TITLE
RESOLUTION AUTHORIZING THE MAYOR OR THE MAYOR�S DESIGNEE TO EXECUTE A LEASE AGREEMENT WITH CARLISLE DEVELOPMENT GROUP, LLC., A FLORIDA LIMITED LIABILITY COMPANY FOR THE REDEVELOPMENT OF VACANT LAND LOCATED AT 2320 NW 62 STREET, MIAMI, FOR THE PURPOSE OF DEVELOPING AND OPERATING THE PROPERTY AS AFFORDABLE HOUSING WITH CERTAIN CONDITIONS FINDINGS AND REQUIREMENTS; AND AUTHORIZING THE COUNTY MAYOR OR THE COUNTY MAYOR�S DESIGNEE TO EXERCISE ANY AND ALL OTHER RIGHTS CONFERRED THEREIN

BODY
WHEREAS, Miami-Dade County owns a parcel of land with the address 2320 NW 62 Street (folio number 30-3115-000-0170) in Miami, Florida (the �Property�); and

WHEREAS, the Board approved by Resolution R-1151-08, the Substantial Amendment to the FY 2008 Action Plan to include, amongst other things, to carry out the Neighborhood Stabilization Program activities which included the �neighborhood redevelopment of multi-family rental housing on the Expanded Hope VI Area�; and

WHEREAS, Carlisle Development Group LLC (�Carlisle�) was selected through RFP No. 686 as the developer for this affordable housing development under the Neighborhood Stabilization Program; and

WHEREAS, Carlisle Group III, Ltd. is a related entity of Carlisle which may sublease the Property from Carlisle; and

WHEREAS, Carlisle and/or Carlisle Group III, Ltd. may apply for tax credit financing through the State of Florida to further finance the development; and


WHEREAS, Carlisle has committed to set aside 30 units all of which will be rented to households with incomes at or below one hundred and twenty percent (120%) of Area Median Income (AMI) with at least two million five hundred thousand dollars ($2,500,000) of the NSP funds for this project having a direct benefit to residents that are at or below fifty percent (50%) of AMI with all the units to be leased or provided to persons qualifying under the Neighborhood Stabilization Program (NSP) guidelines, including former qualified Scott/Carver residents who will have a right of first refusal; and

WHEREAS, Florida Statute Section 125.379 authorizes the County to make property available for use for the production and preservation of permanent affordable housing: and

WHEREAS, in Resolution No. R-1151-08 the Property was added to the County�s inventory list of properties appropriate for use as affordable housing; and

WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board, pursuant to the authority of Florida Statutes Section 125.379, hereby approves the Lease Agreement between Miami-Dade County and Carlisle Development Group, LLC., a Florida Limited Liability Company (�Carlisle�), for the Property to be developed by the Carlisle as affordable housing, with the use of Neighborhood Stabilization Program funds, in substantially the form attached hereto and made a part hereof; authorizes the Mayor or the Mayor�s designee to execute the Lease Agreement for and on behalf of Miami-Dade County; and authorizes the Mayor or the Mayor�s designee to exercise any and all other rights conferred therein

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners
From: Carlos A. Gimenez
Mayor

Subject:Lease Agreement for the Anchorage (NSP Expanded HOPE VI Area) located at 2320 N.W. 62 Street, Miami
Property # 30-3115-000-0170
..RECOMMENDATION
It is recommended that the Board of County Commissioners (Board) approve the attached resolution authorizing execution of a Lease Agreement with Carlisle Development Group, LLC (Carlisle), a Florida Limited Liability Company, for land located at 2320 N.W. 62 Street, Miami.

This County-owned property will be the site of 30 new affordable housing units to be built by Carlisle with $5 million from Neighborhood Stabilization Program Round 1 (NSP) funds. The attached Lease Agreement has been prepared by the Internal Services Department at the request of Public Housing and Community Development (PHCD).


PROPERTY: 2320 NW 62 Street, Miami
Folio No. 30-3115-000-0170

COMMISSION DISTRICT: 3

COMM. DISTRICTS IMPACTED: Countywide, as these units will be available to any income eligible resident.

OWNER: Miami-Dade County

USE: Development of 30 affordable housing units.

BODY
On November 20, 2008 the Board, through Resolution R-1151-08, approved, among other things, the County�s NSP Plan that includes the �neighborhood redevelopment of multifamily rental housing development on the Expanded HOPE VI Area� in the amount of $5 million. Subsequent to Board approval of the NSP Plan, the County issued RFP No. 686 for this development and included this site. Under the authority granted by Florida Statute Section 125.379, the County is authorized to make property available for use for production and preservation of permanent affordable housing. The sole proposer to RFP No. 686 was Carlisle. On July 29, 2010, the County entered into an Affordable Housing Funding Agreement with Carlisle.

PHCD staff has been working with Carlisle to ensure the affordable housing development meets the County�s needs and the result of this process is the attached Lease Agreement.

It should be noted that the original proposal from Carlisle was for the construction of approximately 40 units. After a more in-depth investigation of the site, it was determined that it is only large enough to accommodate 30 units. The project will consist of six two-bedroom and 24 one-bedroom residential units, all of which will be rented to households with incomes at or below 120 percent of area median income (AMI) with at least $2.5 million (50 percent) of the NSP funds for this project having a direct benefit to residents that are at or below 50 percent of AMI. All the units are to be leased or provided to persons qualifying under the NSP guidelines, including former qualified Scott/Carver residents who will have a right of first refusal.

LEASE TERM: 65 years and one day with no additional renewal option periods.

EFFECTIVE/COMMENCEMENT
DATE: The date the last of the Lessor (County) and Lessee (Carlisle) executes this Lease.

RENTAL RATE: The rental rate generated by the County will equal 90 percent of the monthly net cash flow generated by the development.

FISCAL IMPACT: The Property Appraiser has placed a market value on this property in 2011 of $205,632. Based on the projections of the developer, the real estate taxes for the next 15 years (on the building only), increased at the rate of three percent per year, will generate $446,374. Discounted at 3.75 percent (the present 30 year US Treasury rate) the net present value of these taxes is $329,968.

Additionally, the County is entitled to 90 percent of the project�s net income as rent. Again, based on the developer�s pro forma of net rent, the County�s share for the next 30 years is $387,863. Discounted at 3.75 percent (30 year US Treasury Bonds interest rate) the net present value of this revenue stream is $304,341.

LEASE CONDITIONS: The Lessee will be responsible for development of the site and on completion of construction will manage and maintain the property.

MONITOR: Leland Salomon, Director, ISD Real Estate Development Division.

DELEGATED AUTHORITY:
The County Mayor or the County Mayor�s designee is expressly authorized to agree, on behalf of the Lessor, to:
a) any amendment to this Lease Agreement, which (i) reduces or increases the number of affordable housing units by ten percent or less, (ii) reduces or increases the number of parking spaces in accordance with any variance or determination granted by the applicable governmental authority, (iii) reduces or increases the square footage of the Residential Units structure by no more than ten percent, (iv) insubstantially modifies the design of the Development in a manner which is consistent with the use of the premises as set forth in this Lease Agreement, or (v) modifies the schedule contained in EXHIBIT �B�, as long as such modification does not extend the date for obtaining the certificate of occupancy beyond March 9, 2013;

b) execute any consent to any sublease;

c) execute such easements as provided for in this Lease Agreement; and

d) execute any documents acknowledging a leasehold mortgage on the property.



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Deputy Mayor