LTC 092-2023 Collins Park Artist Workforce Housing Project Update #2M IAM I BEACH
OFFI CE OF TH E CITY MANAGER
NO. LTC # 092-2023 LETTER TO COMMISSION
TO:
FROM:
DATE:
SUBJECT:
Honorable Mayor Dan Gelber and Members of the City Commission
Alina T. Hudak, City Mana~
February 23, 2023
Collins Park Artist Workforce Housing Project Update #2
This Letter to Commission ("LTC") pro vides a status update regarding the Collins Park Artist Workforce
Housing Project (the "Project").
Background
On January 25, 2023, L TC 032-2023 provided background concerning the status of the Collins Park
Artist W orkforce Housing Project (the "Project"), which includes 80 workforce housing units, dormitory
space for Miami City Ballet's dance education program, and street-level retail space for cultural
activation at 224 23° Street. The Project relies on the City for a conservative portion of developments
costs, with residual income and building ownership transferring to the City following satisfaction of debt
service obligations.
The City Commission approved Project funding in the form of a reimbursable direct contribution of $2.85
million, approved through the FY 2023 Capital Budget, and a non-reimbursable $4 million grant
contribution utilizing proceeds from the Arts and Culture General Obligation (G.O.) Bond, approved by
the Miami Beach electorate in the November 8, 2022 Special Election (collectively, the "City
Contribution"). In addition to the City Contribution, Project development costs will be funded largely by
proceeds from the issuance of Miami-Dade County Industrial Development Authority (IDA) revenue
bonds (the "IDA Bond Issuance"). As shared in L TC 032-223, lower interest rates and stabilizing
construction costs influenced a recommendation, by Project developer Servitas, LLC and bond
underwriter CitiGroup Global Markets, Inc., to prepare a limited public offering to be marketed through
a preliminary limited offering memorandum (PLOM).
Status and Next Steps
As of February 22, 2023, the PLOM, and an investor presentation with forecasts, projections, and
estimates, have been prepared and published to qualified institutional buyers and accredited investors.
The Tax Equity and Fiscal Responsibility Act (TEFRA) requires that the Miami-Dade County Board of
County Commissioners (BCC) approve the IDA Bond Issuance for the Project to receive industrial
revenue bonds, a federal and state legislated program that allows the Project's bond financing to be tax
exempt, payable solely from Project revenues, and non-recourse to the City. The BCC originally
approved the Bond Issuance on November 2, 2021 (Resolution R-1050-21) and re-approved on March
15, 2022 (Resolution R-267-22); however, TEFRA requires bond issuance by the IDA within 12 months
of BCC approval. It is unlikely that the bond transaction will be completed and finalized within twelve
(12) months following the most recent BCC approval, and it is likely the IDA will request the BCC to re-
approve the transaction at the March 7, 2023 BCC meeting.
As the Project is building permit-ready and has already obtained a guaranteed maximum price (GMP)
construction agreement, financial closing of the Project can occur following the securing of the bond
C olli ns P ark A rtist Workforce H ousing Project Update #2
February 23, 2023
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proceeds and execution of the Ground Lease, as approved by the City Commission on November 16,
2022, via Resolution 2022-32411. Groundbreaking may take place promptly following financial closing.
The Administration will continue to update the City Commission regarding progress toward financial
closing of the Project.
Questions, regarding the foregoing, may be directed to Rickelle Williams, Assistant City Manager,
rickellewilliams@miamibeachfl.goy.
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