95-21708 Reso RESOLUTION NO. 95-21708
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING
AND DIRECTING THE MAYOR AND CITY CLERK TO
EXECUTE THE ATTACHED SECOND AMENDMENT TO
THAT CERTAIN MULTI-FAMILY REHABILITATION
MATCHING GRANT AGREEMENT, DATED AUGUST 31,
1994, PERTAINING TO 221 COLLINS AVENUE,
EXTENDING THE TIME TO COMPLETE THE
REHABILITATION OF THE PROJECT
WHEREAS, on August 31, 1994, the City of Miami Beach entered into that certain
Multi-Family Rehabilitation Matching Grant Agreement (the Agreement) with The 221, Inc.
(Owner), pertaining to the rehabilitation of the Owner's property at 221 Collins Avenue,
Miami Beach, Florida (the Project); and
WHEREAS, pursuant to the Agreement, the rehabilitation of the Project was due to
be completed no later than nine months after the date of the Agreement; and
WHEREAS, on June 21, 1995, the Mayor and City Commission approved an
Amendment to Agreement which extended the completion date of the Project to October
9, 1995; and
WHEREAS, the Owner has now contacted the City and requested a further
extension of time for the completion of the Project, to April 9, 1996; and
WHEREAS, the successful rehabilitation of the Project will help to ease the shortage
of affordable rental housing in Miami Beach.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows:
1. The Mayor and City Clerk are authorized and directed to execute the
attached Second Amendment to that certain Multi-Family Rehabilitation Matching Grant
Agreement, dated August 31, 1994, pertaining to the property at 221 Collins Avenue,
extending the time for rehabilitation of the Project to April 9, 1996.
2. The City's commitment to additional funding under this extension is
contingent upon the Owner providing a firm commitment for refinancing the Project
sufficiently in excess of existing loan balances to complete the Project, or, provide
documentary evidence of available cash reserves sufficient to complete the Project, plus
a 10% reserve for contingencies.
PASSED and ADOPTED this 13th d of September , 1995.
MAYOR
ATTEST:
•
CITY CLERK FORM APPROVED
LEGAL DEPT.
By Date _? W --
C\WPWIN60\PIA\221COLLINS RES
2
SECOND AMENDMENT TO AGREEMENT
This is a Second Amendment (the Amendment), dated as of Oct. 26 , 1995, to that
certain Multi-Family Rehabilitation Matching Grant Agreement (the Agreement), a copy of
which is attached hereto as Exhibit"A", entered into on August 31, 1994. This Amendment
is being entered into by and between, and the Agreement was entered into by and
between, the City of Miami Beach, Florida, a Florida municipal corporation (City), and The
221, Inc., a Florida corporation (Owner).
WITNESSETH:
WHEREAS, on August 31, 1994, the City entered into the Agreement with Owner,
pertaining to the rehabilitation of the Owner's property at 221 Collins Avenue, Miami
Beach, Florida (the Project); and
WHEREAS, pursuant to the Agreement, the rehabilitation of the Project was due to
be completed no later than nine months after the date of the Agreement; and
WHEREAS, on June 21, 1995, the Mayor and City Commission approved an
Amendment to Agreement which extended the completion date of the Project to October
9, 1995; and
WHEREAS, the Owner has now contacted the City and requested a further
extension of time for the completion of the Project, to April 9, 1996; and
WHEREAS,the successful rehabilitation of the Project will help to ease the shortage
of affordable rental housing in Miami Beach.
NOW THEREFORE, in consideration of the mutual promises contained herein, and other
good and valuable consideration, the receipt and adequacy of which is hereby conclusively
acknowledged, the parties hereto agree as follows:
1. ABOVE STATEMENTS.
The above statements are true and correct.
2. EXTENSION OF TIME FOR REHABILITATION OF THE PROJECT.
Owner shall obtain a final certificate of completion from the City's Building Services
Department, pertaining to the rehabilitation of the Project, no later than April 9, 1996.
Section 13(a)(ii) of the Agreement is amended and will read as follows:
diligently pursue construction and timely
complete the project by securing a Final
Certificate of Completion no later than April 9,
1996, or
3. The City's commitment to additional funding under this extension is
contingent upon the Owner providing a firm commitment for refinancing the Project
sufficiently in excess of existing loan balances to complete the Project, or, provide
documentary evidence of available cash reserves sufficient to complete the Project, plus
a 10% reserve for contingencies.
4. CONFLICT.
In the event of any conflict between the terms of this Second Amendment and the
Agreement, the terms of this Second Amendment shall prevail.
5. GOVERNING LAW.
This Second Amendment and the Agreement shall be governed by and construed
in accordance with the laws of the State of Florida.
IN WITNESS WHEREOF, the City an. e Owner have caused this Second
Amendment to be executed by their duly au or zed officers as of 'e date first written
above. 4
Adk
TYMOU 'LBER, ''YOR
Date: October 26, 1995
ATTEST:
CITY CLERK
The 221, Inc.,
a Florida corporation
WITNESS: By:
Print Name:
�/ r? Title: C9
- � Date: /o / / 9S.
FORM APPROVED
:\wpwin60\ait\221collins.agr LEGAL DE T.
By _ ?
2 Date 74,t' .
•
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. c' { c— 35
TO: Mayor Seymour Gelber and September 13, 1995
Members of the City Commission DATE:
FROM: Jose Garcia-Pedrosa
City Manager
SUBJECT: A RESOLUTION AUT ,'a RIZING AND DIRECTING THE MAYOR AND CITY CLERK TO
EXECUTE A SECO i AMENDMENT TO THAT CERTAIN MULTI-FAMILY HOUSING
REHABILITATION MATCHING GRANT AGREEMENT, DATED AUGUST 31, 1994,
PERTAINING TO 221 COLLINS AVENUE; EXTENDING THE TIME TO COMPLETE THE
REHABILITATION OF THE PROJECT.
ADMINISTRATION RECOMMENDATION:
It is recommended that the Mayor and City Commission adopt the attached Resolution authorizing and
directing the Mayor and City Clerk to execute a Second Amendment to that certain Multi-Family Housing
Rehabilitation Matching Grant Agreement, dated August 31, 1994. Said amendment authorizes an extension
of time to complete the rehabilitation project which is currently underway at 221 Collins Avenue, Miami
Beach, known as the "221 Collins Apartments".
BACKGROUND:
The City, through the Housing and Community Development Division, of the Design, Development and
Historic Preservation Services Department administers various federally funded affordable housing programs.
The Multi-Family Housing Rehabilitation programs provide the financial assistance necessary to undertake
rehabilitation of buildings in order to provide decent, safe and sanitary affordable rental housing for low and
moderate income individuals. The City has offered this financial assistance for the past thirteen (13) years
resulting in the successful renovation of over 1,100 units of rental housing.
The funds for these programs come directly to the City from the U.S. Department of Housing and Urban
Development (HUD). The guidelines for the programs require that the buildings be maintained in rental use
for a specified period of time.
On June 15, 1994 the Mayor and City Commission approved Resolution #94-21186, authorizing and
directing the Mayor and City Clerk to enter into an Agreement with the owner of the property located at 221
Collins Avenue. This Multi-Family Housing Rehabilitation Matching Grant Agreement,dated August 31, 1994,
provided a CDBG Subsidy in the amount of$82,500 for the rehabilitation of the property, and provided that
said rehabilitation project must be completed within nine (9) months of the date of the Agreement (June 1,
1995). The owner is in the process of reconfiguring and rehabilitating the building to make available eleven
(11) two-bedroom apartments.
On June 21, 1995 the Mayor and City Commission approved an "Amendment to Agreement", which
extended the completion date of the project to October 9, 1995, this Amendment to Agreement was
AGENDA ITEM C
DATE q- 13- l S
•
COMMISSION MEMO
SEPTEMBER 13, 1995
executed on June 29, 1995. The Owner has now contacted the City and requested a further extension of
time for the completion of the project to April 9, 1996.
ANALYSIS:
Carolyn Freveletti is the President of The 221, Incorporated which is the owner of the property located at
221 Collins Avenue. The owner has encountered several situations which have caused the project to fall
behind schedule.
The original request for an extension of time was based on the fact that the owner had suffered three deaths
in her immediate family, requiring her to be out of the City for an extended period.
The Owner was subsequently hospitalized and underwent emergency surgery during the course of this
project as well. Damage from Tropical Storm "Gordon" also added extra time to the completion of the
project.
Since the previous extension was granted by the City, the General Contractor has abandoned the job, and
has refused to complete the construction of the project. The owner is now in the process of refinancing the
building to make available additional funds to pay the extra costs of completing the project necessitated by
the previous contractor's abandonment of the job prior to completion. The owner is currently soliciting bids
from other general contractors for the completion of the project.
The owner's bank has estimated that processing the documents for the refinancing will require sixty (60) or
more days, and one hundred twenty (120) days are anticipated to be required to complete the construction
once the refinancing is completed, therefore, the owner has requested a 180 day extension of the City's
commitment.
The City's original agreement was to provide a Matching Grant in the amount of $82,500 from the federal
Community Development Block Grant (CDBG) Program funds. No additional financial obligation will be
created by this Amendment. The Amendment also provides that the extension of time is contingent upon:
a) the Owner providing a firm commitment from a qualified lending institution for refinancing the property
sufficiently in excess of the existing loan balances to provide the funding necessary to complete the project,
or b) the Owner providing documentary evidence of the availability of cash reserves sufficient to complete
the project, plus a 10% reserve for contingencies. In no case will the City disburse the balance of funds until
these requirements are complied with.
The project is now more than thirty percent (30%) completed. The City has paid out$22,275 or 27% of the
total commitment of funds to the owner thus far. Under the City's payment procedures, no funds can be
disbursed unless additional construction work is completed, certified by the project architect, and examined
and approved by a qualified City construction inspector. The City's payments to the Owner are always
reduced by a ten percent (10%) retainage, which is paid out upon issuance of a final Certificate of
Occupancy by the City's Building Services Division.
CONCLUSION:
The rehabilitation of the 221 Collins Avenue property will provide eleven (11) 2-bedroom apartments, with
affordability restrictions on 51%, or at least six (6) of the units for a five (5) year period, requiring that the
restricted units may be rented only to persons earning at or below 80%of Median Income. (This Agreement
was approved prior to the City Commission's directive to require only 3 years of affordability.) The only
COMMISSION MEMO
SEPTEMBER 13, 1995
amendment to the Agreement is the extension of the completion date.
The Administration is aware that there is a crucial shortage of two bedroom apartments in the South Beach
rental market, and recommends extending the period permitted to complete the rehabilitation project in
order to provide these much-needed additional affordable family rental housing units.
It is recommended that the Mayor and City Commission adopt the attached Resolution authorizing and
directing the Mayor and City Clerk to execute the Second Amendment to that certain Multi-Family
Rehabilitation Matching Grant Agreement dated August 31, 1994.
JG-P/STP/CAH
CA H\\RES0\221 A M N D2.M EM