Legislative Matter

Miami-Dade Legislative Item
File Number: 090077

Clerk's Official Copy

File Number: 090077

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-1369-08

Control: Board of County Commissioners

File Name: LEASE AGREEMENTS WITH ALONZO MOURING CHARITIES, INC.

Introduced: 1/13/2009

Requester: NONE

Cost:

Final Action: 12/2/2008

Agenda Date: 12/2/2008

Agenda Item Number: 11A4

Notes:

THIS IS FINAL VERSION AS ADOPTED AS AMENDED. ALSO SEE 083358

Title:

RESOLUTION PURSUANT TO SECTION 125.38, FLORIDA STATUTES APPROVING TERMS OF AND AUTHORIZING THE EXECUTION OF TWO SIXTY-FIVE YEAR LEASE AGREEMENTS WITH ALONZO MOURNING CHARITIES, INC., A FLORIDA NOT-FOR PROFIT CORPORATION, TO DEVELOP AFFORDABLE RENTAL HOUSING FOR FAMILIES AND THE ELDERLY ON COUNTY OWNED LAND LOCATED AT THE SW CORNER OF NW 3RD AVENUE AND NW 17TH STREET AND AUTHORIZING THE MAYOR OR HIS DESIGNEE TO AMEND, RENEW OR TERMINATE SUCH LEASE AGREEMENTS AND TAKE FURTHER ACTIONS AND PROVIDE ASSURANCES AND APPROVALS, AS MAY BE REQUIRED OF THE COUNTY [SEE ORIGINAL ITEM UNDER FILE NO. 083358]

Indexes:

LEASE AGREEMENT

Sponsors:

Audrey M. Edmonson, Prime Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

County Attorney	1/13/2009		Assigned	Shannon D. Summerset

Board of County Commissioners	12/2/2008	11A4 Amended	Adopted as amended				P
REPORT:	Assistant County Attorney Cynthia Johnson-Stacks read the foregoing proposed resolution into the record. Commissioner Sorenson recommended the Board be guided in this process by policy recently established to address unsolicited proposals, and seek other proposals for a lower amount. She expressed concern that the approximately $200,000 cost per unit plus the land was quite high. Mr. Shawn Wilson, Housing Trust Group, LLC, appeared before the Board and advised the total building cost reflected in the preliminary development budget was $228,000 per unit, excluding the cost of the land. Mr. Wilson stated to the extent cost savings were obtained through tax credit funding, those savings would be reflected in future budgets. Mr. Leland Salomon, Asset Management & Development Specialist, General Services Administration (GSA), explained that land was generally donated for affordable housing projects to ensure the unit costs remained affordable. He explained that adding the land’s value to construction costs would prevent the developer from being able to build the project affordably. Assistant County Manager Cynthia Curry confirmed that the ordinance adopted by the Board pertaining to “Unsolicited Proposals” did not apply to this proposal, since it involved a non-profit organization. She further advised no Office of Community Economic Development (OCED) or Surtax dollars were currently attached to this project, nor was there a guarantee that this gap funding would be available in the future. Commissioner Rolle asked Assistant County Manger Cynthia Curry to provide him with information on an approximate number of jobs that would be generated if the proposed Office of Community and Economic Development (OCED) dollars were allocated to this project. Commissioner Sosa stressed the importance of this project being completed, and advised she had allocated $5,000 from her District 6 budget funds to the Alonzo Mourning Charities, Inc. Responding to Commissioner Jordan’s concern with the possibility that a lesser percentage of project management responsibility would go to the non-profit entity upon completion, Mr. Salomon noted, based on the developer’s 15-year projections, $1,788,107 would go to the non-profit and $2,916,165 to the developer. He justified the difference by explaining the developer assumed a higher percentage of risk during development and construction of the project. Developer Shawn Wilson added that during the first three years of operation following completion of construction, the non-profit and for-profit partners would manage the project jointly. He noted beginning the fourth year, the non-profit entity would assume the entire 100 percent management, and would receive 100 percent of the cash flow, and defer the developer fee during that time period. Mr. Wilson noted he anticipated a third-party professional property management company being hired to perform the leasing, marketing, and maintenance activities. Commissioner Seijas expressed her appreciation to Mr. Alonzo Mourning for his acts of goodwill toward the Hispanic community. Commissioner Moss spoke in support of this project, and noted it would serve as a piece of the much needed “mega plan” for the Overtown community. In response to Commissioner Martinez’ inquiry concerning what would happen if the anticipated tax credits were not granted, Mr. Salomon read the following provision into the record, which he advised would be added as Item 4.7 under Article IV in the proposed BYLAWS: “…Notwithstanding the foregoing, the LESSEE agrees that: a) if the LESSEE has not received an Allocation Letter for either the Development or the Adjacent Development by December 31, 2010; and b) the COUNTY has provided LESSEE no less than thirty days’ notice in writing, that it has a use for a portion of the DEMISED PREMISES, on either the Development or the Adjacent Development; then upon the expiration of the above notice period, that portion of the DEMISED PREMISES required by the COUNTY, and described in its written notice to the LESSEE, shall be released and removed from the lease as a portion of the demised premises by amendment to the Lease; and this Lease as amended will remain in effect, and otherwise unmodified; c) the Parties agree that the COUNTY may exercise its right to remove a portion of the DEMISED PREMISES from this lease as set forth above for any use, except for the development of affordable housing; the Parties further agree that such removal will only affect and reduce the size of the DEMISED PREMISES of either the development or the adjacent development, but not both…” Assistant County Attorney Johnson-Stacks noted a provision existing in the proposed agreement provided that the County could terminate the lease, without penalty, if no tax credits had been received by January 5, 2012; even is the County had no anticipated use for the property. Mr. Alonzo Mourning, President, Alonzo Mourning Charities, Inc., appeared before the Board and provided a historical overview of his organization’s involvement in the economic development of the Overtown community. He stated the purpose of this proposal was to provide commerce and employment opportunities, create a safe haven for residents, and promote continuous growth and development. Mr. Mourning asked each Commissioner to support this initiative and approve the foregoing resolution. Commissioner Gimenez spoke in support and noted during his tenure as City Manager with the City of Miami, he personally observed Mr. Mourning honor all of his commitments and was truly a “man of his word.” Following closing remarks by Commissioner Edmonson, the Board adopted the foregoing resolution as amended to: 1) add to the end of Article 3.3, on handwritten page 49, the language: “…notwithstanding the foregoing, the Lessee understands and agrees that there is no obligation of the County or OCED to fund either the $300,000 in matching funds or any gap funding; that it is the obligation of the Lessee to properly apply for said funds at the appropriate time…”, and 2) add to line seven of Article 6.3, after the word LESSOR, on handwritten page 52, the language: “…The LESSEE agrees that with the first phase of its development, it will contribute $75,000 for the façade improvements mentioned above, and $50,000 with the second phase…”, as read into the record by Mr. Leland Salomon, Asset Management and Development Specialist, General Services Administration.

Legislative Text

TITLE
RESOLUTION PURSUANT TO SECTION 125.38, FLORIDA STATUTES APPROVING TERMS OF AND AUTHORIZING THE EXECUTION OF TWO SIXTY-FIVE YEAR LEASE AGREEMENTS WITH ALONZO MOURNING CHARITIES, INC., A FLORIDA NOT-FOR PROFIT CORPORATION, TO DEVELOP AFFORDABLE RENTAL HOUSING FOR FAMILIES AND THE ELDERLY ON COUNTY OWNED LAND LOCATED AT THE SW CORNER OF NW 3RD AVENUE AND NW 17TH STREET AND AUTHORIZING THE MAYOR OR HIS DESIGNEE TO AMEND, RENEW OR TERMINATE SUCH LEASE AGREEMENTS AND TAKE FURTHER ACTIONS AND PROVIDE ASSURANCES AND APPROVALS, AS MAY BE REQUIRED OF THE COUNTY

BODY
WHEREAS, the Alonzo Mourning Charities, Inc. (�AMC�), a Florida not-for-profit corporation, which has been organized for the purposes of promoting community interest and welfare and has been designated as an organization exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, has submitted an application, attached hereto and incorporated herein as Attachment �A�, which proposes to lease from the County and develop a total of five acres of County-owned land at the southwest corner of Northwest 3rd Avenue and Northwest 17th Street in the Overtown neighborhood of Miami-Dade County (the �Site�) for the benefit of the current and future residents of Overtown; and
WHEREAS, the Site is adjacent to the Miami-Dade County�s Culmer Neighborhood Service Center; and
WHEREAS, AMC�s application proposes to construct three buildings on the Site, which will consist of approximately 95 affordable rental units for families (the �Family Project�) and
95 affordable rental units for seniors (the �Elderly Project�), as depicted on the preliminary site plan which is attached hereto and incorporated herein as Attachment �B�, as may be modified subject to approval of the County Mayor or his designee; and
WHEREAS, the Family Project will consist primarily of 2-bedroom and 3-bedroom apartments, which will only be occupied by households with income at or below 60% of Adjusted Median Income; the Elderly Project will consist primarily of 1-bedroom apartments, which will only be occupied by households with income at or below 60% of Adjusted Median income, as described in Attachment A; and
WHEREAS, the amenities proposed to be provided for each project include a clubhouse, swimming pool, fitness center, after-school areas, secure parking, energy efficient features, and outdoor recreation areas, green spaces, attractive architectural and design elements and a public work of art, plaza or fountain; and
WHEREAS, an affiliate of AMC intends to apply for tax credits for the Family and the Elderly Projects from the Florida Housing Finance Corporation, which requires that the applicant for tax credits demonstrate site control of the property upon which the affordable housing projects are to be built through either a long-term lease or ownership of such property; and
WHEREAS, the terms of the proposed Lease Agreements provide for a rental payment in the amount of $1�per year for the term of the lease,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA:
Section 1. The foregoing recitals are incorporated herein by reference.

Section 2. The Board finds and determines that the County owned -property located at the SW corner of NW 3rd Avenue and NW 17th Street is not needed for County purposes, that it will be used by AMC for affordable rental housing developments for families and the elderly and that such use is in the public�s community interest and welfare, and that entering into the attached Lease Agreements is in the best interest of the County.
Section 3. The Board hereby approves the attached Lease Agreements, in substantially the forms attached hereto as Attachments C and D between Miami-Dade County and AMC for development of the affordable rental housing projects for families and the elderly as proposed therein and authorizes the Mayor or his designee to execute such Lease Agreements, as approved by the County Attorney�s Office, and amend, renew or terminate such Lease Agreements and take further actions and provide assurances and approvals, as may be required of the County by such Lease Agreements.
>>Section 4. AMC shall also be required to incorporate into its development plan the fa�ade improvements of the businesses along NW 3rd avenue which abut the property. Such improvements will be done at the sole cost and expense of AMC and its affiliates and partners, in a time and manner acceptable to and approved by the County. The Mayor or his designee is authorized to execute or amend such Agreements as may be required, following approval by the County Attorney�s Office.<<1

1 Words stricken through and/or [[double bracketed]] shall be deleted. Words underscored and/or >>double arrowed<< constitute the amendment proposed. Remaining provisions are now in effect and remain unchanged.