all right we're on good evening everyone and welcome I'd like to call the City of Homestead community redevelopment agency meeting to order today is Monday February 5th 2024 and it is 5:30 p.m. we have a roll call Madam Clark board member conal board member aula here board member rth here member Bailey here chairman laam here we have a quorum I'll entertain a motion for the approval of the wait let's go back are there any deletions or deferrals Madam director no Mr chair okay very good we have before us the minutes of our meeting of January 16th we have a motion to approve mooved by board member Bailey seconded by board member cannibal all in favor any opposed all right next item is tab two car number 4158 the triangle project development partner M driver thank you so much Mr chair um I would like to introduce the item by um doing a brief presentation so as a a reminder and and maybe information for the public uh the C's mission is to combat neighborhood deterioration and eliminate economic blight in the designated Community this is a map of the C boundary areas our initiatives align with the CRA plan and they incorporate activities that are designed specifically for the elimination of uh slum and blight in the area and to increase property values in fiscal year 23 the CRA awarded $400,000 in business incentive grants uh those three recipients were La Patrona who is scheduled to have a soft opening in April of this year cozy greens they are targeting an opening next month March and then throwback their target opening is in Spring of 2024 uh we celebrated the grand opening of cir Salon Studios this past fiscal year and um I'm happy to report that she is she being the owner Whitney is at 95% uh occupancy so she's very happy she said that her um clients there are are doing very well and are very busy so that's going quite well we also had residential grants where we awarded five homeowners grants to repair roofs uh shutters bathroom remodels uh ADA compliance and fist replacement and more um we gave a total of $75,000 in Grants and as you are aware this fiscal year we are targeting $150,000 in Grants for 10 homes we also awarded our first uh down payment assistant Grant of $110,000 to a brand new homeowner there in the southwest neighborhood for a new construction home that was built on an infield on a county infield lot we did some neighborhood improvements in fiscal year 2023 um on Southwest 4th Street we repaved and restriped the road removed dead Palms planted new Oaks we did we pressure washed the sidewalks cleaned up litter resided and a little bit more um phase two has begun already and we with commercial facade improvements we've started painting some of the commercial buildings over there um we will be doing additional streetscape repainting of the decorative crosswalks uh installation of decorative light poles and we're going to release a call for artists for a commercial building design um not a mural but a little design on a couple of the the building the commercial buildings over there we also launched Rock the block on Southwest 6 Street that's where we did some Landscaping mailbox installation trash pickup planted F flowers fence painting uh stump removal tree trimming and the next Rock The Block is scheduled for February 24th that's a Saturday uh starting at 8: a.m We will send you all an official invitation as soon as they are are printed out but we wanted to put this uh at the in on your mind tonight and then we also have some other improvements that are that are ongoing or underway at this time um we recently completed painting four homes on Southwest 6 Street we have six remaining to be painted um and the painter is moving through them rather quickly so we anticipate those should be completed by the end of next week so almost every home on South West 6th Street will have been um received a a Fresh coat of paint those that did not get paint it was only because the the owner didn't consent uh we will we did some residing that's underway almost complete uh some new decorative lights are set to be installed this year and restriping repaving of the street and then also adding some on street parking all on Sixth Street the um we have two dumpster enclosures that are under construction right now phase two will begin this summer um we also did the groundbreaking for the four homes that are to be constructed on CRA lots and we acquired three four unit apartment buildings for the triangle project that will be demolished and demolition is February 15th at 10: a.m. we'll give you a u calendar invite for that as well hope that all of you all can come out we got some little fun activities scheduled for you um and looking forward to tearing down these eyes sores and um do want to make um you aware as well as the public that the folk that were living in these uh deplorable conditions were all relocated to much nicer homes um and taking their relocation was taken care of um by the CRA uh those that did not qualify for the relocation dollars it was because they were either had already moved out by the time we closed on the building um there were several families that had some place else that they moved to or they went back home to another state so we um were able to get several families placed into much better living conditions and their rent paid for up to 16 months Downtown Development Old Edison building um we purchased that for 4.2 million uh we are looking forward to bringing back to you a followup from last month's meeting uh regarding the O Edison building which leads us to the triangle project while we're here tonight um this is an aerial view of the area leading into the Southwest neighborhood um commonly known as historic Southwest neighborhood right there on Flagler and Southwest 4th Street this is looking Westward there are um about 21 Parcels that make up this project and when we look at this and consider the Southwest neighborhood we wanted to consider the richness of its history uh beginning back in the 1930s where the black railroad workers um they built that Community which is west of the tracks uh it was now a community that is underdeveloped um no maor development for more than 30 years has happened over in the southwest neighborhood so um through your direction and guidance we thought a mixed juuse project mixed income Transit oriented development would be something that would be a transformative Catalyst for the Southwest neighborhood so we released the request for proposals and we were seeking a qualified development partner with relevant experience uh we wanted to build a productive and collaborative partnership with this development partner to to deliver a mixed juice development that would incorporate affordable housing market rate housing and Commercial components and to also enable commercial activities that would contribute to the neighborhood activation and economic development and then lastly um and very important for that neighborhood and for you all is inclusion of amenities that will be attractive and beneficial not only to the residents of that development but to the surrounding area we received three respondents to the RFP uh Luna development services Legacy real estate development and interrelated Construction Services Corp a legacy I'm sorry um Luna development is the number one ranking proposer and they are here tonight and would like to present to you the um their project their proposal for the triangle project we have two Representatives here in the audience that will be leading the the presentation and we also o have someone online from from Luna that will uh be chiming in you see them there okay so at this time Mr chair if I may I'd like to invite the love to hear from them welcome just come on up to the podium to the podium and as they are coming um staff recommends that you all consider approving this well consider authorizing the city manager to begin negotiations with Luna development if you'll give us your names and your positions and which company you're with before you get started just so we have it on the record we're welcome thank you sir my name is Arturo Vasquez I am a design principal at stantech Architects and Engineering we are located in downtown Miami at uh tubis C Boulevard and I'm here to speak on behalf of the team in regards to the overall vision and the development in the program and answer any questions you may have about that aspect of the project good everybody I am Stephanie the Roa I'm also here in representation of stantech I am a planner so I work in the community with the community development team and uh we're supposed to have um Jeff tamin be able to join us uh but I don't know if that's actually happened so is is is Jeff on the call this is Amy on the line from stantech as well if you can hear me we can yes very well thank you okay great so I'm an urban planner and I am texting Jeff I had a bit of a difficulty logging on so I'm texting him to make sure because I know he confirmed that he would be on well go ahead when you're ready okay well thank you very much um and first of all we appreciate this opportunity to come here and speak with you and share the vision and um we feel uh very fortunate to be able to work uh with neighborhoods and municipalities and uh uh Redevelopment authorities to essentially uh work with you in a partnership to develop a vision that we feel very strongly about um more specifically in being able to revitalize and create uh Catalyst opportunities for redevelopment of downtowns and urban neighborhoods um our proposal is to to create a broader sense of a public realm where a number of different uses can occupy the sites over time including uh parking including retail office commercial and the residential component over three over two phases uh in a period of time that we think is appropriate for your development um in very simple numbers um uh the entire development over the entire ire street is approximately four acres there are several Parcels that you'll see in the visuals uh each of those Parcels is approximately an acre uh and in two phases we can build approximately 200 units it's a little bit less than that it's specifically in how those numbers will uh relate to the individual properties but essentially we're looking at a density of slightly less than 200 units on four acres of total development over a number of parcels uh there is an opportunity to put a parking structure on a parcel that I believe uh will be talked about today and that parcel can contribute approximately 350 cars on a parking structure that could also be part of the overall vision and development but more importantly it's the idea of creating a thriving neighborhood and an opportunity to uh uh have uses that are contributing not only to the neighborhood in terms of housing but also retail and Commercial so our main focus with this project is to align ourselves with the vision of the city so in this slide you have uh the intersection of four Street and railro railroad AV so in this next slide um the camera is located at the same location so this would be what we're proposing so the main idea is to create a vibrant mixed use neighborhood that is very pedestrian friendly and that really spatially marks um the place of uh Forth Street um in the side perimeter so I will let um aruro get a little more into like the opportunities that can be created um by having this type of program uh in the in this specific location which is kind of like a transition an entrance to the Southwest neighborhood and then a transition so all those uh single family uh neighborhoods that are located a little bit more to the West what just this so here's a plan that shows the overall concept you see building a b CDE e and then uh what is called future phase three building F essentially that's the parcel that is to the rear that if it's able to be part of the development can provide significant parking um that improves the opportunity for that quter not only to be looked at as a pedestrian Corridor with the retail uses along each of those buildings but also be able to uh put um some of the parking requirements into play in the first phase we anticipate uh buildings A and B each of those buildings sits on approximately an acre of land Building A is slightly less than an acre Building B slightly more than an acre each of those buildings is envisioned to be anywhere between three and five stories the the complement of the program is the first uh uh the first number of units that uh we anticipate can be built um further down south in a later phase Building C D and E can be built in a in a second phase which is the complement of the development uh for the approximately 200 units so just think about 100 units in phase one and 100 units distributed with commercial mixed use on a letter phas and if we're able to gain the opportunity to build on parcel uh building F then we can accommodate additional parking structure there of approximately 350 spaces so the density is about 45 a little bit more than 45 units per acre uh we can we can uh increase that density depending on opportunities to work with the city and with yourselves in terms of how that makes sense for the for the development but it is right in the mix of a density that we feel optimizes the right scale the right character for the streets um and the opportunity for the development to make sense financially here you see the opportunity on what we're calling building F to build a parking structure that can accommodate uh a number of cars that is measured uh against the potential development of the units plus the office plus the retail that can be envisioned over time so as we mentioned before the we are still working we we're willing to work with the city regarding the specific density that would be adopted for the project so we gave uh a number of uh we're playing with two different scenarios so going in with a low density of with 132 units total or a higher density if we incorporate the parking structure in we're allowed to more allow more units then uh we would be able to bring up the density and have get closer to 60 and have 192 the idea is to have a mix between market rate and affordable housing so that we can create an equitable amount of uh market rate units and affordable units within the project so um there was also some questions about the image and overall identity uh while this is a a highly rendered image um this is really just the beginning of a conversation and working with the city and yourselves to be able to create an idea and a vision that makes sense with uh a number of buildings that can contribute to the street in the public realm so for us a a rendering represents an overall concept of public space of how the retail components make sense to create life and activity on the street and then having the complement of the residential in buildings that range between three and five stories along the streetcape um this image uh represents the overall concept of how that mix uh used environment can make sense in terms of the various uses on the street next here you see a little bit more definition of the streetcape in character where we envision shop uh neighborhood retail that can contribute to the life of the street and then above that uh residential units uh with a mix of densities uh and a character that is really more about connection to uh the outside about light and air uh generous balconies and the type of activities that we think uh increases the opportunity for people to connect not only to the street but also uh create a sense of community this this image is also at the intersection of for and rail railroad a so as you can see um we treat that portion of railroad uh and we incorporated into the project we gave it a special Paving so that eventually it could be closed off and dedicated to activities that benefit the community so with the design um we are trying to expand kind of like the perimeter of impact of the project so that it could also benefit the surrounding communi this image um is also an image to represent the life and activity of the street um the opportunity for the ground floor to have a mix of uses that can create life and character and then above that the mix of residential with um uh opportunity for large areas of of um glass and uh access to Daylight can we confirm if Jeff is on the call okay well let me just speak to the to the schedule I sorry up there okay Jeff we just went through the overall vision in the development uh the acreage the phasing uh the opportunity for the mix of uses and in front of you is a slide on the project schedule so if you could speak to that and then the numbers after that please yeah I don't have very uh would you like me to speak this one Jeff give you a moment yeah you you came in fine I want to apologize to the C for being late I had a little problem with the webin X Jeff we're on the project schedule slide would do you want to take it or do you want me to goad no you you can go ahead okay so this is the project schedule that's proposed we understand that the city's required completion date is January 18th 2027 there's the two phase of development well actually three that were presented in the conceptual plans that were spoken about in the earlier slides um the first phase of the development is our understanding of what is the required completion date of January um 2027 uh we put in the proposed schedule a completion date of Q2 2026 that is a very aggressive timeline um provides about a little bit more than two quarters for the design um one quarter for the permit approvals and a a quick construction process um we didn't want to we want to really go at the project schedule aggressively um to finish ahead of schedule and part of that is to allow for if there are any um unexpected schedule delays such as hurricanes um you know permits that are having trouble getting through something like that to give a buffer um with the the County requirements um following the phase one and two development um or phase one development is phase two um and that follows just shortly after just two quarters behind um phase two does have some more requirements um with utility move uh moving and um working with some of the parking so that one we anticipate to take a little bit more time to get started I think we've B for next slide unless anyone want okay Jeff the next slide is the total development cost Slide the project cost okay what what what number is that what's the number can you hear me hello yes it's a slide right after what number is the slide the project schedule projected cost right the 51 million yeah we we we've come up with this 51 million and um anticipate that or what what was your question with regard to the uh total development cost at the moment I don't think there were questions we just want to go over the numbers if you could just speak to that and then move on yeah I don't think I have those where I am now I have those numbers with me I can go ahead and okay um so the1 the 51 million was based on the average of similar projects um in the area and that's about $350 a square foot so phase one of the development was projected at about 28 million follow followed by um Phase 2 which was 23 for a total of the 51 million we're good for next [Music] slide in in summary yeah those are the um visuals that we wanted to discuss with you in terms of the overall Vision the project cost and the schedule if you have any questions please thank you so we're willing to answer any questions that you might have regarding the design the project in general well certainly the the design and the look of the project is I think near and dear to all of our hearts more importantly would be the financial implications that uh no one has has touched on here tonight um as well as you know any code implications um somewhere buried in here was I think a a condition a request a statement that the city kick in approximately 5% of the proposed uh development cost as its additional contribution um to this project which in round numbers would be $2.5 million so just you again thinking out loud um if we approve the Clos the entering into and the ultimate closure of the contract that's later in our agenda tonight that would represent a prior investment of about $6 million already so you're asking for an additional two two and a half uh in addition to the six that the city has already put into this project at a bare minimum not to mention the carrying cost and so forth of some of these properties that have been on the books um for years um I think the the financial proposal also is very similar or fraught with some of the same issues that some of our some of the pro proposals we have considered for our former city hall site where the city's payment to the city would be you know at the bottom of a waterfall um calculated ba based on um net income and we all know that you know a good accountant can always make income zero or or or negative so while we all appreciate the philosophy and the idea and the design work I think more importantly for our discussion tonight would have been a more detailed presentation on the economics uh the economic side of of this proposal and I I look I want to compliment you know you're the firm the architect the team of Architects that have have put this together you know some things that have been before us recently we I think we've got a really good education on a deeper education on philosophy and aspects of planning and design and and so forth but you're part of the team and no one from Luna is here and I can't see that Luna's ever done anything in South Florida and Luna's the one we're going to be doing business with so you know I'll just say up front I have concerns that again at a second goor round no one is here on behalf of the person or the firm that we could potentially be doing business with for years on a a significant item I I I have a philosophical problem with with that that absence and I just you know want to say that for my colleagues and the public um but again I want to you know commend you on your side you've done a very good good job in in what your assignment was and and uh presenting it to us and I think I for myself I started hitting upon it before we we ended the conversation and when we when we put this out for advertisement we talked about the the bonus density if you will in addition to to 45 and we had a phrase or some conditions as to to what could do that could could you go back and specifically point out what this proposal denotes as those items which justify the density of up to about 60 units per acre or the density in excess of a 45 well specifically we're not proposing a density above what makes sense for you both from a code and from a zoning perspective and also from a financial perspective we gave a range of 45 plus or minus depending on what is the overall development not only economically but also feasibly um at 45 to 50 units an acre with the lots that you have uh available if you go back to the slide and I'll just give you the anwers so so that I can try to put that into into perspective so each of the Lots has a different sizing character the first lot uh which we're calling building a is a rather narrow uh longer so we can build a little bit less there since it's con contrived the the block uh Building B has an opportunity for the density to be a little bit larger uh reaching some of the uh higher levels of of units per acre but it's all going to come down to how much that uh makes sense financially for the city in terms of the development cost and also the parking so for us philosophically and ideally um the lot that we're considering building f is the trigger because if that lot is available then we're able to offset a little bit more density than the 200 plus units 192 um add less than 50 units an acre if you're looking for an opportunity for more acreage the only way I could talk about that is to be able to say that there is a an offset in a balance with perhaps the second phas is where maybe you don't you don't build as much offic or commercial because we don't know what the economics of that's going to be two or three years down the road so there's a flexibility in the parcels in the second phase and in the uh F parcel that would trigger an opportunity for higher density without it looking like you're asking for that much more either philosophically or physically in the overall development the front end of the development I think is really just defined by the first two lots which have a character that probably doesn't allow anything higher than that but the southern Parcels in phase two has more opportunity for the flexibility to happen based on the financials of phase one and the economics of how those uses can make sense if you're looking for a little bit more density well personally I'm not looking for more density but and not to put words in my colleagues mouth but I think some of the phrases we kicked around when we were crafting our directions for the advertising is what are the amenities what are the wow factors that would justify anything in excess of 45 and I apologize it appears that I don't have it specifically tabbed here in my notes on the agenda but I believe that I had read somewhere either in the narrative or a chart that that the actual density for the built out project would be 60 is that is that correct for now we're working with two numbers so we have the potential to go closer to 50 so at 52 but that's going to depend on the conversation we have and then the final unit mix that we decide so we gave a a preliminary mix of topologies but then that lists can greatly vary so depending on the conversations we have with the city and the Necessities um that are that are of the actual market then we could decide well maybe we can have less one or two bedrooms because um that's not really the topology that would really benefit for we could have more one bedroom in Studios so then that would mean more units but then with less Necessities spatially for each unit so that is also something that we're going to Define together as we develop the project and as we go more into detail into the real necessities of uh of the city okay let me if I could let me go through what I've tabbed really quickly um I don't know what P you have a tab nine Financial narrative and approach it looks like it was cut and past because it still references the city of Orangeburg contribution for parking and infrastructure at $750,000 so is that $750,000 accurate if we put the city of homestead's name in there rather than Orangeburg or are these these numbers not accurate either on Tab N I don't think I can speak to to that that ell I so live Mike caught that after and he said that he updated all the numbers and keeping in the um the city name that was a that was a mistake from copying a a former proa but that the numbers were updated okay so the numbers that we have in front of us are not necessarily accur either there the updated numbers aren't here in our package is that correct no no the updated numbers were specific to Homestead okay but we don't necessarily have the the members of the board don't necessarily have that in in uh let me go go back to to that I fully get cut and p cut and paste is a wonderful thing until it's not um yeah mayor well I talked about I'm sorry so if I may I just to clarify the the point with with Amy so Amy the numbers that are included in your submission are the correct numbers for Homestead you just accidentally left the name Orangeburg is that correct yes that was um yes that's what Mike okay very clarified so and we do have um Jeff who joined um after the the webin next was a little difficult um to join um he's here with Luna who who has also joined yeah I joined this is Jeffrey tamin I apologize I had a lot of Audi visual difficulties trying to get on to the webinar um the WebEx for some reason wouldn't let me get in and didn't give me a password but uh we've done a lot of work throughout the country we we're join venturing with Michael and uh certainly have the development expertise with their firm and ourselves to put this project together uh having Orangeburg in there was really just because utilizing that format and that just the name just didn't get changed but it had nothing to do with the numbers themselves isn't that right Amy okay yeah that corre and we've clarified that all right so let me me let me turn to um our development services people um there is a a unit size breakdown here um have we looked at that for consistency with the uh the code so Mr Mayor with the submitt um we would have to do code updates on density unit sizes basically the entire project right right now potentially neither the density nor this mix of unit sizes is permitted that's correct so all I needed to know sorry thank you okay um you have here and again it's uh well I guess it would be the part of tab your tab seven um in a little box there in the top half of the page you talk about land cost of a $120,000 what's that we're quote giving you land that we've acquired over over the years so where does that million $20,000 come from looks like this um so that was the understanding that during the submitt that the city and it may be a have been an incorrupt incorrect assumption that the city was looking for funds towards the property um that would be one of the points that I think moving forward would want to be negotiated with the city about what what value all right well that that's all I have uh board members any questions comments can I get clarification on that last answer was that the the assumed price that they were willing to pay for the land is that what I understood what was the answer I kind of heard that might have been a misunderstanding Amy did you hear the question yes um at the the time of submission um the way we had read it was that the city was looking for um contribution toward the land um but there were other factors that would need to be done such as that two and a half million or something to make some of the in infrastructure cost less so that would be a negotiation Point um that want to discuss with the city very appreciate that thank you any else board member I have a couple questions and um but I wanted to since this is her yeah okay um can we talk about the relationships that you have with the commercial sector and what uh entities you envision bringing on has there been any interest already vocalized during your review and preparation for this project Amy do you want to address that or you want you want me to speak to that you have a little bit more history on the project than I do um yeah I can go ahead and speak to to it so um one of the the entities that has expressed interest was the Bezos Academy um there were several conversations um with that organization which is a preschool um if you guys are not familiar with them they are throughout the the southeast and they provide free preschool so that is one of the entities um and another thing discussed with Luna was that um they would bring in a local broker to bring in um other tenants um the anticipated tenants were mostly like tier 2 tenants which um the goal would hopefully be to find local entities like restaurants um to come into the development um to provide a a nice local presence um Jeff is there anything you want to add to that no I think we always try to work with local Brokers as well because uh we want to do keep as much of the dollars within the community as possible so that would be a very important Point okay thank you thank you and Amy in your um review of the timeline I thought I heard you say quarter two of 2026 is that accurate one for okay for phase one got it okay and then quarter 4 2026 for the final okay I think I answered my own question here with Bailey next to me thank you okay no problem um I saw I have the schedule on on the slide Amy thank you yes um I saw on the rendering rooftop activity was that rooftop access for the residents only or was that intended to be commercial like restaurant dining well primarily Ro not on this one on the other there we go there's people up there on the roof primarily rooftop activity is the amenity for the residential and then most of the public activity which is uh on the ground level is for retail and shops and cafes and that sort of thing we try not to have public access to to rooftops as much so that there's a sense of privacy for the homeowners that are in the buildings thank you um I think in general I like the architectural appeal of the project I think I would like to see more art I would like to see uh more shade structures I see a lot of uh trees but some more intentional shade uh within the courtyards you had another another rendering of like a wider uh larger Courtyard area which was nice but um having some shade structures other than those tents which I'm not sure if those are kiosk intended um I don't see any American flags in the area which my colleagues know is important to me uh but I did find that page in the in the tabs here where it references the 60 units per acre so I too was looking for you know what are the wow factors and to kind of see those specifically item IED so that we can um you know make sure that we're accounting for that uh that push for the density in that area if if it made sense so um I'll rest for now I'd like to hear the rest of my colleagues thank you yes yeah so the way we look at it is not just the numbers of and and I know that's what you're interested in is the exact number whether it's 45 or 60 but all of that has a lot to do with the mix right because without building more physically on say a fivestory building I can increase the density or lower the density based on not only the the unit size but also the mix of units and like Studio versus two-bedroom or three bedroom so for me it's a lot less sort of the the impact on the physical aspect of it and and if I may say the the W Factor isn't just a particular building but the entire concept of the quality of life of the street that in complement the various uses as as it's being envisioned uh in the in the phasing will give you um as an overall idea so it we we see this as an Urban Village which requires a number of things to happen right the streetcape the landscape the complement of how the building create public space and really trying to look at the opportunity for the public realm to be the wow with the buildings as the backdrop and we do have to specify that this is a vision course so there will be opportunities when we start conversations with the city to take this project to the vision that you specifically have for these lws so again these are images that we created to give you you know an idea of what this could be but then would have to go into the speciic so that we actually create the amenities and the space that the C needs thank you um Council thank you chairman thank you very much for this presentation um I think for me the most important part is this is just such a key area to have as a Gateway into the Southwest neighborhood so I do appreciate some of the little details here um I think it does look very inviting I agree with Council man avula definitely more more shade structures I read in there a mention of splash pads so we really appreciate you taking that into consideration we don't have many in the area obviously South Florida is always uh always hot so I think that that would be something that we definitely should include um the shade structure the overhangs I think that's a really nice detail I really am a big fan of that uh there was something similar with the sports complex and I just think it adds such really unique different things with the way the Sun's shining through um what else artificial turf if that is the idea for those large areas I think that that would be a very good call for that area to keep it looking really nice um I love that you're tying in mention of Railroad Avenue I think that's important as well um and as you mentioned this is preliminary I know that we can still talk a lot more about design and and amenities um for me the financial part is not doesn't come as easy as design and how things look um so I was hoping you know I know that staff was excited to see that we had some some more opportunities financially for you guys acquiring what you need to build it so I would be really interested in hearing a little more about that and just making sure that we're all on the same page and um and that this can become a reality so that's really all I have for now thank you thank you you ready just thank you mayor so I'm a little confused on the conveyance of the property kamich maybe you can Enlighten us to because some of those are County property County owned property they gave to us and we're not ow to convey that to anybody are we according to the lease no um there is always the option to go before the county to ask them for permission to sell the sell the property U once it's completed but there is a deed restriction saying that no that we cannot we cannot dispose of the property so that's why we put in here a ground lease and this proposal along with the the all the the other two they all proposed um some type of purchase option for the for the project if it was allowable and can you elaborate a little bit more on the the terms of the ground lease have those been determined no they have not been determined that would be during negotiation they have not been determined and they proposed um and I would have to ask uh Amy to speak to what it is that they're proposing for the the ground lease option okay so but we haven't even begun to scratch that surface yet no we've been under con vience so staff has not been able to communicate with the proposer until tonight but there are some Financial proposals in this package yes deal I'm saying Amy could speak to to what what they put in the packet and provide a little bit more detail or specificity enough thank you and um Leah Leah is also on the line um from Rebel who also worked on The Old City Hall site um that reviewed the financials and would like to speak to in regards to the financials for this project can we hear from her now is she ready yes I think Leah Leah are you ready I said yes yes good evening hello uh my name is Leah fiki as kamitra mentioned I am with Rebel group we're a consultant to the CRA we're financial and transaction advisers and we have uh looked through the proposals and of course while we'll let the proposers speak to any any specifics in their proposal I think we would give a little bit of context particular ly in uh what I believe Mr Mayor um referenced earlier with the comparison to The Old City Hall site and that transaction and uh particularly looking at the RFP which was which was brought out to the market uh we do want to emphasize the the different way in which this project and this transaction is framed so there are there are very different goals it is a it is a different um market and a structure that's expected for this for this trans transaction as opposed to The Old City Hall site so we you see in the name of the solicitation we're looking for a development partner so I believe that the the proposers that uh brought forward proposals for you all to consider took that to heart in terms of looking at what a successful long-term partnership on a ground lease might look like with the city and uh what building a successful economically uh viable and thriving area could look like in in this area of the city so while as as kamitra mentioned there have been no negotiations up to this point that would be up of course to to the board to authorize any negotiation and any uh and any detailed discussions of the terms what was uh put forward in your packet is essentially the the developers preference so I think that's stated explicitly that they have brought forward what um a structure that they they would find agreeable and acceptable from from their uh perspective as as a developer in Miss Market recognizing the goals of the project and of course during the negotiation process the goals would be to come to terms that would be mutually agreeable also with the city so that is uh of course all all to come and if the if the proposer wanted to speak in in more detail to any of their financial projections they could of course do this but again just wanted to emphasize there are some major differences in terms of the economics the the neighborhood the um the development potential of this site as opposed to The Old City Hall site and we do want to make sure that that is that that is very clear to the board and to the public in terms of what the what the hope is for this project that this is not necessarily focused as closely on the financials as the entire package of financials plus the goal the public goals sort of going hand in hand but happy to answer any further questions and of course the proposer can can speak to their um to their proposal in detail well thank you Leah uh any questions for Leah from the board her comment okay are you Good Ju Just for clarity because I like the numbers and I like to know what the city would be receiving compensation if we were to do this and I see it on Tab n it's a 99 year Le structure um payable beginning at stabilization coverage of 1.2x capitalization rate of 7% now for a lot of people they wouldn't understand what that really means so as I always ask what's the bottom line to the city if we enter into a lease agreement with this organization and give them the the ability to to build this project so just a ballpark figure because I know it's going to be negotiated out and the other terms going to come in we're talking about a 2 million plus dollar ask from them for development and you had highlighted the 1 you know 02 million uh land acquisition fee so maybe that's the calculation over a tourn of 99 years doesn't make a lot of sense to me so it's just a ballpark figure for my head so that I know what to look forward to um if we move forward with this as far as what the city would be in a Parkway find uh compensated for the use of this land Amy are you still there Amy yes je no no I'm still here um Jeff do you want to talk to the numbers or and the ground Le Amy we can't oh I think you're muted yeah we we can hear you can you hear me now no I think you got to continue on since you've started it and I was a little late but um we are working on a I want to tell the board we are working on a form of financing also that utilizes an unsubordinated ground lease uh on the entire parcel and also would allow us to um all the cash flow could come back to the CRA that's something that we're uh currently working on has to this is a typical public private partnership type agreement where we would ground lease the land build the building and then lease the building back to the uh to the CRA or to the city and at the end of the lease term uh turn the ownership of the building 100% to the CRA or to the city per dollar free and clear but we're not ready to propose that yet that's some of the negotiations that we would be getting into obviously with compensation uh as soon as the project reached and agreed upon net income stabilization and we can maintain debt coverage and investors returns if we did have investors uh the CRA would receive its compensation which would be determined during the planning stage all right so basically at this time you you cannot answer the question to what the city would receive or the CRA would receive um at stabilization and and it agreed upon net U of this project do you have any performers that you have put together that forecast out the entire 99 years uh do you have anything uh you're you're looking for a specific number not specific or just a number in general just a ballpark figure yeah uh yeah I wasn't working on that aspect I was working more with our uh working out this new structure Amy did you um have that any numbers from Michael we don't have a specific number there are so many different factors um whether it's the ground leas or the property is transferred um the density parking infrastructure numbers there were so many factors that an exact number was not um I don't have an exact number yeah I I think what really what it what it means is that once once the project is designed and once the project has been priced out so that we know exactly what it's going to cost uh including all fees and so forth uh to the city we then can see what our cash flow is based upon the market demand and based upon that cash flow after uh deducting the um the cover uh the debt coverage and also if there is an investor return the balance could go back to the city on an agreed to amount we just don't have a specific because the project is is not completely um designed yet councilman if I could what the CRA is looking for here conceptually you see what they're proposing we're asking for permissions to negotiate with them so we can get that highlevel detail that you're all looking for in terms of if this is a lease or it ends up being a purchase you will have those dollars amount but we were looking really for conceptual wise you just saw the the presentation they've done and if you're okay with the concept so we could sit down with them and kind of hammer out the the details kind of like the old city hall site remember related came HTC came they did their presentations you like this one better than the other one and vice mayor I think it was you who said go get us the best deal you can okay so once we could sit down uh with Luna and Hammer out all those details what the actual costs of the the buildings are going to be and things of that nature and then we can bring that structure once again using the rebel group to go ahead look at the terms see where any areas of caution there should be and I think the mayor you spoke about you know percentage of net obviously that's a red flag here at the City of Homestead so we would hammer all these things out and then bring that back to you all for you all to take a look at it at that point and see if this is something you want to move forward with or not you know and I appreciate that that clarification but for myself I would have lik to have seen some at least some basic performas based upon the proposed mix here because what I heard a second ago is we can't tell you what you're going to get until we have a deal and where I sit we can't have a deal until I know what we're going to get so is that a a chicken and egg argument or a circular firing squad I'm I'm trying to figure that that out which way which way that goes but while I kill some time waiting for the vice chair to come back who wants to to weigh in sure go ahead board R so and and part of the reason I asked that question is because later on we're going to talk about another property that we're going to invest in and without knowing the future returns it's hard to make a decision to add another was it going to be two $2 million plus to add a potential parking structure to the development but it at the end of the day we want to see something like this but it it has to be Equitable for both parties it can't just be uh Equitable for the developer and you know as I I I fought as hard as I did for the the other project um you know knowing up front a ballpark figure you're not held to it it helps us make a decision financially if we want to continue on with this process and then it also helps us if in the future there's you ask for maybe more density and you can explain why you would need that density to not only enhance the project but enhance the the dollars to the city as well to incentivize us to move along with you on that process so that's why I ask about the financial aspects to the city because because to me if we're going to give a developer an opportunity to come in here and make money um all developers are going to say well we can't make a lot of money you know we're going to B pay you based on that um you know we're looking for factual information we're looking for solid you know proof and solid growth over the years this is a 90y year 99y year commitment in in in in cooperation for both the city and for you and it this to be structured equitably Equitable for both parties and that's why I asked that Financial question we're not going to get the answer tonight I I I I think that I was a misunderstanding why we were here tonight is it was made a little bit clear that we were trying to talk about a conceptual thing if you like what you see let us go back and put those formulas together for you and I think that's a fair request to do that but we still are under the gun as well with some of our obligations to the county and and timing to get all of this done so that was the reason I asked that question because for me it's important to know what we're going to get Equitable for the city and and I think everybody would agree with that so that's all thank you so much than thank you sir yes go ahead and then Vice here thank you to my colleagues um the on on top on top of what board member Roth was saying it's also about quality of life for we're getting we're get getting to the 60 unit an acre I want to see how that's improving quality of life not just improving the coffers right so that's important um and and honestly and I'm I think I can kind of feel it across the board we really didn't like the way um the the conversation has been going it's been very like hot potato right like we ask a question and nobody knows who's answering it and maybe that's because they're just not prepared tonight for the specific questions that were asking and they didn't know to be prepared and we didn't know that we weren't going to be asking that and that's fine but I really would hope that the third time's the charm when we come back to discuss this this project that the answers are quicker clearer concise and specific if that if that if that's a different definition from concise so I don't know how else to kind of Express that um it it didn't it doesn't feel good to have these kinds of uncomfortable conversations when you're dealing with big projects and it doesn't really add a lot of confidence to me um but I'm hoping that the next meeting will go well and aside from that are we going to be doing any other interviews or other um um presentations from other bids no no this was a a request for proposal process so we have the strict guidelines that we have to follow so we are asking for you guys to consider negotiations authorizing city manager to begin negotiations with this uh with Luna if we're unable to have a successful negotiations with them then we move to the second proposer and then same thing with the third proposer that's how the procurement process works um with these um rfps understood and we're not able to staff's not able to communicate um with them because we're under con of Silence so once we leave this meeting we go back under the cone of silence so we're not able to have any outside discussions with them unless we do it through procurement and um so it's a little bit different than the way that that you experienced it with the O City Hall site because it was a 163 notice and so that's why we're asking for tonight for the authorization for the city manager to begin to negotiate with them to fine-tune these financials come back to you guys with an agreement with the performers that are outlining specifically U what it is the CRA would receive what it is they're asking what you know what the project looks like long term so thank you for that and it's a good reminder as to the pros and cons of the 163 notice versus the RFP process and um I'm fine with giving staff authorization to proceed with negotiations but that doesn't mean I'm signing on the dotted line I want to see more numbers I want to have more specificity to the to the project overall and it has to be it has to make sense black and white in writing and and in the vision so thank you for your time you guys have done a great job in your presentations um you know go go back to the team and get it together okay thank you I I've heard very clearly what you're looking for and I can convey that to our development team and to ourselves in terms of what is the value proposition for the additional density and what are the specific numbers on compensation and how does that relate to something that that is measurable both economically quantifiable and qualitative thank you Vice chair thank you Mr chairman and I wanted to thank the uh applicant for their presentation uh couple of questions that I have mainly one for staff specifically so we've spent roughly $6 million on property acquisition in this location so far today with the approval of the second item it will be close to $6 million of the arpa funding that you guys authorize us to spend correct okay uh overall I want to say the presentation uh you know lacked a lot of specic specificity um however uh I think I will reiterate what I said with staff yesterday I'm excited about getting something started down here I mean this is going to be a catalyst for our Southwest section overall I think we can talk about architecture and a lot of the other details uh as we move forward but uh it's it's very disconcerning to me that nobody's here from the primary group uh to to be at this presentation um so that that's I have a lot of questions uh when it comes to what's their real Buy in right to coming to do business with the City of Homestead um I look at the your cost per square foot it seems a little high to me but I noticed there was one that was way low so I can discount that um so I'd be looking to really hone in as we move forward on those numbers and and see what those financial uh benefits are to both the city and and how we move forward from there looking at some of the uh evaluator notes as well going through the package uh you know there there was specific uh items noted where more clarity was needed on the financial aspects of this so I think uh I'm I'm willing to move forward and give staff the authorization to move forward and have that discussion but when we come back to the table we got to have it nailed okay that's it thank you everyone thank you Mr Vice chair board member cannal all right so I think we touched on it but I don't know that we ever got a real answer and it's one of the items we're going to need to see is if the city is going to contribute that additional 5% and based on these numbers and round numbers $2.5 million I'd like to know how and where it's coming from but also a handle on what our other obligations already are you know we're going to be readdressing the Edison building in the coming weeks we have loan obligations there you know and I know there have been some really big sales within the CRA boundary boundaries that will increase our Revenue but I think we need to have not just an idea of where that's coming from but an ongoing kind of mental spreadsheet if you will of of the ins and outs of the revenue within the community redevelopment U agency um again I think I've expressed before I'm kind of disappointed at the shallowness of the the information that's been available to us tonight again I want to reiterate my compliment to the two individuals who are here um before us you know you'll probably realize that I'm a frustrated architect and that if I had any MTH skills and could draw a straight line with the ruler maybe I'd have been an architect but uh I I ran for City Council in Boston so I I appreciate that in Boston no l wow don't don't ask me why Wow well that's certainly a dichotomy of archit always help better on that side of the T and and don't take this the wrong way but as we begin to talk about look to me this is true too trendy let's think about something at least for me that stands the test of time and is not outdated by the time we we finish understood so I guess we need a what a motion to authorize staff to enter into negotiations is that's what requested okay do we have that motion moved by board member Bailey second by board member Avala any public comment on this item all right we'll close yes yes once you authorize city manager to begin negotiation then we're able to talk to them to negotiate so if I can put a finer point on that The Quon of silence is lifted for negotiations we still conduct those in the presence of procurement have minutes taken for those meetings um it's not like the city hall where now the mayor and councel or all staff is able to speak with the proposer directly very good yes sure just one quick thing first off um as this is happening to just keep fourth and sixth streets in mind to see how we can make that an easier cross over chrome Avenue it's cross crossing East either on Fourth Street from the southwest neighborhood either Fourth Street or sixth street is terrible it's we definitely need to figure something out before this uh this happens thank you thank you chairman great observation all right we have a motion in a second we've had the opportunity for public comment so I suppose it's time for a roll call Board member cannibal no board member rth yes board member aula yes board member Bailey yes Vice chairman Fletcher yes chairman lner a very reluctant and guarded yes the motion carries thank you that's our next item thank you very much for your time thank you very coming down appreciate it go thank you Mr chair so staff recommends the C board approve the attached resolution authorizing the executive director to enter into an agreement for the purchase of real property at 419 Southwest 2 Avenue using arpa funds in the amount of 2.2 mil 840,000 from lodging in Florida 3 LLC and 419 Studios LLC as mentioned in the previous uh presentation this project uh is connected to the triangle and would benefit the proposer by serving as initially part paring and then maybe some additional commercial space that it that's it board members questions comments yes board member Bailey thank you chairman um is there a date of how soon we need to let them know yes um they've been gracious we've they had to extend the date um a couple of times and so it is February February 15th is the date that the the last date the seller is willing to to wait and if if we end up sticking to the 45 units per acre that parking garage would not be needed is that what I got from it would be a a multi-purpose building I mean not multi-purpose but it would be used for parking and additional commercial they left sorry I they explained to me they would be used for parking and additional commercial at the lower density I'm sorry at the lower density yes sir so this way they don't have to come back and ask for a variance uh a parking variance for for that that neighborhood they're going to have to get a variance for parking no M if they go at 45 or even higher and what is that big building right next to it basically right next to one chur the church that's that's what I thought okay and um and that's it's such a perfect middle piece to that puzzle but it's two and a half million dollars um Council councilwoman if I can if you all recall when we started this project you all allocated uh approximately $6 million in arpa funds for this project it's coming out of that so that's we're not grabbing this 2.8 from anywhere else it's from the previously approved amount that you all said you know we're willing to spend this money to acquire these properties so we can make this uh this project uh come to life thank you and nothing from the church they're not interested um the last time we spoke to them they they wanted a couple of million dollars for their building a couple million two couple I uh I think it's it is a little too integral of a piece to to give up and if we're still Within what we had previously decided then I don't see any issues thank you Mr chair I'm sorry if may I in addition to us needing that for for the triangle project um that building has been quite challenging um for our our area um a lot of crime drug use uh and uh the owner has even admitted to to us that they are having these challenges with that property um so it is another one of those those projects we haven't seen the inside of it so we can't speak to the living conditions but if it's similar to the ones that we U encountered before they're they're they're not good so it would be um more beneficial for the community to have that as a space with this new project than to leave it um as it is yes member thank you chair I I think I'm looking at this transaction in dependently to the project that we potentially might be putting there and if if the goal of the CRA is to eliminate slum and blight then and we're within our original budget of trying to develop this area then I'm okay with moving forward and acquiring this property and and I think um on top of that it's it's we may not move forward with this potential um developer we may end up going back to the drwing board and getting a different developer if we don't like the the final numbers and Final Cuts so AG so whether whether it's that project or a different project I still want to proceed with this investment so for that I'll be I'll I'll support this um acquisition tonight thank you thank you um board members Sor well no I want to maybe maybe the same question you have million dollar question of the plus plus plus of potential relocation you have our resident expert looking over your shoulder at the ready I do do you want me to share the news or would you like to no relocation cost for this project because um it's a a program rented out the spaces and so they are responsible for moving their their residents to another location and then the owner also has other properties that um he is working to try to house those individuals in so when Richard and his team looked into it um there won't be any relocation cost for this project and we had the same 441 we didn't have to pay any relocation cost in that one either so so that was going to be part of my my concern but this this property has had a ragged history since um the hurricane of was it was it Irma in 2017 18 whatever it was7 17 um the building I remember in the aftermath of the storm people were living in this building that was totally dilapitated it was and we actually had the police department and code go there and shut the building down it was that bad um children young children were living there and and I'm just telling that story to get to this story or to get to this thought so from it conveyed title three times since and 700,000 1.3 million in 2019 and this this this person bought it for 2.4 million in uh 2022 so how did we come up with our purchase price and is there an appraisal to back up our purchase price yes it is um 10% over no 8% over the appraisal price 8.2% above the appraised price and um when he brought the building they did do quite a bit of Renovations uh to make it livable um repairing the roof and all 24 units were were renovated so um he was just trying to be able to recoup um the cost of the renovations that he had made to the building over the past almost two years and we have this has been uh we have other purchases that we have brought before you guys it's within the range of the um 10% or less above the praise value and why are we paying above the praise value I'm I know we've done in the past um I know this is an intricate piece of the puzzle to expand the footprint of the property I'm just curious as to um why we would pay over an appraise value would like to Richard would like to respond welcome to the part Richard glass um he's been our handling our relocation in negotiations good evening good to see you everyone again good to meet you sir um at the two at the 88.2% increase on the governmental end end of buying real estate it's little Converse the regular real estate world at less than 2% is a good deal considered by governmental agencies that I work for um the own the current owner and I never really thought we had a chance to get this property when he bought the property he didn't want to talk to anybody he didn't want to talk to me uh then he came around I think the the city saw him on the streets or something we got reconnected but he did want a profitability on this and and his purchase price was mentioned uh earlier this evening uh so he was looking at profitability he is is making over $25,000 a month um rent from government subsidized it's citric and also uh sectionate housing so he's getting money and he's not having to do anything he didn't think he needed to do anything until the city was violating him for for uh different things there was vandalism and stuff like that so um he's been very Cooperative although he has been demanding he was very demanding during the negotiations his first counter offer was just short of $3 million and we got him down to this price again which is only 8.2% more than the city the cra's appraisal value that was established goe Council you mayor thank you so our price is two 2.84 minus 8% I'm getting appraise value of 2612 two two the appraise value was 2, 625,000 2625 yes and then so if I subtract all that the difference of 215 are we able to keep the tenants at the 25,000 a month for a while you don't want to keep the tenants you really don't want to keep those tenants because what I was trying to see is how how long could we you know pay ourselves back for that overage but so we're the plan is to completely vacate the building and leave it vacate yes vacate and demolish as soon as possible because we could recoup that in less than nine months if we're able to somehow generate some funds so just putting it out there if there's an opportunity to recuperate some funds remember what I mentioned that the the the elements that's over there now that they're dealing with um selling of drugs tampering uh with utilities um a lot of vagrant activity it's it's um isn't that on us I'll rest I I don't know we want to have those tenants Vice chair and not the blor but uh I know I didn't ask this question yesterday but do we have the number of calls for police service at that address um vice mayor not readily right now but absolutely I can get that report sent to all of you tomorrow if you like yeah I believe because it's I believe it's quite extensive not only police but other services as well so we'd be looking at a benefit to the community no matter what so I think it would free up resources that could be used elsewhere in the community as well so and and also to take into account in the equation is is like Mr glass mentioned and kamitra as well we don't have to relocate anyone that would have cost us a pretty penny I'm sure if we had to so I would equate that as well and once again like amitra saying you know if you want a definition of blight in the dictionary you're going to see that building it's a bad building the police are constantly having problems there KRA mentioned tampering of the utilities as well so I think we'd be doing the community a service and we what what we will do for the benefit of the city and the C will'll make sure that the tenants are treated properly that they're just not get out and they lock the door we'll we make sure that they get shephered to the right place including to the very same Property Owners properties several blocks away and others good and I think that board member AA hit the nail on the head that you know our first mission of the CRA is to eliminate slum and bik and it's a big chunk of units and I didn't bring the numbers with me but when I first looked at this um and did a comparison on what we paid per year unit for the twostory fourplex versus this and over the period of time the way the market has changed relatively speaking it wasn't that bad of a differential on a per unit basis you correct sir not that I really like to justify spending that kind of money on something we're going to tear down but this is big bigger picture Vice chair just one final thought uh we need to make sure we're planning ahead as soon as we have closure we need to do this uh demolition quickly can't ler on for months it's got to go quick that's all we've already started that this board member Campbell make sure we take all the residents and re relocate them and level the SP immediately we don't want to see this thing anymore okay I think you announced earlier you have a date for a demolition of those units we already acquired yeah Fe February 15 February 15th at 10:00 a.m. for the first three and then um like I said we've already started getting estimates for how much it would cost to demolish this building and so this one should go a lot faster very good all right thank you Mr glass thank you all right is there any public comment on this item all right I'll close the public hearing and ask for a motion to approve move by board member cannibal seconded by board member aala let's have a roll call Madam clerk board member Bailey yes board member Roth yes board member kbal yes board member aula yes Vice chairman Fletcher yes chairman Len yes the motion carries all right thank you all that concludes the uh the formal agenda for tonight anything further Mr driver no Mr chair Mr manager any public comments regarding CRA activities is there anyone here that needs to make a public comment on any community redevelopment agency issue all right then I'll entertain a motion to adjourn a move so say we all thank you all good night