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HomeMy WebLinkAboutOMNI-CRA-R-03-0023• .0 RESOLUTION OMNI/CRA R- 0 3 — 23 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (THE "OMNI CRA") ADOPTING THE CRA LOAN POLICY AS PROVIDED IN THE ATTACHED EXHIBIT `A'. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are incorporated herein as if fully set forth in this Section. Section 2. That the CRA Board of Directors hereby adopts the CRA Loan Policy for the OMNI Redevelopment Area as the agency's loan program utilizing OMNI TIF Trust Funds Account Number 686001.590320. Section 3. This Resolution shall be effective upon its adoption. PASSED AND ADOPTED this 3 1 " day of March 2003. ARTHUR E. TEELE�JR�IR�MAN A T: PRISCILLA A. THOM SON, ` CLERK OF THE BOARD APPROVED AS TO FORM AND CORRECTNESS: MIUMIMPSM.1111Fi- w :94J IVA CRA GENERAL COUNSEL OMNI/CRA 03 - 23 EXHIBIT A • ITEM 9 COMMUNITY REDEVELOPMENT AGENCY LOAN POLICY The Community Redevelopment Agency ("CRA") is charged with eliminating slum and blight within the redevelopment area in accordance with its approved Redevelopment Plan. In furtherance of this mission, the CRA seeks to foster economic development through incentives to private investors and entrepreneurs. The CRA has implemented this Loan Policy as a strategic element of its program for accomplishment of its redevelopment mission. Eligibility: The CRA will provide loans to businesses and property owners for projects within the boundaries of the redevelopment agency. Subject to funding availability, loans will be awarded on a first come first served basis for. projects deemed in furtherance of the objectives of the CRA as articulated in the Redevelopment Plan. At a minimum, loan recipients will be required to demonstrate the creation or retention of one full-time equivalent job for a period of one year for each $35,000 received. Employees filling the designated positions must reside in one of the redevelopment areas. Additional requirements may be imposed depending on funding sources. . Fundin /g/Approval• The. CRA's funding allocation for loans will be shown as a line item in the CRA's annual budget. The total amount of loans awarded in any fiscal year shall not exceed the budgeted amount. No loan shall be made without the approval of the CRA Board of Directors. CRA staff shall receive and evaluate loan requests and make loan recommendations to the CRA Board of Directors. Loan Amount: Loan amounts will be based on the CRA's current funding allocation, the borrower's intended use of the funds, an evaluation of the perceived benefits to the community, and- the prospect for attainment of the objectives of the CRA. Term: Loan duration will be based on the intended use of the funds, but it is anticipated that loan duration will generally not exceed five years. Interest Rate/Collateral:. As an incentive program for the location and enhancement of business projects within blighted areas, it is anticipated that loans will be offered at below market rates, on terms that, where appropriate, offer abatement of interest and/or forgiveness of principal and that required collateral will be less than would be required by commercial lenders. ®/CR.A 03- 23 • ITEM 9 COMMUNITY REDEVELOPMENT AGENCY 0 LOAN POLICY • The Community Redevelopment Agency ("CRA") is charged with eliminating slum and blight within the redevelopment area in accordance with its approved Redevelopment Plan. In furtherance of this mission, the CRA seeks to foster economic development through incentives to private investors and entrepreneurs. The CRA has implemented this Loan Policy as a strategic element of its program for accomplishment of its redevelopment mission. Eligibility: The CRA will provide loans to businesses and property owners for projects within the boundaries of the redevelopment agency. Subject to funding availability, loans will be awarded on a first come first served basis for projects deemed in furtherance of the objectives of the CRA as articulated in the Redevelopment Plan. At a minimum, loan recipients will be required to demonstrate the creation or retention of one full-time equivalent job for a period of one year for each $35,000 received. Employees filling the designated positions must reside in one of the redevelopment areas. Additional requirements may be imposed depending on funding sources. Funding/Approval: The CRA's funding allocation for loans will be shown as a line item in the CRA's annual budget. The total amount of loans awarded in any fiscal year shall not exceed the budgeted amount. No loan shall be made without the approval of the CRA Board of Directors. CRA staff shall receive and evaluate loan requests and make loan recommendations to the CRA Board of Directors. Loan Amount: Loan amounts will be based on the CRA's current funding allocation, the borrower's intended use of the funds, an evaluation of the perceived benefits to the community, and the prospect for attainment of the objectives of the CRA. Term - Loan duration will be based on the intended use of the funds, but it is anticipated that loan duration will generally not exceed five years. Interest Rate/Collateral: As an incentive program for the location and enhancement of business projects within blighted areas, it is anticipated that loans will be offered at below market rates, on terms that, where appropriate, offer abatement of interest and/or forgiveness of principal and that required collateral will be less than would be required by commercial lenders. OMM/CRA 03- 23 • 0 ITEM 9 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM To: Chairman Arthur E. Teele, Jr. and Date: March 18, 2003 File: Members of the CRA Board Subject: CRA Loan Terms From: ra K. Rollason References: CRA Executive Director Enclosures: Resolution, Loan Terms RECOMMENDATION It is respectfully recommended that the Board of Directors adopt the attached CRA Loan Policy for the Southeast Overtown/ Park West and Omni Redevelopment Agencies as set forth in the attached Exhibit JUSTIFICATION/BACKGROUND: As a component of the Agency's mission for the elimination of slum and blight, the agency is charged with countering the `dis-investment', which has occurred in recent years, by fostering new economic initiatives. This includes the issuing of loans to viable business endeavors. This policy represents a conservative loan program, which is an interim measure until a full scale program is established to meet the varying needs of business persons who wish to participate. The National Development Council has been, engaged to propose a financial strategy which includes provision of assistance to businesses, through the NDC Grow America Fund, for the purpose of expanding or establishing a business. FUNDING SOURCE: ACCOUNT NUMBERS: SEOPW TIF TRUST FUND 689001.550108 FUNDING SOURCE: OMNI TIF TRUST FUND ACCOUNT NUMBERS: 686001.590320 FKR/em O1VlWCRA 03-- 23