North Miami CRA approves amended infrastructure agreement for Redwood project after pressing developer for timetable

The North Miami Community Redevelopment Agency voted 4-1 to approve an assignment and amended infrastructure grant agreement for the Redwood development, authorizing transfer of agreements from Redwood CP Dev LLC to Redwood CP Holdings 1 LLC and authorizing staff to execute final documents.

Agency staff summarized the agreement to the board before the vote, saying the CRA’s lien rights will apply only to Building 1 (the only building receiving CRA funding), the grantee will not seek tax exemptions on 7,000 square feet of commercial space in Building 1, and the project now guarantees a minimum of 100,000 square feet of taxable commercial space across the development. Staff also said the developer will provide 20 scholarships annually at a rate of $55,555.55 and that the aggregate scholarship commitment over the life of the CRA is $1,000,000. Staff told the board the developer is no longer seeking the previously discussed 50% tax-increment recapture grant and that the transaction is now an infrastructure agreement.

“Those scholarship funds will be paid to the CRA, and we will distribute them under an agreement separate from our TIF dollars,” an agency official said, stressing the funds are not drawn from the CRA’s TIF operating account.

Board members pressed staff and the agency attorney about how the scholarship totals and other dollar figures entered the posted draft. One member said he learned of the $1,000,000 aggregate only after the final agreement was posted, and asked why individual board members had not each been consulted on scholarship amounts. The agency attorney said the developer proffered the scholarship figure in the draft and that agency staff negotiated remedies and liquidated damages, not the dollar amount itself.

A councilman pressed Redwood representatives for a firmer construction timetable. Max Daniels, a developer representative, said the project was in a strong underwriting position and that the team expected to close in October, adding, “We can work on that for sure,” when asked to produce a specific schedule within two weeks. The agency reiterated that loan funds—about $8 million—must be spent by next year; staff said the CRA needs to see actual construction activity, not only a ceremonial groundbreaking, to begin reimbursements and avoid reallocating funds to another project.

City liaison Larry Spring of Achievement Consulting Group described recent progress on permits and said the project team has been coordinating with North Miami Beach on water-service and hydrant connections. “We will tap into the city’s waterline to provide for the hydrants,” Spring said, noting signatures for permits were obtained in the prior 48 hours and that the team will continue monthly coordination meetings to address outstanding site maintenance and signage issues.

Public comment was limited. A commenter asked where scholarship payments would be made; staff confirmed the funds will be routed to the CRA for distribution under the agreement. After public comment the board voted to approve the resolution. Chairman Desilme moved the measure; board member Charles seconded. The resolution passed by a 4-1 vote.

The agency announced it will hold budget briefings throughout August, a budget workshop on Aug. 25 at 5:30 p.m., a grantee reception on Aug. 27, and its next regular meeting on Sept. 8; the city’s adoption hearing on the related budget is scheduled for Sept. 15. The CRA was placed on recess pending those meetings.