HomeMy WebLinkAboutSEOPW-CRA-M-97-0005i
j CITY OF MIAMI, FLORIDA
j� INTER -OFFICE MEMORANDUM
I
TO: Board of Directors DATE: June 13, 1997 FILE
Community Redevelopment Agency
SUBJECT: Approval of National Development
Council, Inc. Professional Services
i Agreement
Comm. Humberto Hernandez REFERENCES:
FROM: Chairman
Community Redevelopment Agency ENCLOSURES: 3
Since the Board last considered the Agreement between the CRA and the National Development
i Council, Inc. (NDC), NDC has approached us with the following amendment to the Agreement:
in addition to the other services that NDC has to offer (as detailed in Agreement and memo dated
11/18/1996), NDC will also make an equity infusion into the Grow America, Inc. that will enable
jthe CRA to leverage up to $750,000 in financing for area commercial, light industrial and/or
retail projects. The availability of such funds for small and minority business financing in the
I area will greatly benefit its residents and business establishments and greatly further our efforts
towards community empowerment.
To briefly review some of the accomplishments of our relationship with NDC in the last five
years, NDC was instrumental in:
• obtaining HUD approval for the City to use $4.8 million dollars to restructure the Southeast
Overtown/Park West Redevelopment District's debt and in orchestrating the entire process;
• securing $2.5 million Section 108 loan financing to develop the Citadel project;
• securing FHA correspondence shield for the City's housing division;
• initiating Section 108 application process for the Wynwood Foreign Trade Zone Complex
and structuring the financing, as required by HUD;
• pre -qualifying buyers for Poinciana Village Phase III
• structuring financing for several community based housing projects in Overtown that will
bring in excess of 300 homeownership housing units to Overtown;
I • implementing the Grow America Fund program in Miami. Through participation in the
program, the CRA was able to secure new financing for People's Barbecue through the Grow
America SBA 7(a) program. As a direct result of this effort, the business has been fully
j operational at its new location for over two months and has extended its hours of operation to
lunch and dinner. As a result of the $200,000 in new investment brought into the deal, 6 new
jobs were created and 2 retained, and this $685,000 commercial project in Overtown was
finally completed; and
• furthering the Agency's participation in the Grow America Fund by extending a $100,000
loan to United Food, Inc. and assisting in restructuring their debt with Miami Capital,
thereby reducing their monthly debt service and conserving their capital for use as working
capital. The deal has not only saved the business thousands of dollars in debt service over the
last 6 months, but is proving vital to the business in their initial stages of production and
marketing due to the added flexibility the new equipment has brought to their production
line. The business will initially create an estimated 10 new jobs in Overtown and is expected
to create and additional 30 new jobs before the end of the calendar year. The project brings
$1,036,200 in new investment into the area.
Additionally, NDC is currently:
• obtaining FHA/FNMAE financing of Poinciana Village, at the Southeast Overtown/Park
West Redevelopment District;
• exploring the possibility of using Affordable Housing Bonds for homeownership in
Overtown; and
• assisting in various other financing products to complement development in the Southeast
Overtown/Park West and Omni Redevelopment Districts.
Given the NDC's effectiveness in the past four years of continued involvement in the area, the
fact that the need for their services still exists, and that the equity contribution they have put forth
can greatly enhance our efforts in the area, we would like to recommend approval of enclosed
Resolution and Professional Services Agreement.
Attachments:
Professional Services Agreement
Resolution
NDC correspondence dated 5/9/97
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