (50)year lease, with two (2) optional renewals of twenty(20) years each, on
mutual agreement of the City and Ground Lessee,with the form of the Ground Lease to be negotiated and subject
to mutual agreement.
b.Guaranteed ground rent paid to the City will be set at$100 per year, escalating at 3%per annum.Guaranteed
ground rent payment will begin upon Financial Closing and execution of the Ground Lease.
c.As part of the Ground Lease the City will provide the Project with fifty-eight(58)parking spaces for the workforce
housing portion of the Project or secure a waiver of the parking space requirements.
8.Condition of Property/Environmental
a.The Developer,will accept the property in its AS IS condition,subject to review of the environmental Phase I and II and
geotechnical reports to be obtained for the Project.:
The Phase I, Phase II and geotechnical report (collectively,the "Environmental Reports"), shall be completed as early as
possible,to permit the parties to budget accordingly and/or determine whether the costs of environmental remediation
or related work render the Project unfeasible. Developer shall be responsible for obtaining and paying for the
Environmental Reports,subject to City's approval of the costs thereof(which costs may be subject to reimbursement as
provided below).
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Following completion of the Environmental Reports,Developer shall estimate the costs for all work that may be reasonably
anticipated for any environmental restoration, stabilization or remediation for the Project, including an appropriate
contingency(the "Environmental Costs"),which estimate shall be subject to City's review and approval.
The Environmental Costs shall be borne by the City and Project,as follows:
The Project shall be responsible for the initial Environmental Costs for the Project (inclusive of the costs of the
Environmental Reports), up to the aggregate amount of$20,000.00(the "Baseline Environmental Costs").
City shall be responsible for Environmental Costs in excess of the Baseline Environmental Costs, up to the aggregate
amount of$200,000.00("City's Maximum Contribution"). The City's Maximum Contribution,or any portion thereof,spent
on the environmental restoration,shall be reimbursed to the City either at closing or as part of the surplus waterfall flow
of funds,prior to the Surplus Entity receiving any.payment(or on a split basis,as agreed between the City and the Surplus
Entity).
Following receipt of Servitas's estimate of the Environmental Costs for the Project, if City determines that the estimated
Environmental Costs are likely to exceed the City's Maximum Contribution, City shall promptly provide Developer with
notice thereof,to permit Developer the opportunity to determine whether financing may be obtained sufficient to cover
any amounts in excess of City's Maximum Contribution. If such financing cannot be obtained, either party shall have the
right to terminate this Agreement for lack of funding. In the event of termination of the Development Agreement for lack
of funding,City shall reimburse Servitas for all costs expended by Developer for the Environmental Reports.
If the agreement is not terminated and the Project otherwise proceeds, in no event shall City be responsible for any
Environmental Costs in excess of City's Maximum Contribution.
9.Terms re:Management and Operation of Facility
a. The property manager, in connection with SMG (as asset manager) will market to eligible participants by
outreach activities targeted to.educators and artists and through partnerships with local art and education groups.
Informing potential residents up front of income stipulations and the proof required thereof will help attract
eligible participants,as each application must meet the AMI criteria through income verification (tax returns and
wage statements).
b.The Project will be responsible for facility maintenance, utilities and standards of operation, including:
i. Maintenance/repairs for all components of the building envelope, including, without limitation, all
mechanical, HVAC, electrical,plumbing systems, roof,elevators and the like).
ii. Lighting
iii. Landscaping
iv.Electric,telephone,internet and data,cable,sanitary sewer,water,stormwater,trash and recyclables,
exterior access door control,
v.Security
vi. Parking
vii.Resident complaints/issues.
viii. City and Ground Lessee to negotiate penalties in lieu of default for failure to achieve maintenance
standards
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a. Maintenance standards shall be provided by the City prior to financial closing and such
standards shall remain in place for the duration of the Ground Lease. Should there be any
changes causing an increase in the operating expenses of the Project, the City shall either
grand-father the Project in under the original maintenance standards or offset the costs of
the modifications to the maintenance standards.
ix. Management of retail spaces
10.Use Restrictions/Project Requirements
a.With the exception of the MCB dormitory floor,the Project tenants will be defined in the Ground Lease between -
the City and the chosen non-profit Ground Lessee as"Eligible Residents" and be limited to the following:
i. Artists, which will be defined to include any person actively involved in the practice of creative arts,
including,without limitation,in the area of music,dance,drama or other performing arts;creative writing;
painting,sculpture, photography, or other fine arts;graphic arts/web design;craft arts; industrial design;
costume design; fashion design; and film, television, radio and/or print production, etc. provided,
however,that in all such cases,the tenants earn up to 120%AMI;or
ii.Area educators(i.e.,teachers or teacher's aides employed by any public or private school in Miami-Dade County
on a full-time or part-time basis)and employees of non-profit or governmentally owned cultural institutions,etc.,
provided,however that all such persons earn less than 120%AMI. However,any unit remaining vacant for at least
sixty (60) consecutive days may be offered and leased to any other individuals earning less than 120% of AMI
(whether or not such individuals are Artists or Area educators) (as allowed by the borrower's charter and
consistent with maintaining the Project's tax-exempt status). The vacant units will be offered to the following
groups, in this order of priority:
Tier 1—Artists and area educators
Tier 2 — Nurses, law enforcement, firefighters, and other emergency service
providers employed in the City of Miami Beach
Tier 3— Eligible workers employed in the City of Miami Beach in the hospitality,
culture, and entertainment industries
Tier 4—Any eligible workers employed within the City of Miami Beach
b. For the above project tenants, monthly rent shall not exceed 30%of the then applicable AMI.
c.The Project does not contemplate short term rentals(defined as rentals of less than six months and a day)for
the individual workforce housing units. The Ground Lease will prohibit daily and other short-term rental
agreements for the workforce housing component of the Project. Short-term leases would be permitted for
qualified eligible residents of the MCB dormitory floor, i.e.MCB summer camp participants, MCB faculty training
groups or other MCB sanctioned groups using the MCB's dormitory space.
11.City Participation
Except with respect to (i) the proposed allocation of environmental costs in Section 8; and (ii) the proposed City
reimbursement of pre-Closing expenses,solely in the event of the termination of the agreement prior to Financial Closing,
the City's contribution will be limited to providing the Ground Lease, and the City will not be responsible for any costs or
expenses related to the development,financing, design, construction, operation or maintenance of the Facility.
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12.Developer termination rights
a.There will be no Developer termination for convenience after the Financial Closing(the"Possession Date").
13.Transfers
a. With respect to transfers of ownership of leasehold interests in the Project or in the Ground Lease,we confirm
our proposal involves no material changes to City's template included in the ITN agreement draft. Though for
financing purposes, bond purchasers will require certain standard "step-in" rights in advance of any default and
termination of the Ground Lease by the City.
b. We confirm no material changes to provisions in City's ITN agreement template re: approval of any new
Acceptable Operator,with such provisions incorporated in the to-be-negotiated Ground Lease.
14.Other
a.The Developer and non-profit Ground Lessee shall comply with all applicable laws in the performance of their
obligations for the project.
b. The Project shall make a one-time contribution to City's AIPP trust fund in the amount of 2% of capital
construction costs,in accordance with City's AIPP Ordinance and be paid at closing from bond proceeds and based
on the hard construction costs included in the construction contract entered into between Developer and the
general contractor. Developer is currently interviewing various candidates to operate as the General Contractor.
The Development Agreement will require City Manager approval of the contractor,for purposes of ensuring that
City's minimum criteria are satisfied, i.e., the contractor must have successfully completed at least one similar
project in the last five (5) years, must have bonding capacity sufficient to bond the entire project, and the like.
The Ground Lessee, as a not-for-profit entity, will work with Developer to structure the Project construction
agreements to exempt the Project construction and Furniture, Fixture & Equipment ("FF&E") from sales taxes,
property taxes other than ad valorem taxes,assessments and other taxes and fees not applicable to not-for-profit
owners.
c. The Project will pay for the required public hearing notices to affected property owners, Miami Herald public
hearing advertisements, BUT NOT any other fees and costs incurred by the City or MCB,including,but not limited
to,outside attorneys',consultants or other professional fees incurred relating to the Project.
15.Other Public Benefits •
a. Our project anticipates the following additional public benefits:
• Servitas is a "HUB" business (Historically Underutilized Business) with minority owners and will make
minority hiring a priority in all our projects.
• The use of art from local artists to decorate the building.
• The Project will be holistically designed with sustainable elements to minimize the Project's impact on the
environment.
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Collins Park Artist Workforce Housing
Summary of Project
Assumptions Stabilized Pro Forma Summary
.
r:.-. u�..:., ., 'r> 2023-2024 .- ,`..044(. _. . ..1L 7 ... .:4ia:;-
Number of Beds 147 Opening Year 2023 Per Unit
Number of Units - 92 Rent growth rate 3.0% Revenues •
Projected Start Date 11/1/2021 Operating expense growth rate 3.0% Gross Potential Rent 24,565 2.259,942 2,324,102 2,390,113 2,458,031
Net Rentable Square Feet 54,650 Rent Structure Monthly Other Income 282 24,095 24,817 25,562 26,329
Gross Square Feet 68,313 Vacancy Rate 6% Less:Vacancy of Retail end Rental Income 6% (144,715) (148.747) (152,894) (157,158)
Efficiency Factor 80%
Net Rental Revenue 24,905 2,291,295 2,355,185 2,420,895 2,488,477
ex adi nti WINEIN...r.22321.: eiO'gini .t1Wid daltiNaoti lnr7ilaltr., . . .. i .. 4 ..:,:41 '3Wi r .-g .
Start Up Expenses 8,696 800,000
Unit T e Monthly Rent Units Bedrooms Bade
Expenses
Dorm room 2-2 $927_ 5 10 10 Marketing&Leasing 93 8,513 8,769 9.032 9,303
Dorm room 2-2 DBL $721 5 10 20 Administrative 183 18,866 17,372 17,893 18,430
FRA Unit $1,545 1 1 1 Property Management Fee 1,245 114,565 117.759 121.045 124.424
Director Unit $2,512 1 1 1 Property Insurance 1,056 97,182 100.097 103,100 106,193
orkforce Houei : Utilities 454 41,764 43.017 44,307 45,637
Studio-80%AMI 51,280 10 Payroll 1,048 96,379 99,270 102,248 105,315
1 bed-80%AMI $1,372 12 Residence Life Payroll - 0 0 0 0
2 bed-80%AMI $1,646 17 Residence Life • 0 0 0 0
Studio-120%AMI 51,920 10 Common Area&Amenities 210 19,276 19,854 20,450 21,063
1 bed-120%AMI $2,058 13 _ Fire&Life Safety 61 5,622 5.791 5,964 6.143
2 bed-120%AMI $2,300 18 Grounds&Landscaping - 0 0 0 0
Repairs&Maintenance Z71 24,898 25,645 26.414 27,206
Turnover 140 12,850 13,236 13,633 14,042
Bad Debt 125 11.456 11,800 12.154 12.519
r 92 22 32 Lasa-Total Operating Expense 4,884 800,000 449,371 462,610 476,241 490,276
Net Opsratinn Income 20,021 (800,000) 1,841,924 1,892,575 1,944,654 1,998,201
501 c3 Owner Expenses
Replacement Reserves 320 29,400 30.282 31.190 32,126
Asset Management Fee 249 22,913 23,600 24,308 25,038
Approx.Bond Term(Years) 30 Total Additional Expenses 1,221 112,313 115,682 119,153 122,727
Addl.Cap.Interest(Mos.) 18
Total Cash Available for Debt Service 18,800 1,729,611 1,778,893 1,825,501 1,875,474
Pro'ect Bud f et
- 1.-4kia..,iaz'jd Gs,44- ,si.:t lkezi ,� 11:ty'"({u,alawnr-._._,.atHir-:{ta. 'lll:tli. '.._....r;_:MU'. ..?, Debt Service
Hard&Soft Prolsct Costs Total Debt Service (1.400.179) (1,399,384) (1,403,093) (1,400,444)
Total Hard Costs 12,796,250 139,090 187 Cashtlow attar Debt Service 3,581 329,432 377,509 422,405 475,030
A&E Fees 870,000 9.457 13 Debt Service Coverage Ratio 1.27 1.30 1.34
FF&E 390,000 4,239 6
IT and Voltage 600,000 6,522 9 Notes:
Construction Administration 255,925 2,782 4 (I)Debt service reserve and capitalized interest we funds rat aside for investor security and we returned to the pgect if unused.
Predevelopment Costs 190,000 _ 2,065 3 (2)NI assumptions era based on limited project design and scope Information and as such the assumed costs are subject
Permits,Inspections,and Fees 655.000 7,120 10 to change asprojstparameters become bather defined.
Start Up Expense 800,000 8,696 12
Development Contingency 1.139,813 12,389 17 This preliminary proforma is for illustrative purposes only and is based on specific assumptions,all of which
Developer Fee 968,464 10,527 14
Total Hard&Soft Costs 18,665,451 202,885 273 are subject to change. The information contained herein is proprietary and should remain confidential. Any
and all deadlines or milestones,contained herein are for modeling purposes only and are subject to change
Financing Costs&Project Escrows based on negotiations,closing dates,market volatility and final design review and constructability analysis.
Cost of Issuance-Bonds 1,510,258 16.416 22 Development budgets and operating statement will require refinement through collaboration and
Debt Service Reserve 1,447,423 15,733 21
Capitalized Interest 2,225,367 24,189 33 negotiation.All final agreements and proformas shall take precedence and govern the actual development
of the project.
Total Financing&Related 5,183,048 58,337 76
ESTIMATED TOTAL BOND ISSUANCE 23,848,499 259,223 Page 223 0/157.0
JERVITAS
1of6 :.CiL_rC, Ali ItEM ISTA11 S[RY!f_[S 9/18/2020
Confidential
Collins Park Artist Workforce Housing
Operating Pro forma
Project Year: Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Fiscal Year: FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032
Academic Year: 2023-2024 20242025 2025-2026 2026-2027 2027-2028 2028-2029 2029.2030 2030-2031 20314032
prams 1 2020 2023
Academic Revenue Monthly Rent Monthly Rent
Miami City Ballet Bads By the Bed By the a Bed Ballet rent increases 2%per year.Potential 35 year Master Lease.
Dorm room 2-2 10 $927 $1,013 121,555 123,986 126,466 128,995 131,575 134,206 136,891 139,628 142,421
Dorm room 2-2 DBL 20 5721 $788 189,085 192,867 196,725 200.659 204,672 208,766 212.941 217.200 221,544
RA Unit 1 $1,545 51,688 20,259 20,664 21,078 21,499 21,929 22,368 22,815 23,271 23,737
Director Unit 1 $2,512 $2,745 32,942 33,601 34,273 34,959 35,658 36,371 37,098 37,840 38,597
Workforce Housing Units By the Unit Br the Unit
Studio-80%AMI 10 $1,280 $1,399 167.843 172.878 178,064 183,406 188,909 194.576 200,413 206,426 212,618
1 bed-80%AMI 12 $1,372 $1,499 215,888 222,365 229,035 235,907 242,984 250,273 257,781 265,515 273,480
2bed-80%AMI 17 $1,646 $1,799 366,920 377,928 389,266 400,944 412,972 425,361 438,122 451.266 464,804
Studio-120%AMI 10 $1,920 $2,098 251,764 259,317 267,097 275,110 283,363 291,864 300,620 309,638 318,927
1 bed-120%AMI 13 $2,058 $2,249 350,818 361,342 372,183 383.348 394,849 406,694 418,895 431,462 444,406
2 bed-120%AMI 18 $2,300 $2,513 542,867 559,153 575.927 593,205 611.001 629,331 648,211 667,658 687,687
Gross Potential Rent 147 2,259,942 2,324,102 2,390,113 2,458,031 2,524911 2,599,810 2,673,787 2,749,904 2,828,221
Retail Income(2%annual increases) 5400 sf $261st $28/sf 151,973 155,013 158,113 161,275 164,501 167,791 171,147 174,570 178,061
Less:Vacancy of Retail and Rental Income 6% (144,715) (148,747) (152,894) (157,158) (161,545) (166,056) (170,696) (175,468) (180,377)
Other Income $150/bed $1641bed 24,095 24,817 25,562 26,329 27,119 27,932 28,770 29,633 30,522
Net Rental Revenue 2,291,295 2,355,185 2,420,895 2,488,477 2,557,986 2,629,477 2,703,008 2,778,638 2,856,428
2020 2023
Marketing&Leasing $53/bed $58/bed 8,513 8,769 9,032 9,303 9,582 9,869 10,165 10,470 10,785
Administrative $105/bed $115/bed 16.866 17,372 17,893 18,430 18,983 19,553 20.139 20,743 21,366
Property Management Fee 5.0% 5.0% 114,565 117,759 121,045 124,424 127,899 131,474 135,150 138,932 142,821
Property Insurance $605/bed $661/bed 97,182 100,097 103,100 106,193 109,379 112.660 116,040 119,521 123,107
Utilities 5260/bed $284/bed 41,764 43,017 44,307 45,637 47,006 48.416 49,868 51.364 52,905
Payroll $600/bed $656/bed 96.379 99,270 102,248 105,315 108,475 111,729 115,081 118,533 122.089
Common Area&Amenities $120/bed $131/bed 19.276 19,854 20,450 21,063 21,695 22.346 23,016 23,707 24,418
Fire&Life Safely $35/bed $38/bad 5,622 5,791 5,964 6,143 6,328 6.518 6,713 6,914 7,122
Grounds&Landscaping 5/bed $/bed - - - - - - - - -
Repairs&Maintenance $155/bed $169/bed 24,898 25,645 26,414 27,206 28,023 28,863 29,729 30,621 31,540
Turnover $80/bed $87/bad 12,850 13,236 13,633 14,042 14,463 14,897 15,344 15,804 16,279
Bad Debt 0.5% 0.5% 11,456 11,800 12,154 12,519 12,894 13,281 13,680 14,090 14,513
Total Operating Expense $3057/bed 449,371 462,610 476,241 490,276 504,727 519,606 534,927 550,702 566,944
RIM Opsiliiing111001116 1 1,841,924 1,892,575 1,944,654 1,998,201 2,053,259 2,109,871 2,168,082 2,227,937 2,289,484
501 c3 Owner Expenses S or%of Net Rent
Replacement Reserves $200/bed 29,400 30,282 31,190 32,126 33,090 34.083 35,105 36,158 37,243
Other Non-Operating-NCCD Fees 3.3% 60,000 61,800 63,654 65,564 67,531 69.556 71,643 73.792 76,006
Asset Management Fee 1.0% 22,913 23.600 24,308 25,038 25,789 26,562 27.359 28,180 29,025
Total Additional Expenses 112,313 115,682 119,153 122,727 126,409 130.201 134.108 138,131 142,275
Total Cash Available for Debt Service 1,729,611 1,776,893 1,825,501 1,875,474 1,926,850 1,979.670 2,033,974 2,089,806 2,147,209
Annual Debt Service (1.400,1791 11,399,384) (1,403,093) (1,400,444) (1.402,298) (1.403.093) (1,397,530) (1,401,768) (1,399,384)
Total Debt Service (1,400,179] (1,399,384) (1,403,093) .(1,400,444) (1.402,298) (1,403,093) (1,397,530) (1,401,768) (1,399,384)
Cashflow after Debt Service 329,432 377,509 422,408 475,030 524.552 576,577 636,444 688,038 747,825
Debt Service Coverage Ratio 1.27 1.30 1.34 1.37 1.41 1.46 1.49 1.53
.. '. • • .. ••. ,• . .',.iiia;%.'..iit ..-. �° ..1f 1*. .`YArora l.... .:.0" 4.::-..,. ,. . ::::4,i14.-.. .. -t,,;-.7_,<:-...: •. .t.-1101,of ..RZ:lki. _. .1.a.fA.,"r. ..
Page 224 of 155 E R V ( I A S
2of6 r 0111 GIATi RLiA• ESTAJF SCR/ICES 9/18/2020
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Collins Park Artist Workforce Housing
Operating Pro forma
Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23
FY 2033 FY 2034 FY 2035 FY 2036 FY 2037 FY 2038 FY 2039 FY 2040 FY 2041 FY 2042 FY 2043 FY 2044
2032-2033 2033-2034 20342035 2035-2038 2036-2037 2037-2038 2038-2039 2039-2040 2040-2041 2041-2042 2042-2043 2043-2044
[Remus I
Academic Revenue
Miami City Ballet
Dorm room 2-2 145,269 148,175 151,138 154,161 157,244 160,389 163,597 166,869 170,206 173,610 177,083 180,624
Dorm room 2-2 OBL 225,975 230,494 235,104 239,806 244,602 249.494 254,484 259.574 264,765 270,061 275,462 280,971
RA Unit 24,212 24,696 25,190 25,694 26,207 26,732 27,266 27.811 28,368 28.935 29,514 30,104
Director Unit 39,369 40,156 40,960 41,779 42,614 43,467 44,336 45,223 46,127 47,050 47,991 48,951
Workforce Housing
Studio-80%AMI 218,997 225,567 232,334 239,304 246,483 253,877 261.494 269.339 277,419 285,741 294.313 303.143
1 bed-80%AMI 281,685 290,135 298.839 307,805 317,039 326,550 336,346 346,437 356,830 367,535 378,561 389,918
2bed-80%AMI 478,748 493,110 507,903 523,141 538,835 555,000 571,650 588,799 606,463 624.657 643,397 662,699
Studio-120%AMI 328.495 338,350 348,501 358,956 369,724 380,816 392.241 404,008 416,128 428,612 441,470 454.714
1 bed-120%AMI 457.738 471,470 485.614 500,182 515,188 530,643 546.563 562,960 579,848 597.244 615,161 633,616
2 bed-120%AMI 708,318 729,568 751,455 773,998 797,218 821,135 845,769 871,142 897.276 924.194 951,920 980,478
Gross Potential Rent 2,908,805 2,991,721 3,077,037 3,164,825 3,255,155 3,348,103 3,443,745 3,542,161 3,643,431 3,747,639 3,854,872 3,985,217
Retail Income(2%annual increases) 181,622 185,255 188,960 192,739 196,594 200,526 204,536 208,627 212,800 217,056 221,397 225,825
Less:Vacancy of Retail and Rental Ina (185,426) (190,619) (195,960) (201,454) (207,105) (212,918) (218,897) (225,047) (231,374) (237,882) (244,576) (251,463)
Other Income 31,438 32,381 33,353 34,353 35,384 36,445 37,539 38,665 39,825 41,019 42,250 43,518
Net Rental Revenue 2,936,440 3,018,738 3,103,390 3,190,483 3,280,028 3,372,156 3,466,923 3,564,405 3,664,681 3,767,832 3,873,942 3,983,097
Marketing&Leasing 11.108 11,441 11.785 12,138 12,502 12,877 13,264 13,662 14.071 14,494 14.928 15,376
Administrative 22,007 22,667 23,347 24,047 24,769 25,512 26,277 27.065 27,877 28,714 29,575 30,462
Property Management Fee 146.822 150,937 155,170 159,523 164,001 168,608 173.346 178,220 183,234 188.392 193,697 199.155
Property Insurance 126.800 130,604 134,522 138,558 142,715 146,996 151,406 155,948 160,627 165,445 170,409 175,521
Utilities 54.493 56,127 57,811 59,546 61,332 63,172 65,067 67,019 69,030 71,100 73,233 75,430
Payroll 125,752 129,525 133,410 137,413 141,535 145,781 150,155 154,659 159,299 164,078 169,000 174,070
Common Area&Amenities 25.150 25,905 26,682 27,483 28.307 29,156 30,031 30,932 31.860 32,816 33,800 34,814
Fire&Life Safety 7.336 7,556 7,782 8.016 8,256 8.504 8,759 9.022 9,292 9.571 9.858 10,154
-
Grounds&Landscaping - - - - - -
Repairs&Maintenance 32,486 33,461 34,464 35,498 36,563 37,660 38,790 39,954 41,152 42,387 43,658 44,968
Turnover 16.767 17,270 17,788 18,322 18,871 19,437 20,021 20,621 21,240 21,877 22,533 23,209
Bad Debt 14,948 15.397 15,858 16,334 16,824 17,329 17,849 18,384 18,936 19,504 20,089 20,692
Total Operating Expense 583,668 600,889 618,620 636,877 655,676 675,033 694,964 715,488 736,618 758,377 780,782 803,852
Pet Omani!Income j 2,352,771 2,417,850 2,484,770 2,553,586 2,624,352 2,697,124 2.771,980 2,848,919 2.928,063 3,009,455 3,093,160 3,179,244
501 c3 Owner Expenses
Replacement Reserves 38,360 39,511 40,696 41,917 43,175 44,470 45,804 47,178 48.594 50,052 51,553 53,100
Other Non-Operating-NCCD Fees 78,286 80,635 83,054 85,546 88.112 90,755 93,478 96,282 99,171 102,146 105,210 108,367
Asset Management Fee 29,896 30,793 31.717 32.668 33,648 34,658 35,698 36,769 37.872 39,008 40.178 41,383
Total Additional Expenses 146.543 150,939 155,467 , 160,131 164,935 169,883 174.980 180,229 185,636 191,205 196.941 202,850
Total Cash Available for Debt Service 2,206,228 2,266,910 2,329,303 2,393,455 2,459,416 2,527,240 2,596,980 2,868,690 2,742,427 2.818,250 2,896,219 2,976,395
Pat Undo, .
Annual Debt Service (1,401,239) (1,401.7611 (1,400,974) (1,398.855) (1,400,709) 11.400,974) (1,399.649) (1.402,033) (1.402,563) (1,401.239) (1,398,080) (1,398,325)
Total Debt Service (1,401,239) (1,401.768) (1,400,974) (1,398,855) (1,400,709) (1,400,974) (1,399.649) (1,402,033) (1,402,563) (1,401.239) (1,398,060) (1,398,325)
Cashfowafter Debt Service 804,990 865,142 928,329 994,600 1,058,708 1.126,267 1,197,330 1,266,656 1,339,864 1,417.011 1,498,159 1,578.070
Debt Service Coverage Ratio 1,57 1.82 1 1.66 1.71 1.76 1.80 1.86 1.90 1.96 2.01 2.07 2.13
''.,,,•''q .r"+ir y-+.,.-• " "t :‘.,,,r- :.eti , r:•` 1 1.,. it.`11 ....."G ....r*i.., 4.'''%i Atl.,• ,_f. .'SlVI:II` :vel. . , :° - 61,a, .,Jr•a _ ,.t::v. l•?. :,' `r,. t.,:.:...i,• „,-,K '✓n,. .,.: . .(
Page 225 of 15 6 E R V 1
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Collins Park Artist Workforce Housing
Operating Pro forma
Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 Year 34 Year 35
FY 2045 FY 2048 FY 2047 FY 2048 FY 2049 FY 2050 FY 2051 FY 2052 FY 2053 FY 2054 FY 2055 FY 2056
2044-2045 2045-2046 2046-2047 2047-2048 2048-2049 2049-2050 2050-2051 2051-2052 2052-2053 2053-2054 2054-2055 2055-2056
Academic Revenue
Miami City Ballet
Dorm room 2-2 184,237 187,921 191.680 195,514 199,424 203,412 207,481 211,630 215,863 220,180 224,584 229,075
Dorm room 2-2 DBL 286,590 292,322 298,169 304,132 310,215 318,419 322,747 329,202 335,786 342,502 349,352 356,339
RA Unit 30,706 31,320 31,947 32,586 33.237 33,902 34,580 35,272 35,977 36,697 37,431 38,179
Diredor Unit 49,930 50,928 51.947 52,986 54,045 55,126 56,229 57,353 58,500 59,670 60,864 62,081
Workforce Housing
Studio-80%AMI 312,237 321,604 331,252 341,190 351,426 361.968 372,828 384,012 395,533 407,399 419,621 432,209
1 bed-80%AMI 401,615 413,664 426,073 438,856 452,021 465,582 479,549 493,936 508,754 524,017 539,737 555,929
2bed-80%AMI 682,580 703.057 724,149 745.873 768,250 791,297 815,036 839,487 864,672 890,612 917,330 944,850
Studio-120%AMI 468,356 482,406 496,879 511,765 527,139 542,953 559,241 576,019 593,299 611,098 629,431 648,314
t bed-120%AMI 652,624 672,203 692,369 713,140 734.535 756,571 779,268 802,646 826,725 851,527 877.073 903,385
2 bed-120%AMI 1,009,892 1,040,189 1,071,395 1,103,536 1,136,642 1,170,742 1.205,864 1,242,040 1,279,301 1,317,680 1,357,211 1,397,927
Gross Potential Rent 4,078,787 4,195,818 4,315,859 4,439,598 4,568,933 4,697,972 4,832,823 4,971,597 5,114,410 5,261,381 5,412,632 5,568,289
Retail Income(2%annual increases) 230,341 234,948 239,647 244,440 249,329 254,315 259,401 264,589 269,881 275,279 280,784 286,400
Less:Vacancy of Retail end Rental/nix (258,546) (265,834) (273,330) (281,042) (288,976) (297,137) (305,533) (314,171) (323,057) (332,200) (341,605) (351,281)
Other Income 44,823 46,168 47,553 48,979 50,449 51,962 53,521 55,127 56,781 58,484 60,239 62,046
Net Rental Revenue 4,095,385 4,210,898 4,329,729 4,451,975 4,577,735 4,707,112 4,840,212 4,977,142 5,118,015 5,262,945 5,412,050 5,585,453
Marketing&Leasing 15,837 16,313 16,802 17,306 17,825 18.380 18,911 19,478 20,062 20,664 21,284 21,923
Administrative 31,376 32,317 33,287 34,286 35,314 36,374 37,465 38,589 39,746 40,939 42,167 43,432
Property Management Fee 204,769 210,545 216,486 222,599 228,887 235.356 242,011 248,857 255,901 263,147 270,603 278,273
Property Insurance 180,787 186,210 191,796 197,550 203,477 209.581 215,869 222,345 229,015 235,885 242.962 250,251
Utilities 77,693 80,024 82.425 84,898 87,445 90,068 92,770 95.553 98,420 101,372 104,413 107,546
Payroll 179,292 184,671 190,211 195,918 201,795 207,849 214,085 220,507 227,122 233.936 240,954 248,183
Common Area&Amenities 35,858 36,934 38,042 39,184 40,359 41,570 42,817 44,101 45,424 46,787 48,191 49,637
Fire&Life Safety 10,459 10,772 11,096 11,429 11,771 12,125 12,488 12,863 13,249 13,646 14.056 14,477
Grounds&Landscaping - - - - - - - -
- -
Repairs&Maintenance 46,317 47,707 49,138 50,612 52,130 53,694 55,305 56,964 58,673 60,433 62,246 64,114
Turnover 23,906 24,623 25,362 26,122 26,906 27,713 28,545 29,401 30,283 31,191 32,127 33,091
Bad Debt 21,312 21,952 22,610 23,289 23,987 24,707 25,448 26212 26,998 27,808 28.642 29,501
Total Operating Expense 827,608 852,069 877,256 903,191 929,897 957,396 985,712 1,014,870 1,044,894 1,075,810 1,107,645 1,140,427
h,tOpsnfthtpmemo 1 3,287,777 3,358,829 3,452,473 3,548,783 3,647,838 3,749,716 3,854,499 3,962,272 4,073,121 4,187,134 4,304,405 4,425,027
501 c3 Owner Expenses
Replacement Reserves 54,693 56,333 58,023 59,764 61,557 63,404 65,306 67,265 69,283 71,362 73,502 75,707
Other Non-Operating-NCCD Fees 111,618 114,966 118,415 121,968 125,627 129,395 133,277 137,276 141,394 145,636 150,005 154,505
Asset Management Fee 42,625 43,904 45,221 46,577 47,975 49,414 50,896 52,423 53,996 55,616 57,284 59,003
Total Additional Expenses 208,935 215,203 221,659 228,309 235,158 242,213 249,480 256,964 264,673 272,613 280.791 289,215
Total Cash Available for Debt Service 3,058,842 3,143,626 3,230,813 3,320,474 3.412,680 3,507,503 3,605,020 3,705,308 3,808,448 3,914,521 4,023,613 4,135,811
Annual Debt Service (1,401,768) (1,402,828) (1,401,504) (1.397,795) (1,402,298) (1,398,590) (1,402,828)
Total Debt Service (1,401,768) (1,402,828) (1.401,504) (1,397,795) (1.402,298) (1,398,590) (1,402,828) -
Cashflowafter Debt Service 1,657,074 1,740,798 1,829,310 1,922,679 2,010,381 2,108,913 2,202,192 3,705,308 3,808,448 3,914,521 4,023,613 4,135,811
Debt Service Coverage Ratio 2.18 2.24 2.31 2.38 2.43 2.51 2.57
- - - . . .ems`:": .' .'i.-:"..,. .t rt. .._•_het:I,. i_::.8..Gx t t .- .l: f__..:/,RAW. •,. ..'xs.."0s ...01..t: ..-:;'i..•.; ::;4r•1‘.: _ .,... . :ate!... .. . .?",'KA it,
Page 226 of 1556 E R V : I A S
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Collins Park Artist Workforce Housing
Operating Pro forma ,
Year 38 Year 37 Year 38 Year 39 Year 40 Year 41 Year 42 Year 43 Year 44 Year 45 Year 48 Year 47
FY 2057 FY 2058 FY 2059 FY 2060 FY 2061 FY 2062 FY 2063 FY 2064 FY 2065 FY 2066 FY 2087 FY 2068
2056-2057 2057-2058 2058-2059 2059-2060 2060-2061 2061-2062 2082-2063 2063-2064 2064-2085 2065-2066 2066.2087 2067-2068
Revenue 1
Academic Revenue
Miami City Ballet
Dorm room 2-2 233,657 238,330 243,096 247,958 252,918 257,976 263,135 268,398 273,766 279,241 284,826 290,523
Dorm room 2-2 DBL 363,466 370,735 37B,150 385.713 393,427 401,296 409,322 417,508 425,658 434,376 443,063 451,924
RA Unit 38,943 39,722 40,516 41,326 42,153 42,998 43,856 44,733 45,628 46,540 47,471 48,420
Director Unit 63,323 64,589 65,881 67.199 68,543 69,913 71,312 72.738 74,193 75,676 77,190 78,734
Workforce Housing
Studio-80%AMI 445.176 458,531 472,287 486.455 501,049 516,080 531,563 547.510 563,935 580,853 598,279 616,227
1 bed-80%AMI 572,607 589,785 607,479 625,703 644,474 663,809 683,723 704,234 725,361 747,122 769,536 792,622
2 bed-80%AMI 973.195 1,002.391 1.032.463 1,063.437 1,095,340 1,128,200 1,162.046 1,196,908 1,232,815 1,269,799 1,307,893 1,347,130
Studio-120%AMI 667,763 687,796 708,430 729,683 751,574 774,121 797,344 821,265 845,903 . 871,280 897,418 924,341
1 bed-120%AMI 930,486 958,401 987,153 1,016.768 1,047,271 1,078,689 1,111,049 1,144,381 1,178,712 1,214,074 1,250.496 1,288,011
2 bed-120%AMI 1439,865 1,483,061 1,527,552 1,573,379 1,620,580 1,669.198 1.719,274 1,770.852 1.823,977 1,878,697 1.935,058 1.993.109
Gross Potential Rent 5,728,481 5,893,341 8,063,008 6,237,622 6,417,328 6,602,278 6,792,624 6,968,527 7,190,149 7,397,659 7,611.230 7,831,042
Retail Income(2%annual increases) 292,128 297,971 303,930 310,009 316,209 322,533 328.984 335,563 342.275 349,120 356,103 363,225
Less:Vacancy of Retail and Rental Ina (361,237) (371,479) (382,016) (392,858) (404,012) (415,489) (427,296) (439,445) (451,945) (464,807) (478,040) (491,656)
Other Income 63,907 65,824 67,799 69,833 71.928 74,086 76,308 78,598 80,958 83,384 85,886 88.462
Net Rental Revenue 5,723,280 5,885,658 6,052.721 6,224,606 6,401,453 6,5831408 6,770,820 6,963,242 7,161,434 7,365,357 7,575,179 7,791,073
Marketing&Leasing 22,580 23,258 23,956 24,674 25.415 26,177 26,962 27,771 28,604 29,462 - 30.346 31,257
Administrative 44,735 46,077 47,459 48,883 50,350 51.860 53,416 55,018 56,659 58,369 60,120 61,924
Property Management Fee 286,164 294,283 302,636 311,230 320.073 329,170 338,531 348.162 358,072 368,268 378,759 389.554
Property Insurance 257,758 265,491 273,456 281,660 290.109 298.813 307,777 317,010 326,521 336.316 346,406 356,798
Utilities 110,772 114,095 117,518 121,044 124,675 128,415 132,268 136,236 140.323 144,533 148,869 153,335
Payroll 255,628 263,297 271.196 279,332 287,712 296.343 305,233 314,390 323,822 333,537 343.543 353,849
Common Area&Amenities 51,126 52,659 54.239 55,866 57,542 59,269 61,047 62,878 64,764 66,707 68.709 70,770
Fire&Life Safety 14,912 15,359 15.820 16,294 16,783 17,287 17,805 18,339 18.890 19,456 20,040 20,641
Grounds&Landscaping - - - - - - -
Repairs&Maintenance 66,037 68,018 70,059 72,161 74.326 76,555 78.852 81,218 83,654 86,164 88,749 91,411
Turnover 34,084 35,106 36,159 37,244 38,362 39,512 40.698 41,919 43,176 44,472 45,806 47,180
Bad Debt 30,386 31,298 32,237 33,204 34,200 35,226 36,283 37,371 38,493 39,647 40,837 42,062
Total Operating Expense 1,174,183 1,208,942 1,244,735 1,281,592 1,319,546 1,358,628 1,398,672 1,440,313 1,482,987 1,526,931 1,572,182 1,818,779
Pile 013151102 Income I 4.549,097 4,676,715 4,807,985 4,943,013 5,081.907 5224.780 5,371,748 5,522,929 5,678,446 5,838,426 6,002,997 6,172,293
501 c3 Owner Expenses
Replacement Reserves 77,979 80,318 82,726 85,209 87,766 90,399 93,111 95,904 98,781 101,744 104,797 107,941
Other Non-Operating-NCCD Fees 159,140 163,914 168.832 173,897 179,114 184,487 190,022 195,722 201,594 207,642 213.871 220,287
Asset Management Fee 60,773 62,596 64.474 66.408 68,400 70,452 72.566 74.743 76,985 79.295 81,674 84,124
Total Additional Expenses 297,892 306,828 316,033 325,514 335,280 345,338 355,698 • 366,369 377,360 388,681 400,341 412.352
Total Cash Available for Debt Service 4,251,205 4,369,887 4,491,952 4,617,499 4,746,628 4,879,442 5,016,050 5,156,560 5,301,086 5,449,745 5,602,655 5,759,942
MatteitYke . I
Annual Debt Service
Total Debt Service
Cashflow after Debt Service 4,251,205 4,369,887
Debt Service Coverage Ratio
.,` ---.i
.. F . - ;• 04 ""..:1. y,,rstx._'......1.' Y'.cif.. .BaJt7S.:. ,`'. ! aj3', ia.4st . NRAY .. > JY4G't.. .Al":
.
Page 227 of 1558 E R V I T A S
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Operating Pro forma
Year 48 'fear 49 Year 50 Year 51
FY 2069 FY 2070 FY 2071 FY 2072
2068-2069 2069-2070 2070-2071 2071-2072
law 1
Academic Revenue
Miami City Ballet
Dorm room 2-2 296,333 302,260 308.305 314,471
Dorm room 2-2 DBL 460,963 470,182 479,586 489.177
RA Unit 49,389 50,377 51,384 52,412
Director Unit 80,309 81,915 83,553 85.224
Workforce Housing
Studio-80%AMI 634,714 653,755 673,368 693,569
1 bed-80%AMI 816,401 840,893 866,120 892.103
2 bed-80%AMI 1,387,544 1,429,170 1,472,045 1,516,207
Studio-120%AMI 952,071 980,633 1,010,052 1,040,354
1 bed-120%AM 1,326,651 1,366,451 1,407,444 1,449,668
2 bed-120%AMI 2,052,903 2,114,490 2,177,925 2,243,262
Gross Potential Rent 8,057,277 8,290,125 8,529,782 8,776,447
Retail Income(2%annual increases) 370,489 377,899 385,457 393,166
Less:Vacancy of Retail and Rental Inco (505,666) (520,081) (534.914) (550,177)
Other Income 91,116 93,850 96,665 99.565
Net Rental Revenue 8,013,218 8,241,792 ' 8,476,989 8,719,001
Marketing&Leasing 32,194 33,160 34,155 35,180
Administrative 63,781 65,695 67,666 69,696
Property Management Fee 400.661 412,090 423.849 435.950
Property Insurance 367,502 378,527 389,883 401,579
Utilities 157,935 162,673 .167,553 172,579
Payroll 364,465 375,399 386,661 398,260
Common Area&Amenities 72,893 75,080 77,332 79,652
Fire&Life Safety 21,260 21,898 22,555 23,232
Grounds&Landscaping - - - -
Repairs&Maintenance 94,153 96,978 99,887 102,884
Turnover 48,595 50,053 51,555 53,101
Bad Debt 43,324 44,623 45,962 47,341
Total Operating Expense 1,666,763 1,716,175 1,767,058 1,819,454 -
Pitt ap11o11Ymono 1 6,346,453 6.525,617 6,709,932 6,899,547
501 c3 Owner Expenses
Replacement Reserves 111,179 114,514 117,950 121,488
Other Non-Operating-NCCD Fees 226,896 233,703 240.714 247.935
Asset Management Fee 86,648 89,247 91.924 94,682
Total Additional Expenses 424,722 437,464 450,588 464.105
Total Cash Available for Debt Service 5,921.731 6,088,153 6,259,344 6,435,441
INN WOW 1
Annual Debt Service
Total Debt Service
Caahflow after Debt Service
Debt Service Coverage Ratio
Page 228 of 15b ERV . T A S .
6of6 CC:AEG:A-E it A. EETArr 51Yv-cr4 9/18/2020
r
Miami Beach Milestone and Predevelopment Schedule
Projected Financial Closing Dec-21
Projected Expenditures until Financial Closing 1,306,250
Milestone Sep•20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 I
FERC award recommendation
City Commission contract award A
Planning Board approval of ground lease A
Feasibility Studies 20,000
City Commission approval of development agreement/ground lease A
Retainer of Local Architect,Shulman+Associates 15,000
Preapplication Meeting A
Submit SDs to HPB A
HPB approval of design A
HPB Fees Due 30,000
Shulman Fees 18,750 18,750 18,750
City Commission approval of unit size waivers A
Planning Board recommendation of unit size waiver
PGAL Fees 16,500 16,500 16,500
Permitting
Third Party Consultant Fees Due
Estimating and financial expenses 2,143 2,143 2,143 2,143 2,143 2,143
Travel expenses 3,571 3,571 3,571 3,571 3,571 3,571
Miscellaneous expenses 2,143 2,143 2,143 2,143 2,143 2,143
Legal expenses 8,929 8,929 8,929 8,929 8,929 8,929
Accounting and bookkeeping expenses 1,429 1,429 1,429 1,429 1,429 1,429
Financial Close and Break Ground
Opening _ _
•
Page 229 of 1576
Apr-21 ' May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
18,750 18,750 18,750 18,750 18,750
A
A
30,938 30,938 30,938 30,938 49,500 49,500 49,500 49,500
90,000
46,875 46,875 46,875 46,875 46,875 46,875 46,875 46,875
2,143 2,143 2,143 2,143 2,143 2,143 2,143 2,143
3,571 3,571 3,571 3,571 3,571 3,571 3,571 3,571
2,143 2,143 2,143 2,143 2,143 2,143 2,143 2,143
8,929 8,929 8,929 8,929 8,929 8,929 8,929 8,929
1,429 1,429 1,429 1,429 1,429 1,429 1,429 1,429
A
A
Page 230 of 1576
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