Resolution No CRA 004-20-1121RESOLUTION NO. CRA 004-20-1121
A Resolution of the City of South Miami Community Redevelopment
Agency (SMCRA) approving a Settlement Agreement between the SMCRA
and the Miami -Dade Affordable Housing Foundation, Inc. (Foundation)
related to the single-family affordable home that was to be developed by
the Foundation at 6179 SW 62nd Terrace, South Miami, Florida; directing
the Executive Director to execute such Agreement; directing the City Clerk
to record the deed from the Foundation conveying the subject property
to the SMCRA; authorizing a funding disbursement to pay the cost of
demolishing the structure on such property and hauling away resulting
debris and any other costs necessary to achieve the purposes of this
resolution; and authorizing the Executive Director to take any and all
necessary and appropriate action to achieve the purposes of this
resolution.
WHEREAS, in 2011, the SMCRA authorized the conveyance of six SMCRA-owned
properties to the Miami -Dade Affordable Housing Foundation (Foundation) for the
construction of six new single-family affordable homes; and
WHEREAS, five of the six single family affordable homes were successfully
constructed and purchased by qualifying owners; and
WHEREAS, the sixth home was to be located on an undersized lot at 6179 SW
62Rd Terrace, South Miami, (Property) which the SMCRA noted in Resolution No.
CRA 53-11-523 would require additional design costs to produce construction
drawings ...based on the size of the lot" and disbursed $5,000.00 for such purpose;
and
WHEREAS, eventually, after the Foundation procured design service and
addressed other necessary issues for the development of the home, building
permits were pulled and construction was commenced on the home in 2016; and
WHEREAS, nearing completion of the home, Florida Power & Light Company
(FPL) determined that the structure being built on the Property encroaches onto
FPL's easement on the Property and the location of the unfinished structure violates
FPL's policy which does not allow any permanent structures under FPL transmission
lines; and
WHEREAS, the City of South Miami's Building Official issued a stop -work order;
and
RESOLUTION NO. CRA 004-20-1121
WHEREAS, various alternatives were considered to remedy the situation, but
were not determined to be feasible or viable; and
WHEREAS, on September 9, 2019, the SMCRA sent a default letter to the
Foundation (Exhibit 1) seeking the return of the Property to the Agency in
accordance with provisions of the Warranty Deed by which the SMCRA conveyed
the Property to the Foundation, such Warranty Deed being recorded at Book 28061,
Page 4537 and the covenants and agreements as set forth in the Agreement
between the SMCRA and the Foundation entered into by the parties in November
2011; and
WHEREAS, on December 3, 2019, the Foundation responded to the default
letter (Exhibit 2); and
WHEREAS, the City of South Miami has indicated its intent to issue an Unsafe
Structure Declaration related to the Property; and
WHEREAS, in an effort to resolve this matter, the SMCRA and the Foundation
(Parties) generally agree as follows, as more specifically set forth in the proposed
Settlement Agreement between the City of South Miami Community
Redevelopment Agency and the Miami -Dade Affordable Housing Foundation, Inc.
(Agreement):
• The Warranty Deed conveying the Property back to the SMCRA is accepted
and will be recorded no later than 3 days from the date of this meeting.
• Issues in dispute are resolved between the parties, consequently each party
is released from further obligations under the Property's Development
Agreement.
• The SMCRA will fund the demolition of the structure on the Property which
is currently authorized to cost approximately $15,000.00.
• The SMCRA agrees not to interfere with the Foundation's lawsuit seeking
damages for alleged errors in surveying, design, etc. related to the
development of the home on the Property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SOUTH MIAMI COMMUNITY
REDEVELOPMENT AGENCY THAT:
Section 1. The foregoing recitals are incorporated in this resolution.
-2-
RESOLUTION NO. CRA 004-20-1121
Section 2. The SMCRA approves the Agreement between the City of South
Miami Community Redevelopment Agency and the Miami -Dade Affordable Housing
Foundation, Inc. in substantially the form attached to this resolution.
Section 3. The SMCRA Executive Director shall execute the Agreement,
following execution by the Foundation, and may take any and all necessary and
appropriate action to achieve the purposes of this resolution.
Section 4. The City Clerk shall record the deed conveying the subject
property back to the SMCRA.
Section 5. The SMCRA authorizes the CRA Director to competitively bid for
the demolition of the structure on the Property and removal of the resulting debris from
the Property. Funds required for payment of expenses authorized by this resolution
may be charged to SMCRA Account No. 610-1110-554-34-60 (Redevelopment Services
Account).
Section 6. The Foundation agrees to clear any title defect on the Property that
may be caused by a 2005 lien on a property that had been owned by the Foundation in
the Liberty City area within 30 days of the date of this resolution.
Section 7. Corrections. Conforming language or technical scrivener -type
corrections may be made by the SMCRA General Counsel for any conforming
amendments to be incorporated into the final resolution for signature.
Section 8. Severability. If any section clause, sentence, or phrase of this
resolution is for any reason held invalid or unconstitutional by a court of competent
jurisdiction, the holding shall not affect the validity of the remaining portions of this
resolution.
Section 9. Effective Date. This resolution shall become effective
immediately upon adoption by the City of South Miami Community Redevelopment
Agency.
PASSED AND ADOPTED this 2nd day of March, 2020.
-3-
RESOLUTION NO. CRA 004-20-1121
ATTEST:
N Q
SECRE ARY
READ AND APPROVED AS TO FORM:
SMCRA Genera Counsel
APPROVED:
- CHAIRPE N
Board Vote: 5-0
Chairperson Philips:
Yea
Vice Chairman Welsh:
Yea
Member Gill:
Yea
Member Liebman:
Yea
Member Harris:
Yea
Member Kelly:
Absent
Member Jackson:
Absent
-4-
Agreement between the City of South Miami Community Redevelopment Agency and the
Miami -Dade Affordable Housing Foundation, Inc.
THIS AGREEMENT is made this �Vj day of March, 2020 between the City of South
Miami Community Redevelopment Agency (SMCRA) and the Miami -Dade Affordable Housing
Foundation, a Florida not -for -profit corporation (Foundation).
WHEREAS, in 2011, the SMCRA authorized the conveyance of six SMCRA-owned
properties to the Foundation for the construction of six new single-family affordable homes; and
WHEREAS, five of the six single family affordable homes were successfully constructed
and purchased by qualifying owners; and
WHEREAS, the sixth home was to be located on an undersized lot at 6179 SW 62"d
Terrace, South Miami, (Property) which the SMCRA noted in Resolution No. CRA 53-11-523
would require additional design costs to produce construction drawings ...based on the size of the
lot" and disbursed $5,000.00 for such purpose; and
WHEREAS, eventually, after the Foundation procured design service and addressed other
necessary issues for the development of the home, building permits were pulled and construction
was commenced on the home in 2016; and
WHEREAS, nearing completion of the home, Florida Power & Light Company (FPL)
determined that the structure being built on the Property encroaches onto FPL's easement on the
Property and the location of the unfinished structure violates FPL's policy which does not allow
any permanent structures under FPL transmission lines; and
WHEREAS, the City of South Miami's Building Official issued a stop -work order on
construction of the home and work on the home as not recommenced; and
WHEREAS, various alternatives were considered to remedy the situation, but not were
determined to be feasible or viable; and
WHEREAS, September, 9, 2019, the SMCRA sent a default letter to the Foundation
seeking the return of the Property to the Agency in accordance with provisions of the Warranty
Deed by which the SMCRA conveyed the Property to the Foundation, such Warranty Deed being
recorded at Book 28061, Page 4537 and the covenants and agreements as set forth in the
Agreement between the SMCRA and the Foundation entered into by the parties in November 2011
(Development Agreements); and
WHEREAS, on December 3, 2019, the Foundation responded to the default letter; and
WHEREAS, in an effort to resolve this matter, the SMCRA and the Foundation (Parties)
agree as follows:
NOW, THEREFORE, in consideration of the covenants, mutual promises and in
consideration of $10.00 and other good and valuable consideration, to be paid to the SMCRA, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree, as follows:
1. The recitals above are incorporated in this Agreement.
2. Each party to this Agreement represents that it has lawful authority to enter into it.
3. The SMCRA accepts the executed warranty deed conveying the Property to the
SMCRA, a copy of which is attached to this Agreement, and the City Clerk shall file
the original deed in the County Recorder's Office within three days of the approval of
this Agreement.
4. The SMCRA will be responsible for paying for the demolition of the structures,
improvements and fixtures on the Property and removal of any resulting debris from
the Property.
5. The SMCRA waives any claims, rights or actions under any performance bond
involving this Property and hereby assigns any such claims, rights or actions to the
Foundation.
6. The SMCRA agrees not to interfere or impede the Foundation's currently pending
lawsuit for damages against the surveyor, architect or other parties related to the
development of the Property and assigns any rights, claims, or actions that will allow
the maintenance of such lawsuit. Nothing herein would prohibit the SMCRA or its
members or employees, assigns or successors or their officers or assigns from
responding to lawfully issued subpoenas, court orders, or other lawful requests related
to the Property.
7. [paragraph intentionally omitted]
8. In consideration of the resolution of the matters as set forth in the recitals of this
Agreement, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties to this Agreement hereby expressly
release and forever discharge each other from any and all claims, demands, causes of
actions, damages, costs, attorneys fees, expenses and obligations of any kind or nature
whatsoever that they have asserted or could have asserted against each other arising
from development of the Property pursuant to the Development Agreements, with the
express exception of an action to enforce this Agreement.
[signatures on following page]
-2-
CITY OF SOUTH MIAMI
COMMUNITY REDEVELOPMENT
ATTEST
By: uV
Secret y
MIAMI-DADE AFFORDABLE HOUSING
FOUNDATION, INC.
WITNESSES:
By: a&4c-&
Print Name:
Approved for form and legal sufficiency: By: C N k�l 4-
PrintName:
By:
SMCRA Attorney
-3-
Agenda Rem No:3.
Special South Miami Community Redevelopment Agency Agenda Item
Report
Meeting Date: March 2, 2020
Submitted by: Evan Fancher
Submitting Department: Community Redevelopment Agency
Rem Type: Resolution
Agenda Section:
Subject:
A resolution of the City of South Miami Community Redevelopment Agency (SMCRA) approving a Settlement
Agreement between the SMCRA and the Miami -Dade Affordable Housing Foundation, Inc. (Foundation) related
to the single-family affordable home that was to be developed by the Foundation at 6179 SW 62nd Terrace,
South Miami, Florida; directing the Executive Director to execute such Agreement; directing the City Clerk to
record the deed from the Foundation conveying the subject property to the SMCRA; authorizing a funding
disbursement to pay the cost of demolishing the structure on such property and hauling away resulting debris
and any other costs necessary to achieve the purposes of this resolution; and authorizing the Executive
Director to take any and all necessary and appropriate action to achieve the purposes of this resolution.
Suggested Action:
Attachments:
SMCRA DRaft Resolution re HUPL at 6179 SW 62 Terrace SM, FL-.docx
MDAHF Resolution Exhibits 1 & 2.pdf
Agreement between the City of South Miami Community Redevelopment Agency-2020-.docx
MDAHF Deed.pdf
Exhibit 1
2001
"Making Our Neighbarhnad a Great Plare W Lim, Work and Play"
Dear Madame Executive Director:
This letter is to advise you that your organization is in material breach of the Affordable
Housing Property Conveyance Agreement with the City of South Miami Community
Redevelopment Agency dated November 18, 2011 (Development Agreement) and the
covenants of the Warranty Deed dated February 13, 2012 between the City of South
Miami Community Redevelopment Agency and your organization (ORB 28061 Pgs. 4537-
4541) (Warranty Deed) by failing to complete the construction of a single-family
affordable home at 6179 SW 62nd Terrace, South Miami, Florida (Tax I.D. No. 09-4025-
009-0240) within the required period, as set forth in the Development Agreement and
Warranty Deed.
Following the conveyance of the subject property on February 13, 2012, a master building
permit was issued for construction of the single-family home on February 11, 2016 and a
revised building permit was issued on April 21, 2016. Your organization, through your
general contractor, commenced construction of the home. During the course of
construction, it was determined that the unfinished structure encroaches onto Florida
Power & Light Company's easement on that property and the location of the unfinished
structure violates FPL's policy which does not allow any permanent structures under FPL
transmission lines. A stop work order was issued by the City's building officials and your
contractor was advised to pursue alternatives to correct these errors. We recognize
efforts have been made with FPL to arrive at a solution. regarding this matter. We also
acknowledge that your organization has filed a lawsuit regarding this matter which, while
pursuing damages against the architect and surveyor, acknowledges the forfeiture of the
property to the City of South Miami [CRA]. However, the encroachment on FPL's
easement and the location of the structure under FPL transmission lines has not been
rectified to date. Exacerbating the matter, the unfinished structure is now derelict and
unauthorized persons have been squatting there.
Provisions of the Development Agreement, including Sections 5, 10, 17 of such
agreement, and paragraph Nos. 2 and 8 of the Warranty Deed require your organization
to have built and obtained a certification of occupancy for the specified single-family
home on the property within 180 days from the date of issuance of the building permit
or within 12 months of the date of the conveyance of the property to your organization,
whichever period is shorter. Neither of those time periods has been extended by the
C
South Miami Community Redevelopment Agency
61.51) SUNSET DRIVE SOt1TH MIAMI, Fl ORIDA 33143 PHONE: r u . 6F8-7236 FAX: 305 663-6345 wvvvv.cityofsouthmiami.net
S7 ►'A Lai :I'_1
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SMCRA. As of the date of this letter, over 3 years and 41 days have elapsed since the
issuance of the revised building permit and over 7 years and 5 months have elapsed since
the conveyance of the property to your organization. Under any timeframe set forth in
the Development Agreement or Warranty Deed, it is clear that your organization has not
completed the construction of the affordable single-family home at issue within allowable
timeframes.
Your organization's failure to timely comply with the requirements of the Development
Agreement and the Warranty Deed constitute a default/violation under the terms of such
agreements. This default/violation must be cured within 30 days of the receipt of this
letter. If you fail to cure the default/violation, we demand that your organization execute
a deed in a form satisfactory to the SMCRA that re -conveys the property to the SMCRA.
In accordance with paragraph No. 8 of the Warranty Deed, the reconveyance shall not
have any title exceptions which did not exist in the title policy issued to your organization
at the time the property was conveyed to your organization. Additionally, your
organization shall forfeit any and all claims to the property and title to the property shall
automatically revert back to the SMCRA. In the event of the reversion of the title, your
organization has no right or claim for reimbursement for any expenditure incurred for the
improvements made to the property.
I would like to schedule a time to discuss this letter and your organization's reconveyance
of the property to the SMCRA and the terms of such reconveyance, as soon as possible. I
would like for the SMCRA's general counsel to participate in our discussion, and please
invite your counsel to participate, as well. You may contact me by email at
efancher@southmiamifl.gov, so that we can arrange a conference call or meeting to
discuss this matter.
I also request a certified copy of the recorded bond required by Section 255.05(b) to be
provided to me within 5 days of your receipt of this letter.
In accordance with the requirements of the Warranty Deed, I'm sending you a copy of
this letter to the following individual:
Anne Manning
7300 NW 19u Street, #502
7
South Miami Community Redevelopment Agency
6130 SUNSET DRIVF �,(JUTH MIAMI, I I VRIDA i., 1�15 PI1k 1NF: ;m,-i.i,r ;i, !Ai:: a01,
am%or ,,,, w
Rfokinq our Mlighborhuad o Gav: Plaw to I hr Klmk and Ploy"
Miami, FL. 33126
Anne.manning@earthlink.net
(fax) 305-471-9750
regret that we are in this position. I thank you for your immediate attention to this
matter.
Very truly yours,
g17��l�l
Evan Fancher, Executive Director
City of South Miami Community Redevelopment Agency
cc: Cynthia Johnson -Stacks, PA, General Counsel,
City of South Miami Community Redevelopment Agency
Michael J. Yates, P.L, Attorney -at -law
U.S. Specialty Insurance Company, Surety
E
South Miami Community Redevelopment Agency
6130 St INSET DRIVE SOUTH MIAMI, FLORIDA 33143 PHONE: 305 668-7236 FAX: 305-668-7356 www.cityofsouthmiann.net
Exhibit 2
LAW OFFICES OF MICHAEL J. YATES, P.L.
Michael 3. Yates, P.E., Esq.
December 3, 2019
VIA US MAIL/EMAIL: 0])jstackslaw.com
Cynthia Johnson -Stacks, Esq.
P.O. Box 566772
Miami, Florida 33256-6772
Sunset Station Plaza
5975 Sunset Drive
Suite 602
Miami, Florida 33143
Voice: 305-666-8100
Fax: 305-666-8106
Email: myates@mjylaw.com
RE: Miami -Dade Affordable Housing Foundation, Inc. / SMCRA Demand for
Reversion of Property located at 6179 SW 62nd Terrace, South Miami, Florida
Our File#: 2018-122
Dear Ms. Johnson -Stacks:
The Miami -Dade Affordable Housing Foundation, Inc.'s (the "Foundation'D Board of
Directors convened to discuss a resolution of this matter and have made the following
determination responsive to the South Miami Community Redevelopment Agency's ("SMCRA'D
demand for the title to above referenced property revert back to the SMCRA. The Foundation
wishes to return the property to the SMCRA under the following conditions:
• SMCRA will be responsible for the demolition of said Property located at 6179 SW
62"d Terrace, South Miami, Florida.
• SMCRA will waive any claims, rights or actions and otherwise assign its rights
under the performance bond involving this Property to.the Foundation (assuming
the performance bond was executed).
• SMCRA will assign any rights, claims or actions that will maintain the
Foundation's current lawsuit for damages (and not otherwise impede it) against
the surveyor, architect or other parties, if found culpable, by virtue of losing title
to the Property.
• The Foundation takes pride in the history and business relationship it has with
SMCRA and the City of South Miami. The six (6) homes built by the Foundation
are representative of excellence in design and affordability and serve as a model
throughout our county. In this case, as with the other South Miami properties,
the Foundation followed all procedures and received all requirement permitting.
The Foundation, as a non-profit organization with limited funding for its work in
the affordable housing arena, requests that the SMCRA and the Foundation
share the costs expended in this development (of which it cannot or may not
recoup through others). Excluding legal fees, the Foundation has expended
$186,620.94 on construction and related services, and as such, kindly asks the
SMCRA consider a $50,000.00 contribution to help offset the Foundation's losses. 9
Cynthia Johnson -Stacks, Esq.
December 3, 2019
Page 2
Thank you and should you have any questions or comments, do not hesitate to contact me
to discuss.
Sincerely,
LAW OFFICES OF MICHAEL J. YATES, P.L.
MiLhael J. Yates
Board Certified in Construction Law
MJY/jh
cc: Mr. Evan Fancher, Exec. Director, SMCRA (via email: EFancher(alsouthmiamifl.aov)
Client (via email)
10
MIAMI-DADE COUNTY BUILDING DEPARTMENT
Building Support Section
11005 S.W. se stead (CWat Way). ttosm gab
U40L FL 33175.2474
Phomr. (7261315.213g
relic (790) 316.2912
NOTICE:017 LIEN EL.ATIVE TO SOUTH FLORIDA 9UIL.DING
CE, UN FE STRUCTURES ENFORCEMENT
ENFORCEMENT: CHAPTER 2
CASE ADDRESS: 7111 NW 16 AVE
Page 1 of 1
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Gig. C1; 2330� Fs 2201, t log )
$►'£CORDED 04/25/20115 10:21:01
HARVEY 6010r CLERK DF COURT
DIAHi-DADE CIWHft ( FLORIDA
.AST PA6E
COC OFFICIAL USE ONLY
LIEN
Pursuant'�hrpter 2, Section 202.11 of the South Florida Building Co c, notice is hereby given that there has been n assessed ra lien,
pant to the provisions of said law. against; ----- - �'
MIAMI DADE AFFORDABLE HOUS(NG
Whose address is: FOUNDATION INC 25 WEST FLAGLER ST STE 750 MUM FL 331301718
owners) of the property described as:CORR PLAT OF LIBERTY CITY PARK PB 41-65 LOT 2 BLK 2 LOT SIZE SITE VALUE
OR 21461-26510603 3
The lien is assessed against the above described property for costs of enforcement initiated to rcquiro the owner to corry�ct the South
Florida Building Code violations in a building(s) on said property. The sum of S3,943.80 which, after demand for payf'ient, ramains
unpaid, and that by the virtue of the above mentioned law, the amount, together with interest and costs that may accrue in addition
thereto constitute a lien in favor of the Miami -Dade County, Building Department upon the title to and interest In, whether legal or
equltabto, the property hereinabove described.
WITNESS: The official seal of the Miami -Dade County Building Department and the hand of the Building Department Official
themof, Miami, Florida this 6th day of April, 2005.
Ricardo Ruig n
Coordinating Manager
ee SeemunpI, Deputy t
Seal Mian)i Dade County Building
11905 S.W. 26 ST
Miami, Florida 33175
Prepared by:
Th19 Itutrnmettt was prepgMd by
JENiNIFER rill. MALCOM
BUILDING DEPART611ENT
11805 S.W. 26 ST
MIAMI, FL 3317S
itttp://bidgappl.tniatnidade.gov/DncumentsBuildingSupport/Lienf274815.htni 4/6/2005
Book23304IPage2201 CFN#2005041 0381 Page 1 of 1
httpsJ/onlineservices.miami-dadeclerk.com/officialrecords/CFNDetailsHTML5.aspx?QS=S... 3/2/2020