HomeMy WebLinkAboutO-12112J-01-790
09-25-01
ORDINANCE NO. 12112
AN EMERGENCY ORDINANCE OF THE MIAMI CITY
COMMISSION DIRECTING THE CITY MANAGER TO
IDENTIFY $400,000 FROM THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) LINE OF CREDIT
OR AVAILBLE PROGRAM INCOME TO MEET THE DEBT
SERVICE OF THE SECTION 108 LOAN PROGRAM IN
THE 26TH AND 27TH CDBG PROGARM YEARS.
WHEREAS, the federal regulations require an entitlement
community to pledge its CDBG allocation as collateral for its
Section 108 Loans; and
WHEREAS, in the 26th Year, the City Commission approved the
allocation of $1,000,678 and in the 27th Year, 1,100,000 was
approved to cover the debt service of the City's Section 108
Loans for the Wynwood Foreign Trade Zone and, in accordance with
the Interlocal Agreement between the City and the Community
Redevelopment Agency, the Southeast Overtown Park West Loan; and
WHEREAS, in the 26th Year, the debt service obligation was
underestimated by approximately $183,5000; and
WHEREAS, the Administration purposes preventative action to
preclude a similar situation in the 27th Year;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to. this Ordinance are adopted by reference and
incorporated as if fully set forth in this Section.
Section 2. The City Manager is hereby directed to
identify $400,000 from the Community Development Block Grant
(CDBG) Line of Credit or available Program Income to meet the
debt service obligation of the Section 108 Loan Program in the
26t'' and 27t' CDBG Program Years.
Section 3. All ordinances or parts of ordinances insofar
as they are inconsistent or in conflict with the provisions of
the Ordinance, are hereby repealed.
Section 4. If any section, part of section, paragraph,
clause, phrase or word of this Ordinance is declared invalid, the
remaining provisions of this Ordinance shall not be affected.
Section 5. This Ordinance is hereby declared to be an
emergency measure on the grounds of urgent public need for the
preservation of peace, health, safety, and property of the City
of Miami, and upon the further grounds of the necessity to make
the required and necessary payments to its employees and
officers, payment of its debts, necessary and required purchases
12112
of goods and supplies and to generally carry on the functions and
duties of municipal affairs.
Section 6. The requirement of reading this Ordinance on
two separate days is hereby dispensed with by an affirmative vote
of not less than four-fifths of the members of the Commission.
Section 7. This Ordinance shall become effective upon
its adoption and signature of the Mayor.'/
PASSED ON FIRST READING BY TITLE ONLY this 25th day
of September r 2001.
JOE CAROLLO,MAYOR
in accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of
this legislation by signing in the designated place provided, said l&--lislation i,i(_x11
becomes effective with the elapse of ten (10) days from the date of commission action
regarding same, without the Mayor exercising a vote.
0
ATTEST:
W A ter J 'F o e m an, City -Clerk
Na.1te-r J--. Foemaii
City Clerk
APPROVED AS T
ORNEY
W1 :BSS:kdw
RM AND CORRECTNESS:
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If the Mayor does not sign this Ordinance, it shall become effective at
the end of ten calendar days from the date it was passed and adopted.
If the Mayor vetoes this Ordinance, it shall become effective
immediately upon override of the veto by the City Commission.
Page 3 of 3 12112
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and Members DATE:
of the City Commission
SUBJECT:
FROM: /L los A. Gimenez REFERENCES
City Manager
ENCLOSURES:
RECOMMENDATION:
FILE:
SEP 12 2`1101
Allocation of CDBG Funds
to Meet Section 108 Loan
Guarantees
City Commission Agenda
September 25, 2001
It is respectfully recommended that the City Commission adopt the attached emergency
ordinance directing the City Manager to identify $400,000 from the Community Development
Block Grant (CDBG) Line of Credit or available Program Income to meet the debt service of the
Section 108 Loan Program.
BACKGROUND:
During the Public Hearing process to allocate 26th and 27th Year Community Development Block
Grant (CDBG) funds, the Administration identified CDBG funds specifically targeted to meet the
City's Section 108 debt service obligation. In the 26th Year, the City Commission approved the
allocation of $1,000,678 for this purpose and in the 27th Year $1,100,000 was approved to cover
the debt service.
As you are aware, under federal regulations, an entitlement community must pledge its CDBG
allocation as collateral for its Section 108 loans. As a result, the City is required to satisfy the
debt service on the Section 108 Loan for the Wynwood Foreign Trade Zone and, in accordance
with the Interlocal Agreement between the City and the Community Redevelopment Agency, it is
also paying the Southeast Overtown Park West Loan.
In the 26th Year, the debt service obligation was underestimated by approximately $183,500.
Therefore, the proposed resolution directs the City Manager to identify funds from the CDBG
Line of Credit or available Program Income to meet this shortfall. In addition, the proposed
resolution further provides the flexibility for the City Manager to take a similar action if 27th
Year payments also exceed the $1.1 million targeted for this purpose.
It is recommended that the City Commission adopt the proposed resolution that directs the City
Manager to identify $400,000 from the CDBG Line of Credit or available Program Income to
meet the debt service of the Section 108 Loan Program in the 26th and 27th CDBG Program
Years.
DB/GCW/DF
12112