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RESOLUTION APPROVING AWARD OF A DEVELOPMENT AGREEMENT TO PINE DEVELOPMENT, LLC, A FOR-PROFIT CORPORATION, PURSUANT TO SECTION 125.379 OF THE FLORIDA STATUTES, FOR THE DEVELOPMENT OF AN AFFORDABLE HOUSING DEVELOPMENT ON COUNTY-OWNED PROPERTY LOCATED WITHIN THE METRORAIL RIGHT-OF-WAY; APPROVING, SUBJECT TO CONDITIONS PRECEDENT, A LEASE AGREEMENT WITH A 99-YEAR TERM WITH PROJECTED REVENUE TO THE COUNTY IN THE AMOUNT OF APPROXIMATELY $21,000,000.00 IN DEVELOPMENT FEES AND RENTAL INCOME; AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE THE AGREEMENTS, TO PERFORM ALL ACTIONS NECESSARY TO EFFECTUATE SAME FOR AND ON BEHALF OF MIAMI-DADE COUNTY AND TO EXERCISE ANY AND ALL PROVISIONS CONTAINED THEREIN, INCLUDING THE RENEWAL AND TERMINATION PROVISIONS; WAIVING THE PROVISIONS OF RESOLUTION NO. R-407-19 REQUIRING NOTIFICATION TO THE PUBLIC PRIOR TO THE NON-COMPETITIVE SALE OR LEASE OF COUNTY-OWNED PROPERTY; AND DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO PROVIDE THE COUNTY PROPERTY APPRAISER A COPY OF SAID AGREEMENTS

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WHEREAS, this Board desires to accomplish the purposes as outlined in the accompanying County Mayor�s memorandum, a copy of which is incorporated herein by reference; and

WHEREAS, pursuant to Section 125.379 of the Florida Statutes, Pine Development, LLC applied to enter into a development agreement with the County to develop a 36-unit affordable housing project on County-owned real property within the Metrorail right-of-way (the �Development Agreement�) and to enter into a lease agreement with a 99-year term (the �Lease Agreement� or �Lease�); and

WHEREAS, this Board has determined that the property is not needed for County purposes; and

WHEREAS, this Board desires to approve the Development Agreement and Lease Agreement between Miami-Dade County and Pine Development, LLC, in substantially the forms attached hereto and made a part hereof as Exhibit �1� (collectively, the �Agreements�); and

WHEREAS, the Federal Transit Administration has reviewed this project and the Agreements and has issued its written concurrence for the project; and

WHEREAS, due to the unique use of this property in connection with the County�s transit system to construct and operate an affordable housing development, this Board waives Resolution No. R-407-19, which requires public notice to be posted no less than four weeks prior to Board consideration,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:

Section 1. This Board incorporates and approves the foregoing recitals and the accompanying County Mayor�s memorandum as if fully set forth herein.

Section 2. This Board approves, pursuant to Section 125.379 of the Florida Statutes, the award of a Development Agreement to Pine Development, LLC, to develop a 36-unit affordable housing development on County-owned property with the accompanying Lease Agreement to become effective upon Pine Development, LLC satisfying all conditions precedent and obtaining all required development approvals and building permits.

Section 3. This Board waives the requirement of Resolution No. R-407-19 that public notice be posted no less than four weeks prior to Board consideration.

Section 4. This Board hereby approves the Agreements between the County and Pine Development, LLC, for the development and lease of the property in substantially the form attached hereto as Exhibit 1, with the Development Agreement requiring payment of an annual development fee of $37,000.00 until execution of the Lease, and a 99-year Lease requiring payment of initial annual rent of $37,000.00 which, beginning in the third lease year, is subject to a three percent annual increase throughout the remaining 99-year term.

Section 5. This Board authorizes the County Mayor or County Mayor�s designee to execute the Agreements for and on behalf of Miami-Dade County, to perform all actions necessary to effectuate same and to exercise any and all provisions contained therein, including any renewal and termination provisions.

Section 6. This Board directs the County Mayor or County Mayor�s designee to provide the County Property Appraiser a copy of the agreements within 30 days of execution in accordance with Resolution No. 791-14.

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Date:

To: Honorable Chairman Anthony Rodriguez
and Members, Board of County Commissioners

From: Daniella Levine Cava
Mayor

Subject: Resolution Approving a Development Agreement and Lease Agreement between Pine Development, LLC and Miami-Dade County for Property located near the Hialeah Metrorail Station, which will be used for an Affordable Housing Development

STAFF RECOMMENDATION
Executive Summary
This item is for the approval of a Development Agreement and a Lease Agreement between Pine Development, LLC (�Developer�) a Florida limited liability company, and Miami-Dade County (�County�), a political subdivision of the State of Florida, by the Board of County Commissioners (Board) for the development and subsequent lease of an affordable housing development near the Hialeah Metrorail Station. Developer is proposing to construct a 36-unit affordable housing development on 1.24 acres of vacant property located within the Metrorail corridor at the intersection of East 21st Street and East 4th Avenue in the City of Hialeah, Florida.

The proposed Development Agreement provides for a 99-year lease to become effective upon Developer meeting all conditions precedent contained in the Development Agreement. The Developer will pay the County an annual development fee of $37,000.00 from the award of the Development Agreement until execution of the Lease Agreement. Upon execution of the Lease Agreement, Developer will pay the County annual rent of $37,000.00 for the first two lease years. Beginning with the third lease year, the annual rent will increase by three percent each year through the remaining term of the 99-year lease. The estimated total revenue to be received by the County is $21,145,998.12.

Recommendation
It is recommended that the Board approve the terms of and authorize the execution of the Development Agreement and the Lease Agreement between the County and Pine Development, LLC for the purposes described above and in the accompanying resolution. More specifically, the resolution:
� Approves the Development Agreement and Lease Agreement between Miami-Dade County by and through its Department of Transportation and Public Works and Developer, without competition, as authorized by Section 125.379 of the Florida Statutes;
� Waives Implementing Order 8-4, which requires the circulation of the property for review by various County departments for potential uses of the property by those departments;
� Waives Resolution No. R-407-19, which requires notification to the public prior to the non-competitive sale or lease of County-owned property; and
� Authorizes the County Mayor or the County Mayor�s designee to execute the Development Agreement and, upon satisfaction of all conditions precedent, the Lease Agreement in substantially the form attached hereto for and on behalf of Miami-Dade County, to perform all actions necessary to effectuate the same and to exercise any and all provisions contained therein including any renewal and termination provisions.

Scope
The property is located in Commission District 6, which is represented by Commissioner Natalie Milian Orbis.

Delegated Authority
Upon approval of this item, the County Mayor or the County Mayor�s designee shall be authorized to execute the Development Agreement, upon satisfaction of all conditions precedent, the proposed Lease Agreement and any Rental Regulatory Agreement and to take all actions necessary to effectuate those agreements for and on behalf of Miami-Dade County and to exercise all provisions contained therein, including any renewal and termination provisions.

Fiscal Impact/Funding Source
Under the terms of the Development Agreement and the proposed Lease Agreement, the development will be developed, constructed, and operated at the sole expense of Developer, and the Developer will pay the County an annual development fee of $37,000.00 from the award of the Development Agreement until execution of the Lease Agreement. Upon execution of the Lease Agreement, Developer will pay the County annual rent of $37,000.00 for the first two lease years. Beginning with the third lease year, the annual rent will increase by three percent each year through the remaining term of the 99-year lease. Total revenue projections to the County for this proposal are estimated as $21,145,998.12.

Track Record/Monitor
Javier Bustamante, Assistant Director, Project Management and Support Services, Department of Transportation and Public Works (DTPW) will be responsible for monitoring the Development Agreement and Lease Agreement.

Due Diligence
Pursuant to Resolution No. R-187-12, due diligence was conducted to verify corporate status and the compliance history of Developer. No adverse findings were discovered.

Background
DTPW received an unsolicited proposal from Pine Development, LLC to develop, at its sole cost, a 36-unit affordable housing development on approximately 1.24 acres of vacant Metrorail right-of-way. The Developer is proposing to enter into a Development Agreement and Lease Agreement with Miami-Dade County by and through the Department of Transportation and Public Works on a non-competitive basis, as allowed under Section 125.379 of the Florida Statutes. The proposed development consists of a four-story building adjacent to the Metrorail guideway, with parking spaces and landscaped green space to be located under the guideway. The proposed development would be located within the Metrorail corridor at the intersection of East 21st Street and East 4th Avenue in the City of Hialeah, Florida, and is within easy walking distance of the Hialeah Metrorail Station.

The Development Agreement requires the Developer to submit detailed construction plans for DTPW�s approval to assure that the development will not negatively impact Metrorail operations and to obtain all development approvals and building permits necessary to commence construction prior to the Lease Agreement becoming effective. Additionally, the Development Agreement provides that, if the developer fails to complete construction of the development within a maximum of five years of the date of the award of the Development Agreement, subject to unavoidable delays, a lease will not become effective and all rights granted to the developer will revert back to the County. Each of the 36 residential units will contain approximately 500 square feet of living space and the development will also contain approximately 1,500 square feet of ground floor retail space, which will be used primarily to provide products and services to the development residents. Under the terms of the proposed agreements, the 36 residential units will be rented to residents with household incomes equal to or below 120% of the Area Mean Income (AMI) (see 2026 Income Limits and Rent Limits below). These restrictions will remain in place for the full 99-year term of the lease and will be administered by the Miami-Dade Department of Housing and Community Development.

2026 Income Limits and Rent Limits
Florida Housing Finance Corporation
SHIP and HHRP Programs

Florida Housing Finance Corporation (FHFC) income and rent limits are based upon figures provided by the United States Department of Housing and Urban Development (HUD) and are subject to change. Updated schedules will be provided when changes occur.

The property on which the project is to be constructed was acquired with partial federal funding and requires approval by the Federal Transit Administration (FTA). The FTA has reviewed the proposed project and agreements and has issued its written concurrence for the project. Developer and Tenant (under the Development Agreement and the Lease Agreement, respectively) will be required to implement and incorporate the HIA-LINE project into its development in coordination and cooperation with the City of Hialeah and any other related entities and authorities.



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Roy Coley
Deputy Mayor

Proposed Site



Proposed Development